“Soldiers Helping Soldiers” Presented by: CSM (R) Charles E. Durr “Providing a Valuable Tool for Commanders” Army Worldwide BOSS Conference 30 September

“Soldiers Helping Soldiers”

Presented by: CSM (R) Charles E. Durr

“Providing a Valuable Tool for Commanders”

Army Worldwide BOSS Conference 30 September 2015


Objective

• Broaden your perspective – Awareness that translates into a better understanding

• Share key themes and messages that can be used to emphasize AER importance to Soldiers at your respective Installation– AER, “The Organization of Choice”– Alternatives to AER – Value Proposition (zero interest)– AER of Yesterday, Today and Tomorrow

[email protected] 9/30/2015


AER Mission and Essential TasksMission:

“ To collect and hold funds and to relieve distress of personnel of the Army of the United States and their dependents”

- Certificate of Incorporation, 3 March 1942

Essential Tasks:Emergency Financial Assistance

– Interest Free Loans and GrantsEducational Assistance

– Scholarships (Grants)Conduct annual campaign Manage Soldier FundsPromote goodness of AER programs

and benefits

[email protected] 9/30/2015 3

Eligibility:Active Component Soldiers and their immediate Family members Reserve/NG Soldiers on active duty for more than 30 consecutive days and their immediate Family members Retirees and Family membersSurviving Spouses and Orphans


Why is AER Important?

• Helps sustain “mission focused” Soldiers – Not distracted by financial problems

• Commander’s Program– Embedded within the structure of the Army– Serves as a tool to assist Leaders in caring for Soldiers– Expedient means to help with morale & welfare of Soldiers and their

Families– Requires stewardship at all levels of leadership

• Protection of Human Capital – AER supportive unit climate where it is O.K. to ask for help– Soldier’s perception of a negative stigma if seeking help– Alternatives - Car Title Loan Companies and Payday Lenders



Why do Soldiers use an Alternative rather than AER?

• Unaware of AER and its benefits • Concerns about Chain of Command Involvement• Embarrassed

What will they Use?

• Car Title Loans • Pay Day Loans• Refund Anticipation Loans• Pawn Shop Loans • Rent-to-own• Internet - Company with Off Shore Accounts

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49% of E1 thru E-4 31% of E-5 thru E-6 29% of E-7 thru E-833% of E-1 thru E-7

Financial Investment Regulatory Authority, 2014



AER Value Proposition

Fort Somewhere, U.S.A.

Total Assistance Cases: 1,419 (Recipients of AER assistance in the form of a loan)

Total Amount Disbursed: $2,140,787 (Total dollars received by recipients)

- At an interest rate of 36% (MLA coverage cap) on the total dollars disbursed ($2.1M), results in $770,683 in interest that will paid on the money borrowed

- $770,683/1419 results in $543 per recipient in interest saved



Benefit of AER Assistance

$23.3 million saved in interest in 2014



Fulfilling our MissionAwareness (through multiple venues at “high frequency”)• BOSS Meetings at your Installation• BOSS Facebook pages • DFMWR Webpages• AER Literature in Unit Areas (Company/BN/BDE)• BOSS Newsletters• “Word of Mouth” Advocate • Unit Newsletters • Partnership between BOSS Rep and Installation AER Officer

Access:• Army Installations - 78 locations worldwide• Air Force, Navy/Marine Corps and Coast Guard Military Aid Societies - 270 locations worldwide• The American Red Cross – Three Emergency Communication Centers (24/7 Operations) 1-877-272-7337


Where can BOSS Representatives

help?

What happens when your AER

Section is closed?


2014 Assistance in Dollars• $64.8 million in financial assistance

$1.2M to 714 Army Reserve Soldiers

$727K to 513 Army National Guard Soldiers

$15M to 9,061 Retirees

$1.87M in grants to 1,448 Surviving Spouses/Children

$46M to 35,287 Active Duty Soldiers

• $8.7 million in Scholarships

Tangible Identity and Impact



Forms of Emergency Financial Assistance

Loans:• Interest free Loans • 90% of Emergency Financial Assistance is in the form of a loan

Grants:• 10% of Emergency Financial Assistance is in the form of a grant.• A grant (outright gift of funds), should only be considered if repayment of a loan will cause undue hardship on the Soldier and Family. - Is not provided simply because a Soldier has a monthly budget deficit. - Must consider how they got there; irresponsible or is living above means? - Grants for Soldiers who have been financially irresponsible is rewarding the behavior while penalizing Soldiers who are repaying their loans may create resentment.• Grants are not given for expenses that will be reimbursed by Government.• A grant helps one – an interest free loan helps many.



