Financial Literacy and Education Commission Public Meeting

November 18, 2015

U.S. Department of the Treasury – Cash Room

Preparing for Financial Security through Saving and Investing

Meeting Minutes

Opening Remarks

Melissa Koide, Deputy Assistant Secretary for Consumer Policy, U.S. Department of the Treasury opened the 

meeting describing its focus. Ms. Koide explained the purpose of the meeting was to discuss the importance of 

savings and the need inform and educate families and individuals about how to transitioning from saving to 

ultimately building wealth and investing.

Ms. Koide gave an overview of the agenda and thanked Acting Commissioner Carolyn Colvin and the U.S. 

Social Security Administration for their partnership in rolling out myRA.

Next, Amias Gerety, Acting Assistant Secretary for Financial Institutions, U.S. Department of the Treasury, 

welcomed Carolyn Colvin, Acting Commissioner of the Social Security Administration. Mr. Gerety 

congratulated Ms. Colvin on the Social Security Administration celebrating its 80th anniversary this year. Mr. 

Gerety welcomed Richard Cordray, Director of the Consumer Financial Protection Bureau and stated that the 

Commission can look forward to hearing more about the collaboration between the Consumer Financial 

Protection Bureau and the Social Security Administration to support retirement savings. Mr. Gerety introduced 

Secretary Jacob Lew, 76th Secretary of the U.S. Department of the Treasury and Chair of the Financial Literacy 

and Education Commission. Mr. Gerety thanked Secretary Lew for his work in driving myRA.

Secretary Jacob Lew, U.S. Department of the Treasury, stressed the importance of the meeting of the 

Commission and interagency collaboration. Secretary Lew acknowledged that the economy is doing better, but 

there are challenges ahead to make sure that everyone shares in the benefits of the growth so individuals have 

the ability to plan for a secure financial future.

Secretary Lew went on to say that Social Security is a wonderful foundation, but it is not enough and we need 

something to supplement Social Security to have the kind of retirement most people hope for. Secretary Lew 

shared it doesn’t start with retirement; it starts with learning how to manage your expenses, your budget and 

how to save for your own retirement. Secretary Lew acknowledged the many other hurdles people face while 

attempting to save and expressed that myRA is a product that addresses some of these hurdles. Secretary Lew 

expressed Treasury’s excitement over the launch of myRA and its ability to help people save with the starter 

product. Secretary Lew expressed that he is happy the Social Security Administration is working to make sure 

more Americans know about this important part of their financial future.

Secretary Lew concluded his remarks by acknowledging that having a secure financial future starts with 

knowledge and understanding what the options are. He expressed his delight that the meeting focused on the 

importance of a financially secure retirement.

Next, Richard Cordray, Director of the Consumer Financial Protection Bureau and Vice Chair of the 

Commission, shared that saving and investing are key building blocks for planning and securing our futures. 
Director Cordray highlighted how the CFPB is working with the Commission to promote financial security 

through smart saving practices among employees and the public. Director Cordray went into detail about some 

of the work being done on behalf of the federal workforce and CFPB employees.

Director Cordray shared that for the millions of Americans who do not have access to employer-sponsored 

retirement plans, myRA is an option for these individuals to start saving. Director Cordray explained that in 

today’s workplace, millions of Americans are employed as temporary, contract, intermittent, seasonal, or parttime workers. Because they are not full-time, full-salary employees, they may not have access to any employer 

retirement program (even if others in the same workforce do). These workers will now be able to use myRA as a 

vehicle to get ahead on their finances by saving for emergencies or for retirement.

Director Cordray shared that the Consumer Bureau recently released their 2015 Financial Literacy Annual 

Report, which discusses all of the aforementioned initiatives as well as the Bureau’s other programs to support 

financial well-being.

Carolyn Colvin, Acting Commissioner of the U.S. Social Security Administration, shared an update on the 

number of collaborations and partnerships the Social Security Administration is currently undertaking. 

Commissioner Colvin stressed the importance of collaboration among agencies. Commissioner Colvin shared 

that the CFPB rolled out a new online tool, developed jointly with the Social Security Administration, to help 

Americans plan when to begin receiving Social Security.

Commissioner Colvin shared that she was pleased to share that funding for Social Security’s disability 

insurance is secured until 2022 thanks to recent bipartisan legislation. Commissioner Colvin also shared the 

Administration is happy to be celebrating 80 years of helping Americans prepare for a secure retirement. 

Commissioner Colvin went on to share a snapshot of those receiving Social Security Benefits and how it 

impacts their lives. Commissioner Colvin explained that the Administration is working hard to educate the 

public about the importance of Social Security through ongoing initiatives like the Administration’s “Someday 

Campaign” and how it directly impacts their lives.

Commissioner Colvin stated that Social Security was never meant to be an individual’s only source of income 

in retirement. The Commissioner noted that myRA is a great product to help people supplement their Social 

Security. The Commissioner voiced her continued support of the myRA product and the impact it stands to have 

on the future of the American people and their ability to save and expressed that she and the Administration 

looks forward to a continued partnership with the Department of the Treasury on this project. Commissioner 

Colvin shared information about the multitude of online services the Administration offers, including my Social

Security. The Commissioner explained that by signing up for a my Social Security account, users are able to 

better plan for a secure retirement or manage their benefits online if they are already benefit recipients. The 

Commissioner thanked everyone for their dedication to this critical cause.

Click here to learn more about the Administration’s “Someday Campaign”.

