Alabama PACT Board of Directors Approves Increase for Benefit Payments
MONTGOMERY – State Treasurer and PACT Board Chair Young Boozer announced that directors of the Alabama PACT (Prepaid Affordable College Tuition) Program approved a 6.0% increase to the current rate paid by the PACT Program for tuition and fees. This increase is effective fall semester 2016.
Under the 2011 Class Action Settlement Agreement, PACT is 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 August 2015.
“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 second increase in benefit payments.”
The PACT Program currently has 23,079 active contracts.
For more information, please contact Glenda Allred via email or at (334) 242-7523.
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