Emergency Financial AssistanceInterest Free Loans and Grants

What areas can AER provide assistance?• Emergency Travel – Death or serious illness of a Family member• Rent – Inability to pay upcoming or past due rent; Initial Rent and Deposit • Essential POV Repair– Unexpected repairs for Essential Vehicle• Funeral Expenses – Death of immediate Family Member• Utilities – Inability to pay upcoming or past due utilities; Initial Deposit• Clothing – Delayed or lost household good shipment and natural disasters• No-pay – Non-receipt of pay as a result of DFAS error• Natural Disaster – Immediate need items (Food, Clothing, Shelter)

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YesterdayTraditional Categories



Additional Categories of Assistance

• Advanced Travel Funds - Delay in receipt of Advance Travel and Dislocation Allowance (DLA)

• Repair of HVAC - Repair of Heating & Cooling System up to $5,000• Purchase/Repair of Stoves and Refrigerator – Purchase appliances when

establishing a new household, replace as a result of natural disaster or repair when required

• Child Car Seats - Purchase for safety of minor children• Cranial Helmets - Medical necessity for treatment of moderate to severe head

deformities in children • Rental Vehicles - While on emergency leave or when essential vehicle is being

repaired• Replacement Vehicles - When cost of repairs exceed Blue Book Value of vehicle; up

to $4,000 • Furniture - When establishing a new household or replacement is required as a

result of a natural disaster • Dental Care for Dependents - Up to $5,000 for Dental needs necessary for individual

health

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Yesterday 9 New Categories

(2010/2011) [email protected] 9/30/2015


Minor Home Repair

This category provides financial assistance for unforeseen costs that arise as a result of home emergencies (LHS) that are not covered by basic Homeowner’s Insurance Policies. Assistance in this category is limited only to a Soldier’s residence for up to $5,000

• Hot Water Heater Replacement• Exterior Water Service Line Repair• Exterior Sewer/Septic Line Repair • Interior Plumbing and Drainage Repair• Interior Gas Line Repair • Exterior Electrical Wiring Repair• Interior Electrical Wiring Repair • Interior Telephone and Low Voltage Wiring Repair

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Today Effective 14 July 2015



Unauthorized Categories of Assistance

Assistance for:• Divorces• Marriages • Soldier’s Education Expenses• Ordinary Leave• Bad Checks • Civilian Court Fees, Fines, Judgments, Liens, Bail, Legal Fees, Tax Liens• Goods or Items for convenience, comfort or Luxury• Travel of Non-Command Sponsored Dependents• Abortions


Require an Exception to Policy for consideration


Scholarship Program

MG James Ursano Children’s Scholarship • Scholarship application window: 1 Jan – 1 May• Provides assistance with tuition, fees, books, supplies and room/board for undergraduate education• Eligibility: Children of Active Duty Soldiers and Retirees attending college full time

• Need Based

Spouse Scholarship • Scholarship application window: 1 Jan – 1 May•Provides assistance with tuition, fees, books and supplies for undergraduate education•Eligibility: Spouses of Active Duty Soldiers and Retirees attending college full or part time • Need Based

Items needed to apply:• AER Online Application (available 1 Jan – 1 May) • Free Application for Federal Student Aid (FAFSA)•Transcripts •Title 10 Orders (Reserve and National Guard) • Leave and Earning Statement (Active Duty Soldiers)

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59% of the Active Component is married

Spouses – 281KChildren – 509K

2015 Children Applications - 5398 Spouses Applications - 2097



• Commander’s Referral Program: Company Commander/First Sergeant can approve interest free loans up to $1,500– Chain of Command can directly respond to financial needs of Soldiers– Key is proper emphasis and utilization by the Unit Leaders– Are Company Commander’s/First Sergeants using the program?

