2018 Kentucky Revised Statutes CHAPTER 164A - HIGHER EDUCATION FINANCE .709 Termination of prepaid tuition contract or account -- Transfer of funds -- Operations of Commonwealth postsecondary education prepaid tuition trust fund and the Tuition Account Program Office to end on June 30, 2028.
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164A.709 Termination of prepaid tuition contract or account -- Transfer of funds - Operations of Commonwealth postsecondary education prepaid tuition trust
fund and the Tuition Account Program Office to end on June 30, 2028.
(1)
(2)
(3)
(4)
(5)
(6)
A purchaser may terminate a prepaid tuition contract at any time upon written
request to the office.
Upon termination of a prepaid tuition contract at the request of a purchaser, the
office shall pay from the fund to the purchaser:
(a) The value of the prepaid tuition account or, if the contract has not been paid in
full, a pro rata amount calculated according to the portion of the plan that had
been paid, if the contract is terminated for the death of the qualified
beneficiary or the disability of the qualified beneficiary that, in the opinion of
the office, would make attendance by the beneficiary at an eligible educational
institution impossible or unreasonably burdensome;
(b) The amounts paid on the purchaser's prepaid tuition contract if the contract is
terminated and a request for refund is made before July 1 of the qualified
beneficiary's projected college entrance year. The board may determine a rate
of interest to accrue for payment on the amount otherwise payable under this
paragraph;
(c) The value of the prepaid tuition account for the 2014-2015 academic year for
accounts with a utilization period end date prior to 2012; or
(d) The value of the prepaid tuition account at the end of the account's utilization
period plus three percent (3%) per annum for a maximum of two (2) years
thereafter, or the applicable tuition plan value increase, whichever is less, for
accounts with a utilization period end date of 2012 or later.
All refunds paid shall be less any benefits previously paid from the plan and any
administrative fees as determined by the board. The office may impose a fee upon
termination of the account for administrative costs and deduct the fee from the
amount otherwise payable under this section.
If a qualified beneficiary is awarded a scholarship that covers tuition costs included
in a prepaid tuition contract, the purchaser may request a refund consisting of the
amount of the value of the prepaid tuition account, not to exceed the amount of the
scholarship.
If the purchaser wishes to transfer funds from the prepaid tuition account to the
Kentucky Educational Savings Plan Trust, the purchaser may do so under
administrative regulations promulgated by the board and the board of directors of
the Kentucky Educational Savings Plan Trust under KRS 164A.325. The transfer
amount shall be calculated in the same way a refund is determined in accordance
with this section.
If the purchaser wishes to transfer funds from the prepaid tuition account to another
qualified tuition program as defined in 26 U.S.C. sec. 529(b)(1), the purchaser may
do so under administrative regulations promulgated by the board. The transfer
amount shall be calculated in the same way a refund is determined in accordance
with this section.
(7)
(8)
The board may terminate a prepaid tuition contract at any time due to the fraud or
misrepresentation of a purchaser or qualified beneficiary with respect to the prepaid
tuition contract.
All operations of the Commonwealth postsecondary education prepaid tuition trust
fund and the Tuition Account Program Office shall end on June 30, 2028. On or
before that date, any remaining prepaid tuition account funds that have not been
utilized, transferred to another qualified tuition program, or refunded upon the
request of the purchaser shall be refunded to the purchaser in accordance with
subsection (2) of this section.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 34, sec. 4, effective July 15, 2014. -- Amended
2006 Ky. Acts ch. 252, Pt. XXXI, sec. 7, effective April 25, 2006. -- Amended 2005
Ky. Acts ch. 162, sec. 8, effective July 1, 2005. -- Amended 2002 Ky. Acts ch. 25,
sec. 7, effective July 15, 2002. -- Created 2000 Ky. Acts ch. 163, sec. 7, effective
July 14, 2000.
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