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Board authorized to revise program to meet actuarial requirements, Sec. 16-33C-23 added; Secs. 16-33C-17, 16-33C-19 repealed; Secs. 16-33C-16, 16-33C-20 am'd

Summary

SB452 would empower the PACT Board to address the program's actuarial deficit, repeal certain limits, and set funding steps to move toward full actuarial funding.

What This Bill Does

If enacted, the bill repeals a 2010 provision that blocked certain settlements with PACT purchasers, and gives the PACT Board authority to resolve the actuarial deficit with purchasers and beneficiaries. It adds a new section encouraging and enabling such resolutions. It amends funding rules to specify annual appropriations (2016-2019) aimed at making the program 100% funded, and allows the Board to certify that no future appropriations are necessary if an actuary says the program is fully funded. It also repeals two related provisions and becomes effective immediately after the governor signs it.

Who It Affects

• PACT Board of Directors — gains authority to develop and implement financially viable resolutions to address the program's funding shortfall.
• PACT purchasers and beneficiaries — potential changes to benefits or terms as part of a resolution to the actuarial deficit.

Key Provisions

• Amends Sections 16-33C-16 and 16-33C-20 to set specific annual appropriations (2016: $10,000,000; 2017: $20,000,000; 2018: $20,000,000; 2019: $13,000,000) to make the PACT Program 100% funded as determined by the program's actuary.
• Adds Section 16-33C-23 authorizing and encouraging the PACT Board to pursue a financially viable resolution with PACT purchasers and beneficiaries to address the actuarial deficit and granting the Board the powers to implement such a resolution.
• Repeals Sections 16-33C-17 and 16-33C-19, removing prior constraints related to certain settlements or actions tied to funding.
• Section 1 also provides the funding structure and the goal of full funding as certified by an actuary, with the Board able to certify no future appropriations are necessary if appropriate.
• Section 4 states the act becomes effective immediately after governor’s approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prepaid Affordable College Tuition (PACT) Program