Under existing law enacted in 2010, specified sums of money were appropriated over a period of years from the Educational Trust Fund to the Alabama Prepaid Affordable College Tuition (PACT) Program to make the program fully actuarially funded. Part of that law specifically encouraged the PACT Board to make financially beneficial changes to PACT rules, policies, and procedures as long as those rules did not violate the contractual relationship between a PACT purchaser and the PACT Board. The Alabama Supreme Court held that when it was subsequently determined the 2010 changes did not make the PACT Program fully actuarially funded, this provision prevented the PACT Board from entering into an agreement with PACT purchasers who were part of a class action against the board that would have given the purchaser the right to choose to have the benefits paid under the program at the 2010 level or have the amount they had contributed returned.
This bill would repeal that provision of the 2010 law and would also repeal related provisions and would give the PACT Board specific authority to resolve the actuarial deficit with PACT purchasers and beneficiaries.
Delivered to Governor at 10:52 a. m. on April 12, 2012.
Clerk of the House Certification
Assigned Act No. 2012-198.
Signature Requested
Enrolled
Passed Second House
Motion to Read a Third Time and Pass adopted Roll Call 562
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the Senate committee on Finance and Taxation Education
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 594
Motion to Adopt adopted Roll Call 593
Love motion to Table adopted Roll Call 592
Ford Substitute to Substitute Offered
Ways and Means Education first Substitute Offered
Third Reading Passed
Read for the second time and placed on the calendar with 1 substitute and
Read for the first time and referred to the House of Representatives committee on Ways and Means Education
Source: Alabama Legislature