Consumer Financial Protection Bureau July 8, 2016 What We Heard - - PowerPoint PPT Presentation

World Institute on Disability Consumer Financial Protection Bureau July 8, 2016

What We Heard

Met with organizations, legal representatives and individuals in Nebraska and nationally to discuss needs and expectations for an ABLE savings plan. Discussed range of accessibility and design issues as well as investment and banking needs.

• Persons with disabilities have hopes and dreams just like any other sibling, friend or family member.
• The goal of an ABLE plan is to create financial independence to help account owners become an

integral part of their community and as self-sufficient as possible.

• Parents and grandparents should have an easy way to give monetary gifts to all their children and

grandchildren.

• Parents want the security of knowing that when they pass, their child, no matter what age, will have

financial resources.

The Enable Savings Plan was designed with the disability community, not for the disability

• community. We did not assume we knew what the community wanted or needed.

Based on their feedback, our mission became to develop a plan:

• That could be understood and used by a broad-range of individuals with disabilities and their

legal representatives with minimal paperwork;

• That was low cost and flexible to appeal to individuals with varying investment goals and

time horizons;

• Provided educational resources including financial literacy tools; and
• Encourage both formal and grassroots, social media efforts to keep account
• wners and the disability community informed and educated.

Designed with the Community

Features

Open an Account

• Online or, if preferred, by completing a paper Enrollment Form
• Disability Type and Disability Code are self-certified at enrollment
• Authorized to Act features include:

−

Parents and guardians of an account owner for a minor

−

Authorized representatives (such as those with power of attorney, Conservators and Guardians) opening and managing an account on behalf of the account

• wner
• Understanding the importance of videos, How To videos are included on the site.

At launch there is a How to Open an Account video.

Home Page

• Most important information in the simple

navigation pane at the top of the page

• Links within boxes in the middle of the

page to important topics which can be swapped out as other important topics are surfaced

• Easy way to become part of our email

list

• Link to our hallmark video

Enroll Online

• Six steps with visuals to know which step

you are currently in

• Tips on the page to give additional

information to help complete the process

• The system will pre-fill information as

applicable

Invest

Five Investment Options. Account owners or their representatives can choose which one meets their personal needs based on their time horizon, personal situation and savings goals.

Investments are not FDIC Insured* No Bank, State or Federal Guarantee May Lose Value * Except the Bank Savings and Checking Account Investment Options

Three Target-Risk Investment Options

Growth Option Investment goal is for growth and some income 56% Domestic Equity 24% International Equity 20% Fixed Income Moderate Option Investment goal is a balance of growth and income 42% Domestic Equity 18% International Equity 35% Fixed Income 5% Cash Equivalent Conservative Option Investment goal is for current income and some growth 21% Domestic Equity 9% International Equity 55% Fixed Income 15% Cash Equivalent (5 – 10 years+ time horizon)

Bank Savings Option (3-5 year time horizon) This Investment Option offers a guaranteed return of investment and the stability of principal that is FDIC-insured. This option may be appropriate for those who want the security of a safe

• investment. (At launch 1.00% APY)

Checking Account Option (short time horizon – Launching fall 2016) The FDIC-insured checking account offers check writing and a debit card to pay for daily and repetitive qualified expenses. Limits to withdrawals are imposed.

Contributions to and earnings on investments in the Bank Savings and Checking Account Options are insured by the FDIC on a per participant, pass-through basis to each account owner up to the maximum limit established by federal law, which is currently $250,000.

FDIC-Insure Investment Options

Contribute

• Methods:

−

By check

−

Pre-scheduled automatic transfers from a bank account

−

One-time contribution from bank account

−

Payroll deduction through direct deposit

• Online gift certificates for friends and family
• $14,000 annual contribution limit and a maximum account balance limit of $360,000
• Notification when balance nears SSI impact limit of $100,000

Withdraw

• Funds withdrawn from Target-Risk and Bank Savings Option:

− Check to account owner or designated third party − ACH directly to owner’s bank account − Systematic withdrawal plan (e.g. to pay for rent on a specific day of the month)

• Checking Account

− Write a check − Use a debit card − Help individuals become more financially independent by having their own checking account and debit card like their peers

Manage

• Fully ADA-compliant website
• Public facing website features

− Blogs − Educational materials and financial literacy tools − Learning tools through videos − Online gift certificates for contributions by others Secure account access − View balances, statements, confirmations − Account maintenance such as changing address − Contribute and withdraw

• Customer Care Center 8:00 a.m. to 8:00 p.m. CT with Voice Response System and

TRS capabilities.

• Facebook and social media sharing

Sample Financial Literacy and Education

Are You Enable Ready?

Beginning of financial literacy series, this page is begins the thought process about how to get ready to have an Enable Savings Plan account.

• What do you want to save for?
• How much should you save?
• Make a plan to save
• Start saving

Enable U

Enable U within our resource section provides printable pages describing specific topics of

• interest. We currently have:
• Enable and Special Needs Trusts
• Enable and Inheritances or Settlements
• Conservator v. Guardians and Enable
• Grandparents and Enable
• Enable and SSI/SSDI Representative

Payees

• Enable Your Clients

Marketing and Outreach

Nebraska-Wide Short List

DHHS Disability Services and Medicaid Ollie-Webb Center as consultant Arc of Nebraska and all of their offices Special Olympics Commission for the Deaf and Hard of Hearing Commission for Blind and Visually Impaired Consortium of Citizens with Disabilities Nebraska Down Syndrome Society Vocational Rehab Groups Nebraska Bar Association Easter Seals Veterans Task Force ESU (in schools) Salt Dogs Homers Heroes All Pay League Efforts include: Pre-launch train the trainer Client forums Presence at their events Sponsorships Continuous outreach through onsite meetings, emails, sharing of information to disseminate to their constituents, Facebook, blogs

National Down Syndrome Society NDI The Arc of the United States TASH Autism Speaks Member of United States Access Board CFPB Efforts include: One-on-one meetings with leadership team Continuous conversations and information exchange Sponsoring national and leadership conferences Sharing of marketing materials, information, press releases, updates to distribute to their constituents, Facebook and blogs

National

Enable Savings Plan Legal Structure

Authority: Nebraska’s ABLE Act signed into law May 28, 2015 Issuer: The Nebraska Achieving A Better Life Experience Program Trust Trustee: Don Stenberg, Nebraska State Treasurer Investment Manager: Nebraska Investment Council Distributor: First National Capital Markets, Inc. Member FINRA, SIPC Program Manager: First National Bank of Omaha

First National Capital Markets and First National Bank of Omaha are affiliates.

Questions?

Deborah Goodkin, Managing Director 402-602-7204 dgoodkin@fnni.com