SB452 Alabama 2012 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2012

Title

Prepaid Affordable College Tuition (PACT) Program, PACT Board authorized to revise program to meet actuarial requirements, Sec. 16-33C-23 added; Secs. 16-33C-17, 16-33C-19 repealed; Secs. 16-33C-16, 16-33C-20 am'd

Description

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.

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Subjects

Prepaid Affordable College Tuition (PACT) Program