October 15^th is the registration deadline for a new mandated state retirement savings plan intended to help workers of Delaware companies with five or more employees save for retirement. Last week, Ted Griffith, EARNS Program Director, gave an overview of the program to DCA’s HR Committee. Employers who offer any of the following are exempt but MUST still register with the program:

401(K) plans
403(B) plans
403(A) plans
408(K) plans
Government deferred compensation plan
Simple IRA plan
Traditional Pension plan

Additionally, Director Griffith did confirm, following a DCA inquiry, that coverage of employees through a multi-employer ERISA plan is also determined to be qualification for an employer exemption.

Unlike the state’s Paid Family and Medical Leave Act this plan is voluntary on an opt-out bases for employees, employers are not allowed to contribute, and the administrative burden rests with the state. There is no charge to employers and no liability for the soundness of investment plans.

All of the committee members present for the meeting work for companies that are exempt due to their retirement plan offerings. Those who had already gone through the exemption certification process said it was quick and easy. Director Griffith was both knowledgeable and helpful and we appreciated his communication regarding this new initiative.