Presentation of myRA

Richard Ludlow, Executive Director of myRA, gave an overview of myRA product and the opportunity it offers 

for millions of American workers to save. He described the recent launch of myRA and some outreach to date.

Mr. Ludlow explained that myRA is designed as a starter product that provides many Americans with a savings 

option outside of the workplace. Mr. Ludlow shared some of the potential tax benefits of using myRA, as some 

of the features that users expressed are most useful to them. Mr. Ludlow shared ways the Commission can help 

spread the word about myRA, thanked the Commission for the work they have already done and stated that he 

looks forward to a continued partnership with the Commission. Mr. Ludlow answered several questions from 

the Commission. To learn more about myRA visit myRA.gov.
There were questions from the Commission following Mr. Ludlow’s presentation. The Commission noted that it 

would be useful to study outcomes from myRA if possible and suggested ways to integrate with payroll 

providers and into workplace orientations. Members of the Commission also inquired about the possibility to 

conduct research on myRA users. Director Cordray noted that myRA provides a unique opportunity and

challenged the Commission to figure out ways we can reach more people in all segments of the American

public.

Panel

Ms. Koide welcomed Lori Schock, Director of the Office of Investor Education and Advocacy of the U.S. 

Securities & Exchange Commission, to begin moderating the panel.

Panel: From Savings to Investing – What We Know and Where We Can Go

Moderated by: Lori J. Schock, Director, Office of Investor Education and Advocacy, United States Securities & 

Exchange Commission

Panelist:

Lori Schock introduced the panel.

Leandro Carvalho, Professor of Economics, Pardee RAND Graduate School, University of Southern California, 

shared a summary of research conducted by him and some of his colleagues on behalf of the Social Security 

Administration and other funders. Dr. Carvalho gave a summary of research based on the Financial 

Management Survey conducted online by the Federal Reserve Board and the University of Southern 

California’s Understanding America Study to explore how the financial lives of Americans have changed with 

the recent economic recovery. A fifth of respondents in their 50s had planned for retirement in the past 3 years. 

In preparing for retirement, a quarter did not seek advice. 4 in 10 asked advice from a financial advisor. Among 

those with investments, half managed the investments themselves and 4 in 10 sought advice from a 

professional. The evidence suggests that respondents may be overconfident about their decision-making 

capabilities as they age. As a consequence, only half of the 70+ group had assigned a Power of Attorney.

Gary Mottola, Research Director, FINRA Investor Education Foundation, presented findings from a paper titled

A Snapshot of Investor Households in America. The paper, published by the FINRA Investor Education 

Foundation, shares that approximately 6 in 10 households in the United States own securities investments—

typically through taxable accounts, IRAs or employer-sponsored retirement plans. However, this figure drops to 

a little over 3 in 10 if only taxable investments are considered. Households that own taxable accounts are more 

likely to be older, affluent, college educated and white relative to households with only retirement accounts or 

households without investment accounts. They also have much higher levels of financial literacy and 

moderately higher risk-tolerance levels. Certain demographic groups are significantly under-represented among 

investor households, including blacks and Hispanics—although these differences narrow after controlling for 

factors such as income, education and age.

Will Tucker, Behavioral and Social Sciences Team, White House Office of Science and Technology Policy, 

shared a summary of the Servicemember TSP Enrollment pilot study. The Federal Government operates a 

workplace savings program called the Thrift Savings Plan (TSP) for all of its employees. While the Federal 

Government automatically enrolls its civilian employees in TSP, it does not automatically enroll 

Servicemembers, and military enrollment rates average roughly 42 percent. The study found that informational 

email campaigns are effective at prompting Servicemember enrollment in TSP, especially when designed based 

on behavioral insights. Lessons about which messages were most effective at motivating Servicemember action 

are being used to inform future outreach efforts that continue to support Servicemembers.
Ms. Schock opened the floor for discussion by engaging the panel with a number of questions. Ms. Schock also 

invited the FLEC to ask questions of the panelist. The Commission and the panel discussed the role of debt in 

retirement as well as the ability of individuals being able to handle financial shock. There was also a discussion 

of how individuals deal with various levels of risk tolerance. The Commission discussed myRA as a tool to 

address risk intolerance. The Commission discussed what interventions, if any, can be used to increase 

participation rates in saving for retirement.

Discussion

Ms. Koide informed members of the Commission that there were updates on each of the committees in their 

folders. Ms. Koide reminded everyone that the President’s Advisory Council ended last summer that she looks 

forward to the Commission’s work on the recommendations put forth by the Council. Ms. Koide invited the 

Commission to make announcements to meeting participants. Janneke Ratcliffe of the Consumer Financial 

Protection Bureau shared the members of the Commission could find a copy of the Bureau’s Financial Literacy 

Annual Report in their folders along with a report on the Bureau’s Youth Financial Education Curriculum 

Review Tool. Ms. Ratcliffe also shared that members of the Commission had been provided a brief on the new 

Social Security claiming age and retirement security tool.

Director Cordray shared that the Federal Deposit Insurance Corporation’s Money Smart Curriculum is now 

available in braille and large print.

Luke Reynolds of the FDIC shared that the Money Smart Curriculum for adults is now available in braille and 

large print. Mr. Reynolds also shared the FDIC and the Small Business Administration recently released a 

Spanish translation of the Expanding Money Smart for Small Business curriculum.

Concluding Remarks

Ms. Koide thanked the participants for attending the meeting and shared that the next public meeting of the 

Commission will be held in early February, 2016.