Presented by: CSM (R) Charles E. Durr
“Providing a Valuable Tool
for Commanders”
Army Worldwide BOSS Conference
30 September 2015
“Soldiers Helping Soldiers”
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
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AER, “The Organization of Choice”
Alternatives to AER
Value Proposition (zero interest)
AER of Yesterday, Today and Tomorrow
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AER Mission and Essential Tasks
Mission:
“ 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 Grants
Educational Assistance
– Scholarships (Grants)
Conduct annual campaign
Manage Soldier Funds
Promote goodness of AER programs
and benefits
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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 members
Surviving Spouses and Orphans
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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
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Why do Soldiers use an
Alternative rather than AER?
Unaware of AER and its benefits
• Concerns about Chain of Command Involvement
• Embarrassed
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What will they Use?
• Car Title Loans
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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-8
33% of E-1 thru E-7
Financial Investment Regulatory Authority, 2014
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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
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Benefit of AER Assistance
$23.3 million saved in
interest in 2014
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Fulfilling our Mission
Awareness (through multiple venues at “high frequency”)
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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:
Where can BOSS
Representatives
help?
What happens
when your AER
Section is
closed?
• 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
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Tangible Identity and Impact
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
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Forms of Emergency Financial
Assistance
Loans:
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Interest free Loans
90% of Emergency Financial Assistance is in the form of a loan
Grants:
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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.
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Emergency Financial Assistance
Interest Free Loans and Grants
What areas can AER provide assistance?
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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)
Yesterday
Traditional Categories
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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
Yesterday
9 New Categories
(2010/2011)
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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
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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
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Unauthorized Categories of
Assistance
Assistance for:
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Divorces
Require an
Exception to Policy
Marriages
for consideration
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
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Scholarship Program
MG James Ursano Children’s Scholarship
2015
Children Applications - 5398
Spouses Applications - 2097
• 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)
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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 – 281K
Children – 509K
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Other Programs that Take Care of
Soldiers/Families
• 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
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Where BOSS Representatives
can help!
“Be a voice for the Soldier”
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
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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
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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.
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“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)
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“The Resilient Soldier”
We support Resiliency by not forcing Soldiers into “BAD” choices.
Factors that can affect a Soldiers Choice:
Culture – Stigma – Trust - Fear
CHOICES
Pay Day Loan
Auto Title Loan
Pawn Shop
AER
Soldier/Family Member
Refund Anticipation Loan
Local Banking Institution
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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
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Policy Changes in 2015
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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)
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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).
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“Soldiers helping Soldiers”
QUESTIONS?
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