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May 9, 2018

Alabama PACT Board of Directors Approves Fourth Increase Benefit Payments

 

FOR IMMEDIATE RELEASE

MAY 9, 2018

Contact:  Glenda Allred, Treasurer’s Office

Phone (334) 242-7523

Email:  glenda.allred@treasury.alabama.gov

 

MONTGOMERY – State Treasurer and PACT Board Chair Young Boozer announced that directors of the Alabama PACT (Prepaid Affordable College Tuition) Program approved a 7.0% increase to the current rate paid by the PACT Program for tuition and fees.  This increase is effective fall semester 2018.

Under the Class Action Settlement Agreement, beginning Summer 2013, PACT was required to pay tuition and qualified fees at the fall 2010 rates as certified by each respective Alabama public eligible educational institution.  The agreement was negotiated to allow for an increase in benefit payments, if the actuarial condition of the PACT program improves.  The first increase of 3.0% was made in 2015 followed by a 6.0% increase in 2016 and an 8.0% increase in 2017.

“The settlement agreement was designed to stabilize a financially struggling program to preserve substantial value and to protect the program with a long-term financial plan given the fiscal constraints on the program,” said Treasurer Boozer.  “We are proud to be able to provide the fourth consecutive increase in benefit payments.”

The PACT Program currently has 17,720 active contracts.

 

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