State of Indiana CollegeChoice 529 Plan

1
State of Indiana CollegeChoice 529 Plan
Indiana Credit Unions

• September 10, 2009

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Collaboration on 529 Plans

• Goal
• Provide members with a credit union investment
  option to save for college with the state tax
  benefit
• Offer an attractive credit union CD option with
  great rates and low administrative costs

3
Economic Climate

• Perfect timing as many consumers are looking for
  a government-backed Insured alternative for
  college savings
• A conservative offer for those who are
  risk-averse no principal at risk

4
Flow Chart of the Funds
New Option

Credit Union Insured CD
Primary Financial
529 Investor
International Portfolio
Dodge Cox Fund
Bond Portfolio
Frontegra
Current Options
Upromise, Inc
Inflation-protected Portfolio
Western Asset
Dependent upon investor risk selection.
Money Market
Vanguard
Short Term Bond
US Equity
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Hoosiers Benefit

• Indiana Credit Unions Represent a total of 2.2
  million Hoosiers
• Parents are looking for a risk-free option for
  college savingsas 401(k) and retirement funds
  have eroded up to 30 of value
• Market conditions have created a new demand
• Credit Union Certificates would meet this new
  demand

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Success Story

• Wisconsin partnership between credit unions and
  the state has resulted in a total investment of
  13.76 million in Bank and Credit Union CDs
  within 6 month Period
• Easy implementation of CD option for Indiana

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Partnership Part I

• Met with Richard Mourdock, Indiana State
  Treasurer and Jodi Golden, Executive Director of
  the Indiana Education Savings Authority on June
  9th Mike Lee (Members United), Chris Beaumont
  (ICUL), Joe Hasto (Ignite)
• As not-for-profit organizations, credit unions
  are aligned philosophically with the State to
  promote the financial well-being of Hoosiers
• There are over 200 credit unions located in
  Indiana, we can partner with the State of Indiana
  to get more consumers involved
• The State is looking to have a solution in place
  in 12-14 months

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Partnership Part II

• Met with Richard Mourdock, Indiana State
  Treasurer and Jodi Golden, Executive Director of
  the Indiana Education Savings Authority on August
  24th - Mike Lee (Members United), Chris Lewis
  (Primary Financial), Joe Hasto (Ignite)
• Reviewed program in greater depth
• Underscored the Credit Union difference
• Asked for a meeting with UPromise

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Credit Union Opportunity

• Cooperation between Indiana Credit Unions
• Need support from all of our Credit Union
  partners
• Are you willing to hold 250,000 of 529 Plan
  Deposits?
• Opportunity for Credit Unions to collaborate
• Low-risk financial investment
• Notoriety for the credit union philosophy
• Bank failures widely publicized opportunity for
  CUs
• Political Play this allows CUs to work with the
  State and perhaps partner with the State on other
  initiatives

10
Next Steps Team Vision

• Reality This is a long sales-cycle
• Stay in front of the people at the State Capitol
• Marketing
• Develop marketing plan to drive participation
• Additional information on www.ignitecu.org

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Questions?
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Contact Information Team Vision

• Debby Blake
• Electronic Services Manager
• Finance Center Federal Credit Union
• dblake_at_fcfcu.com
• 317-916-6152
• Lora Davison
• Chief Financial Officer
• Northern Indiana Federal Credit Union
• lora_at_nifedcu.org
• 219-942-3377
• Joe Hasto
• Chief Financial Officer
• Eli Lilly Federal Credit Union
• jhasto_at_elfcu.org
• 317-276-7043