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164A.330 Participation agreements for savings plan trust -- Confidentiality of
information.
The savings plan trust shall have the authority to enter into participation agreements
with participants on behalf of beneficiaries pursuant to the following terms and
agreements:
(1) Each participation agreement shall require a participant to agree to invest a
specific amount of money in the trust for a specific period of time for the benefit
of a specific beneficiary. Participation agreements may be amended to provide
for adjusted levels of contributions based upon changed circumstances or
changes in educational plans and may contain penalties for failure to make
contributions when scheduled;
(2) Notwithstanding the provisions of subsection (1) of this section, participants
may elect to enter into a lump-sum contribution participation agreement in
connection with which a single, lump-sum contribution is made by the
participant for the benefit of a beneficiary;
(3) Execution of a participation agreement by the trust shall not guarantee in any
way that higher education costs will be equal to projections and estimates
provided by the trust or that the beneficiary named in any participation
agreement will:
(a) Be admitted to an institution of higher education;
(b) If admitted, be determined a resident for tuition purposes by the institution
of higher education, unless the participation agreement is vested;
(c) Be allowed to continue attendance at the institution of higher education
following admission; or
(d) Graduate from the institution of higher education;
(4) Beneficiaries may be changed as permitted by the rules and regulations of the
board upon written request of the participant provided, however, that the
substitute beneficiary shall be eligible;
(5) Participation agreements shall be freely amended throughout their terms in
order to enable participants to increase or decrease the level of participation,
change the designation of beneficiaries, and carry out similar matters;
(6) Each participation agreement shall provide that for vested participation
agreements, the beneficiary shall be considered a resident of the
Commonwealth for tuition purposes if the beneficiary enrolls in an institution of
higher education in Kentucky;
(7) Each participation agreement shall provide that it may be canceled under the
terms and conditions, including payment of the fees and costs, set forth in the
rules and regulations promulgated by the board;
(8) The participation agreement shall ensure that contributions made pursuant to
subsections (1) and (2) of this section shall not be made in real or personal
property other than cash and shall not exceed the anticipated higher education
costs of the beneficiary;
(9) The participation agreement shall provide that the participant and the
beneficiary shall not directly or indirectly or otherwise control the investment of
contributions or earnings on contributions;
(10) Information obtained from a participant or a beneficiary and other personally
identifiable records made by the trust in the administration of this chapter shall
not be published or be open for public inspection pursuant to KRS 61.870 to
61.884, except as provided below:
(a) Upon written request, a participant or beneficiary or his legal
representative shall be entitled to be advised of the aggregate balance of
contributions and earnings for all participation agreements that designate
that same beneficiary;
(b) Information may be made available to public employees in the
performance of their duties, but the agency receiving the information shall
assure the confidentiality, as provided for in this section, of all information
so released;
(c) Statistical information derived from information and records obtained or
made by the trust may be published, if it in no way reveals the identity of
any participant or beneficiary; and
(d) Nothing in this section shall preclude the program administrator or any
employee of the board from testifying or introducing as evidence
information or records obtained or made by the trust in any proceeding
under this chapter, in an action to which the trust is a party, or upon order
of a court.
Effective:July 14, 2000
History: Amended 2000 Ky. Acts ch. 382, sec. 5, effective July 14, 2000. -Amended 1998 Ky. Acts ch. 132, sec. 4, effective March 26, 1998. -- Amended
1996 Ky. Acts ch. 11, sec. 2, effective July 15, 1996. -- Amended 1992 Ky. Acts
ch. 190, sec. 7, effective July 14, 1992. -- Created 1988 Ky. Acts ch. 88, sec. 7,
effective July 15, 1988.
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