® Introduction GIG m What we know from eetings take place every two m the Summits and from onths and are the many partners of Choose to Save co-convened jointly by ASEC and the Departm and ASEC, is that there ent of Chairman Fitzgerald and distinguished members of the Subcommittee. Thank you for the opportunity to the Treasury. Representatives from are many organizations and individuals truly com approximately 12 federal agencies have regularly participated in these mitted to helping Americans become financially literate speak to you today on the important role the federal government can play in helping to educate Americans and even savvy. This is a topic that touches all of us and will have a lasting effect on future generations. meetings over the past eight years. GIG meetings are informative and informal and serve as a highly Statement about their finances. The new national Com effective information clearinghouse. mission is in a position to really make a difference and create change. The Commission could help the president and Congress make the 2005 SAVER Summit a truly national event Before the As background, my name is Don Blandin and I am president of the American Savings Education Council W that serves to attract m e feel that three factors greatly contribute to the any new partners across the nation. success and longevity of GIG: 1) a commitment by our (ASEC) —a coalition of private- and public-sector organizations that undertakes initiatives to raise public partner organizations to attend the meetings ? over time, attendees have gotten to know each other very Senate Governmental Affairs Subcommittee on Financial Management, awareness about what is needed to ensure long-term personal financial independence. As an entity made up of government agencies, the Commission has access to millions of Americans who well, have a real feel for what each organization can bring to the table (if someone cannot attend, a look to the government for objective assistance and guidance in their lives. Our private-sector partners substitute is usually sent in their place), and work well together; 2) it is a trusted, non-threatening forum for ASEC works through its partners to educate Americans on all aspects of personal finance, saving, and have also shown us that they are committed to the issue of financial education, and are willing and able to information exchange ? people are very com the Budget, and International Security fortable sharing their ideas and opinions, asking for wealth development, including credit management, college savings, home purchase, and retirement assist the Commission with its mission. assistance/counsel, and providing materials and support to assist each other’s events/initiatives; and 3) it planning. ASEC develops and distributes educational materials, all of which are available in hard copy and has provided effective time management ? a lot of work can be accomplished in a short period of time Hearing on Financial Education and Literacy on the ASEC Web sites: www.asec.org and www.choosetosave.org As I said at the beginning of my testimony, by reaching out to groups and organizations at all levels, we (e.g., ASEC updates all the agencies about upcoming opportunities and events that we know about on the will be able to achieve greater things collectively than any of us would be able to do alone. local, state, and national levels and agency representatives are quick to express an interest and often offer March 30, 2004 ASEC was launched in July 1995 as a result of discussions between representatives of the U.S. Department their assistance/input on a project). of Labor and the Employee Benefit Research Institute (EBRI) about taking the savings message to the Thank you for the invitation to appear before you today. I would be pleased to take questions and to American public. ASEC is a program of the EBRI Education and Research Fund (EBRI-ERF), a 501(c)(3) respond to any written questions following the hearing. GIG attendees leave the meetings knowing what all the other agencies are currently doing in the area of nonprofit, nonpartisan public policy research organization based in Washington, DC. We do not lobby or financial education. And those seeking assistance with a project usually come out with valuable contacts advocate specific policy recommendations. ### of people and agencies willing to immediately help. Overall, it is truly a win-win arrangement for T-142 everyone. As president of ASEC since 1996, I have had the unique privilege and opportunity to work closely with public- and private-sector organizations that are truly committed to helping Americans to save and plan for Challenges & Possibilities their financial future. In this period of unprecedented attention to the topic of financial literacy, it is Even despite our efforts to coordinate our work and explore all possibilities in pushing the savings imperative that we bring together interested parties and “connect the dots” among their efforts. education message, we still face some major challenges. It is very challenging to engage the public about the importance of saving and planning for their future when m any people are not receptive to hearing the We feel strongly that by combining and leveraging our partners’ comprehensive networks and resources, message. We have all tried to reach out to individuals through public service campaigns, education we are able to reach people collectively who none of us would be able to reach alone. Education is still materials and Web sites, meetings and seminars, etc. Though we are able to reach small segments of the By key in helping individuals make changes in their financial behavior and we fully support any initiative to population, millions of Americans remain very lackadaisical about their financial planning approach. To forward this mission that we all share. borrow from Aesop’s Fable about the grasshopper and the ant, we seem to be dealing with a lot more “live Don M. Blandin, President for today” grasshoppers than “plan for tomorrow” ants. Overview First and foremost, I would like to commend the creation by Congress of the Financial Literacy and American Savings Education Council Millions of baby boomers are expecting to retire in the near future, but our research shows that many are Education Commission. I had the pleasure of attending the Commission’s first meeting in January, inadequately prepared to support themselves financially in retirement. With so many people leaning on our convened by the U.S. Department of the Treasury, which brought together representatives from an retirement systems at one time, it is imperative that people understand what a toll it will take on the entire Washington, DC extensive list of federal agencies and outlined substantive plans for the Commission. It was reassuring to nation and the degree to which they will have to depend on themselves, rather than others. see so many heads of agencies and their staff attend the meeting and show their support and commitment to www.asec.org the Commission. Second, we are not seeing enough coordination and outreach among groups that are very involved in this issue of financial education. Organizations are more apt to create their own campaign or event, even re- Additionally, I would like to commend Congress for enacting the Financial Literacy and Education www.choosetosave.org invent the wheel, rather than collaborate on programs and initiatives that will have the biggest impact. The Improvement Act. The document is very comprehensive and well-thought-out and clearly lays the potential exists for public- and private-sector organizations ? including employers; corporations; groundwork for the Commission’s work. The American Savings Education Council looks forward to financial, educational, and consumer groups; nonprofit organizations; trade organizations; and government www.ebri.org helping the Commission meet all of its goals and objectives. agencies ? to align themselves under one massive, far-reaching, “umbrella” financial education campaign. ASEC Government Interagency Group (GIG) Finally, the Congress and the president have an opportunity in 2005 to build added momentum and At ASEC, our goal is to bring together organizations and groups that might not normally be “at the same coordination when the third White House and Congressional Summit on Retirement Savings will be held, table” ? but that clearly should be at the same table. From the beginning, we recognized the important as called for by the SAVER Act (Savings Are Vital to Everyone’s Retirement Act) of 1997. Previous The American Savings Education Council is a program of the EBRI Education and Research Fund, a 501(c)(3) contributions and efforts of each of our government partners. As a matter of fact, two federal agencies organization. The views expressed in this statem Summits in 1998 and 2001 provided an opportunity for hundreds of delegates to work together to design ent are solely those of Don M. Blandin and should not be attributed ® were integral in helping to launch ASEC in July 1995 ? the Department of Labor and the Department of to the Employee Benefit Research Institute (EBRI), the EBRI Education and Research Fund, the American Savings initiatives that could make a difference. Both Summits endorsed the Choose to Save television and radio the Treasury. In an attempt to facilitate coordination and open the lines of communication between our Education Council, or any of their officers, trustees, sponsors, or other staff. The Employee Benefit Research PSA program, now in its seventh year, which now runs in 49 states. government partners, in 1996 we created the ASEC Government Interagency Group or, in short, GIG. Institute is a nonprofit, nonpartisan, education and research organization established in Washington, DC in 1978. The testim ony draws heavily from research publications of the Employee Benefit Research Institute, but any errors or misinterpretations are those of the witness. 4 2 3