The NextGen College Investing Plan is Maines

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Welcome
NextGen College Investing Plan Maine College
Savings Program

• The NextGen College Investing Plan is Maines
• Section 529 plan, administered by the
• Finance Authority of Maine with investment
  oversight provided by the Maine State Treasurer.
  
• Merrill Lynch is the Program Manager.
• The Advisory Committee on College Savings is
  chaired by Maine State Treasurer David Lemoine
  and provides advice to FAME on the operation of
  the Program and investment of the Program Fund.

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NextGen Plan . . .
The NextGen Advantage

• NextGens Client Direct Series
• for self-directed investors - available through
  FAME, the web and Maine-based banks
• 9 investment options
• NextGens Client Select Series
• for investors who seek professional advice -
  available through Maine-based brokers and Merrill
  Lynch Financial Advisors
• 27 investment options

NextGen Portfolios include funds from Franklin
Templeton, MFS, Merrill Lynch Investment
Management (MLIM), and OppenheimerFund. Both
series include a principal protected option.
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NextGen Benefits Maine . . .
The NextGen Advantage

• Offered through Maine-based financial advisors
  and financial institutions
• A percentage of the cash portion of the NextGen
  Funds is invested in the CDs of Maine financial
  institutions to help grow the Maine economy
• Annual account fee waived for Maine Accounts
• Maine taxpayers can direct deposit tax refunds
  into a NextGen Account
• Maine Administration Fee
• NextGen Account Grant Programs and NextGen Fee
  Rebate Program available for eligible Maine
  Accounts

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The Maine Factor . . .

• MAINE ACCOUNT
• Maine NextGen Account means any NextGen Account
  opened by a Participant who is a resident of
  Maine or for a Beneficiary who is a resident of
  Maine.

MAINE ADMINISTRATION FEE The Finance Authority
of Maine receives 15 basis points (0.15 of one
percent) annually on the net asset value of all
investments in the NextGen College Investing
Plan.This income is mandated, through Maine
legislation, to cover program administrative
costs and then is to be used for further program
purposes.
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Fee Rebate Program
On January 31, 2006 FAME electronically
transmitted fee rebates to 5,462 Maine NextGen
Accounts for a total of 104,147.45.
How it Works If either the NextGen Participant
or the Designated Beneficiary is a Maine
resident, and an amount approximately equal to
the annual Maine Administration Fee (15 basis
points or 0.15 of one percent of the Net Asset
Value of the account) paid during 2004 will be
automatically rebated back to the NextGen Account
in January of 2004. Only NextGen Accounts with an
account value of 1,000 or more at the end of the
calendar year are eligible to receive a fee
rebate or waiver.Result An account with a
5,000 NAV throughout the calendar year could
receive a fee rebate of 7.50.
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Matching Grant Program
Launch Date January 1, 2002
NextGen Initial Matching Grant Eligible Maine
residents who open a NextGen Account with a
minimum investment of just 50, can receive a
one-time 200 Initial Matching Grant. NextGen
Annual Matching Grant Eligible Maine Accounts
can receive a 50 match of additional
contributions up to 200 Annual Matching Grant.
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Matching Grant Program Eligibility Criteria

• Who is Eligible?
• The NextGen account owners family adjusted gross
  income was 54,500 or less (adjusted annually),
  as reported on the familys previous years
  (2005) federal income tax return and
• Either the NextGen Participant or NextGen
  Beneficiary is a Maine resident and
• Only one matching grant per beneficiary per year.

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Matching Grant Program Eligibility Criteria

• Other Considerations
• Income eligibility determined through
  self-certification.
• Initial Matching Grant Certification must be
  received by FAME within twelve months from the
  date the NextGen Account is opened.
• Annual Matching Grant Certification must be
  received by December 31st. Annual Matching Grant
  awards based on previous years contributions
• Initial grant funds must be held 12 months
  Annual grants can be used anytime.
• Grant funds invested in Grant Portfolio owned by
  FAME. Account owner must certify to the
  qualified use of funds.
• FAME audits income eligibility through Maine
  Revenue Service.

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Matching Grant Awards by Maine Counties
30 of Maines population occupies 70 of the
state.
As of 3/31/06
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Matching Grant Program Case Study
Center for Social Development at Washington
University in St. Louis, Missouri conducted a
case study of the NextGen Matching Grant Program

350 surveyed 137 responded (39) 10 personal
interviews

• The Survey asked 3 primary research questions
• Who is saving in NextGen?
• What factors led to account opening?
• What factors are associated with successful
  savings?