• Wounded Warriors Comfort Grants: $500 grant (check or debit card) provided to Soldiers medically evacuated from theater of combat and hospitalized in an in-patient status– Can be used for any need– When visiting hospitalized Soldiers, ask if they received the grant

• AW2 Wounded Warrior Special Access Program: AW2 Wounded Warriors call or E-mail direct to HQ AER – Requests processed and funds provided by EFT within 24 to 48 hours

• Survivor Assistance : Applies to Surviving Spouses of active and retired Soldiers– Assistance provided in form of grants– Monthly financial stipend for the most destitute

Other Programs that Take Care of Soldiers/Families



Assessing the Climate

• Understand the feelings and opinions of Soldiers as it relates to AER

• Gather multiple perspectives (Loud and clear messages) – Are AER applications being held at the Company Level?– Are Soldiers being labeled for asking for help?– Overall awareness of AER Programs and benefits– Establishing local criteria inconsistent with AER policy– Roadblocks by Squad and Platoon leaders– Campaign period more focused on contributions than education


Provide feedback to your Garrison CSM at least

quarterly

Where BOSS Representatives can help! “Be a voice for the Soldier”


2013 OSD Quick Compass Survey Results on Use of Military Aid Societies

• Command Climate discourages use of Aid Society

• May lose a security clearance

• Receive non-judicial punishment

• Hurt their ability to get promoted

• Will be returned early from deployment or kept from deploying

• Embarrassment



2013 World-wide Assessment

One of the most significant findings as a result of feedback received from Soldiers and Leaders is that some Soldiers are reluctant to use AER due to the requirement to go through their immediate Commander and First Sergeant. Their concerns were as follows:

1) Pride: Embarrassed to admit need for financial help. 2) Confidentiality: Do not want Company/Battery personnel to know and discuss openly. 3) Fear: Risk potential for future promotion and selection for leadership and approval for Security clearances. 4) Stigma: Soldiers who experience a financial difficulty, equates to a “Problem Soldier” who can’t be trusted to manage personal affairs and other tasks.



“Through the Soldiers Eyes”

Institution Command Involvement Required Soldier Friendly

• Pay Day Lender No No (36% APR)

• Auto Title Loan No No (36% APR)

• Pawn Shop No No (36% APR) • Army Emergency Relief Yes Yes (0% APR)

• Refund Anticipation Company No No (36% APR)

• Local Banking Institution No Unknown (Based on Credit Worthiness)



“The Resilient Soldier”

We support Resiliency by not forcing Soldiers into “BAD” choices.

Pay Day Loan

Auto Title Loan

Pawn Shop

AER

Refund Anticipation Loan

Local Banking Institution


Soldier/Family Member

Factors that can affect a Soldiers Choice: Culture – Stigma – Trust - Fear

CHOICES


Policy Changes in 2013/2014

• Extended direct access for AER assistance to all Sergeant First Class (5.3% of Active Duty cases) (Company Commander/First Sergeant review and recommendation not required for non High Risk Soldiers) – effective 1 October 2013

• Extended direct access for AER assistance to all Sergeant and above (31.1% of Active Duty cases) (Company Commander/First Sergeant review and recommendation not required for non-High Risk Soldiers) - effective 1 January 2014



Policy Changes in 2015

• Effective 9 September 2015 - extended direct access for AER assistance to all Soldiers, regardless of rank without obtaining a review and recommendation from the Company Commander/First Sergeant with the following safeguards:

– Enlisted Soldiers with less than 12 months' time in service are not eligible for direct access to AER.

– Enlisted Soldiers in IET (BCT/AIT/OSUT) are not eligible for direct access to AER. – All Soldiers (Officer and Enlisted) who have 2 assists within a 12 month period or have been identified as a “High Risk” Soldier will require the Unit Commander/ First Sergeant review of their AER application.

• Private – Specialist (61.7% of Active Duty cases)



Summary

• AER is a tool to help Leaders take care of Soldiers and their Families.• Many different categories of assistance.• Many different programs to help:

– Soldiers: Commander’s Referral Program– Wounded Warriors: Wounded Warrior Comfort Grants– AW2 Soldiers: AW2 Special Access Cell– Spouses: Surviving Spouses

• New policy extends direct access to all Soldiers.• Encourage Soldiers to ask for assistance if they need help.

• Spread the message throughout your Installation (multiple venues at high frequency).



“Soldiers helping Soldiers”

QUESTIONS?


Documents

“Soldiers Helping Soldiers” Presented by: CSM (R) Charles E. Durr “Providing a Valuable Tool for Commanders” Army Worldwide BOSS Conference 30 September