(The Center Square) – A new retirement plan will be available to private sector workers in Delaware.
House Bill 205, which was signed into law by Gov. John Carney on Thursday, will establish the Delaware Expanding Access for Retirement and Necessary Savings program. Under the program, workers will automatically be enrolled in the state-run retirement savings plan; they have an option to not participate.
The bill, sponsored by Rep. Larry Lambert, D-Claymont, could assist 150,000 workers from small businesses who may not have access to retirement plans through their employer.
According to the release, the bill would mandate businesses with more than five employees to participate in the program. It would also offer retirement plans for those businesses where it is not available.
The plan, according to the fiscal note attached to the bill, would take effect Dec. 31, 2025, or at a time when the board overseeing the program is able to transfer authority to the Plans Management Board.
Under the bill, those businesses that already offer retirement savings programs for employees would be exempt. For fiscal year 2022, according to the fiscal note, a program director would be hired for 10 months at a salary of $82,313, and investments of $150,000 would be made for investment consultant services.
In addition, $100,000 would be invested, according to the note, in program marketing and outreach to businesses who would qualify for the program, and another $50,000 for legal services.
For fiscal year 2023, the state anticipates $39,457 would be expended for personnel costs, and in fiscal year 2023, consulting costs would be reduced to zero dollars, while marketing costs would be set at $50,000.
Overall, the costs of the program for fiscal year 2022 would be $382,313, for fiscal year 2023 it would be $438,233, and fiscal year 2024 expenditures would be $277,691.