Download a copy of the NextGen Matching Grant
Case Study at www.gwbweb.wustl.edu/csd
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Matching Grant Program Case Study

• Findings
• 83 of respondees indicated that the Matching
  Grant Program was an important factor in their
  decision to open a NextGen account.
• 75 of respondees had not saved in anyway for
  college prior to enrolling in NextGen.
• 80 of respondees are active savers (not one-time
  depositors).
• the results affirm that matching grant
  receipt is associated with additional savings.

The Case Study concluded The grants attached
them to NextGen, helped them feel like they were
making savings progress, or kept them saving when
they otherwise might have stopped. In addition,
the match limit (200 in 2005) created a savings
expectation from some account owners, who viewed
the limit in terms of how much they must save to
receive the maximum award.
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First Steps Grant Program
Launch Date January 15, 2006 A NextGen Account
opened for the benefit of a Maine resident child
born on or after January 1, 2006 is eligible to
receive a onetime grant of 50. Eligible
account owners may use the 50 First Steps Grant
as the initial contribution to receive an Initial
Matching Grant.
NextGen First Step Account Scholarship! FAME will
award 1,000 to a baby who received a First Step
Grant in 2006.
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First Step Grant Eligibility Criteria

• Other Considerations
• Only one First Step Grant per NextGen
  Beneficiary.
• NextGen Account needs to be opened and First Step
  Grant claimed before the Beneficiarys first
  birthday.
• To claim a 50 First Step Grant open a NextGen
  Account with an initial contribution of 200 or
  0 initial contribution if the account owner
  elects automated contributions.
• Eligible account owners can use the 50 First
  Step Grant to open the NextGen Account and
  receive a 200 Initial Matching Grant. No other
  contribution is required to open the Account.
• First Step Grant funds invested in Grant
  Portfolio owned by FAME. Account owner must
  certify to the qualified use of funds.

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First Step Grant Marketing

• Announcement mailing to families of Maine
  resident newborns
• First Step Grant television and radio spots
• Annual First Step Account Scholarship awarded in
  January

As of May 10, 2006 FAME mailed 3,068 First Steps
announcements. 7.4 have requested enrollment
materials.
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Maine LiLA Program Lifelong Learning Accounts
Launch Date January 1, 2006 The Maine
Department of Labor in partnership with the
Finance Authority of Maine established the first
state-wide LiLA Program in the country, promoting
employer matched individual NextGen Accounts to
finance lifelong learning so that Maine workers
can upgrade their skills and education while
meeting the demands of businesses for a skilled
workforce.
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Key Characteristics of LiLA

• Maines 529 plan is the investment vehicle
• Sponsored by Employer
• Employer Matched
• Portable Employee Owned
• Career Education Advising
• Financial Advising
• NextGen Matching Grants available to eligible
  employee

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NextGen Scholarship Programs

• 1 million for the NextGen Access Scholarship
  Program, which provides scholarships to Maines
  neediest nontraditional student-beneficiaries
  attending institutions of higher education, who
  do not qualify for the Maine State Grant Program.
  
• 2 million for the NextGen Grant Program, which
  provide NextGen scholarships to Maine
  undergraduate students who expected family
  contribution exceeds the maximum Pell Grant
  eligibility criteria.
• BRAC Scholarships will provide financial
  assistance to those affected by the closing of
  the Brunswick Naval Air Station

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Other NextGen Sponsorships

• College Goal Sunday Account Awards
• SAVER Program TRIO Upward Bound Pilot
• Money Matters NextGen Account Scholarships
• NextGen Field of Dreams Scholarships - sponsored
  through the Portland Sea Dogs and FAME
• WGME Growing Maine Scholars NextGen Awards

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Tax Deduction on 529 Contributions

• Effective January 1, 2007
• A 250 tax deduction is now available for Maine
  taxpayers who make contributions to a 529 plan.
• 250 per designated beneficiary
• Only availabe to taxpayers with incomes of
  100,000 or less if a single filer and 200,000
  or less for returns married joint filers or heads
  of household.
• First tax deduction in the country that allows
  tax deductions for contributions to any 529 plan
  not just the state sponsored plan.

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Communication

• Web Accessible!
• NextGen Online System for Maine Distribution
  Agents
• FAME NextGen Web Site
• Education!
• Periodic updates to Account Owners and
  stakeholder
• Community Outreach and Seminars
• Branding and Marketing!
• Media Outreach and Direct Mailing Campaigns,
  Customized Brochures (electronic, labeled),
• Easy and Affordable!
• Contribution coupons, payroll deduction, etc.

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Matching Grants available to eligible families.