Senator Collins Applauds Launch of ABLE Benefit Accounts for Mainers with Disabilities
Washington, D.C. – U.S. Senator Susan Collins applauded Bangor Savings Bank’s launch of the Maine ABLE Benefit CheckingSM account, which is the first account of its kind in the nation to be administered by a bank. The account will ensure people living with disabilities have greater access to financial products and services, while protecting eligibility for federal and state means-tested benefits. Senator Collins was a co-sponsor of the Achieving a Better Life Experience (ABLE) Act, signed into law in 2014, that created these savings accounts for individuals with disabilities.
“Far too often, Mainers living with disabilities are faced with barriers to economic security. Being able to save money to make necessary modifications to a car, or a home, or just to pay for unexpected life events, is key to independence and security,” said Senator Collins. “ABLE Savings Accounts empower individuals with disabilities to plan and save for their future without risking the loss of federal and state benefits. They also give parents added peace of mind that their children’s futures will be secure as they enter their own retirement years. I welcome this exciting and unique partnership between the State of Maine and Bangor Savings Bank, which will provide Mainers with disabilities access to their accounts online and at local branches.”
“As a community bank, we have a unique opportunity and responsibility to identify and create more equitable access to financial resources for our customers and communities. As a result, we can better help our customers’ achieve economic empowerment and mobility, said Bob Montgomery-Rice, President and CEO of Bangor Savings Bank. “Maine ABLE Benefit CheckingSM is a nationally first-of-its-kind account that assists Maine’s people with disabilities in managing their daily qualified disability expenses with ease and freedom, without impact to other essential benefits and services. We are grateful for the vision and support of Senator Collins in co-sponsoring the ABLE Act, and for our subsequent collaboration with the State of Maine Office of the State Treasurer to make this important program available for Maine residents.”
Americans with disabilities have half the rate of workforce participation as the general population despite more than 70 percent wishing to work. They are also twice as likely to be living in poverty compared to the general population. The average annual income for a worker with a disability is one-third less than a worker without a disability.
Federal law caps the assets of a single person with disabilities who receives Supplemental Security Income, better known as SSI, at just $2,000. The ABLE Act allowed for the creation of created ABLE Programs, which are established and managed at the state level. They allow individuals with a disability diagnosis by age 26, and their families, to establish tax-advantaged savings accounts. Similar to the 529 college savings plans, these savings accounts can be used to set aside contributions not to exceed $15,000 a year to cover qualified expenses such as education, housing, and transportation.
In partnership with the Office of the Maine State Treasurer, which oversees and maintains the program locally, Bangor Savings Bank serves as the administrator of the ABLE ME program. A Maine ABLE Benefit CheckingSM account can be opened at any Bangor Savings Bank branch and is available to qualifying Maine residents.
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Senator Collins has been a longstanding champion for improving financial security for individuals with disabilities. In 2018, she chaired an Aging Committee hearing to examine the significant barriers that people with disabilities face to economic health and employment. In particular, she highlighted ABLE Accounts as a mechanism for individuals with disabilities to save and continue to receive Social Security Insurance benefits.
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