House Bill 423 would automatically enroll newly hired Delaware state employees in the Delaware DEFER 457(b) retirement plan, pending Gov. Matt Meyer’s signature.
Within 90 days of starting work, employees would begin contributing at a default rate set by the Plans Management Board, though they could change that rate anytime.
Workers could opt out within 120 days of hire and receive refunds of contributions already made, making enrollment the default rather than requiring employees to sign up first.
Supporters say the shift should lift retirement-plan participation after a May enrollment campaign drove a 45% year-over-year jump in new accounts and a 2023 law expanded eligibility to casual and seasonal workers.
The measure drew bipartisan backing, including unanimous Senate approval, but will take effect only after Meyer signs it and payroll-system upgrades are certified complete.