MONTGOMERY, Ala. (PR) -- Alabama State Treasurer and PACT Board Chairman John McMillan announced that directors of the Alabama PACT (Prepaid Affordable College Tuition) Program approved a 7% increase to the current rate paid by the PACT Program for tuition and fees. This increase is effective fall semester 2020.
“Through the sound financial management of the fund, we are able to provide the sixth consecutive increase to our account holders” said Treasurer McMillan. “The leadership and vision of the board has transformed the PACT program.”
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 2015 followed by a 6.0% increase in 2016, an 8.0% increase in 2017, a 7% increase in 2018, and a 7% increase in 2019.
The PACT Program currently has 12,621 active contracts.