Illinois Administrative Code › Title 23 - EDUCATION AND CULTURAL RESOURCES › Part 2500 - COLLEGE SAVINGS POOL › Section 2500.20 - Definition of Terms

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions shall apply to this Part:
"Act": Section 16.5 of the State Treasurer Act [15 ILCS 505 ]
				that establishes the College Savings Pool.
"Account": An individual investment account established and
				maintained in the College Savings Pool.
"Account Owner": Any person or entity who has opened an
				account or to whom ownership of an account has been transferred, as allowed by
				the Code, and who has authority to withdraw funds, direct withdrawal of funds,
				change the designated beneficiary, or otherwise exercise control over an
				account in the College Savings Pool.
"Administrative Fees, Costs, and Expenses": Any fees, costs,
				and expenses, including investment fees and expenses, to cover the costs of
				administration, recordkeeping, and investment management, and payments to third
				parties, related to the Pool.
"Applicant": Any person who has applied or who is in the
				process of applying to open an account in the Pool.
"Code": The Internal Revenue Code of 1986, as amended
				(26
				USC 1 et seq.).
"College Savings Pool" or "Pool": The College Savings Pool
				authorized to be established by the Treasurer under the Act and operated in
				accordance with section 529 of the Code, which may consist of one or more
				programs.
"College Savings Program" or "Program": An Illinois qualified
				tuition program established under the Pool and operated in accordance with
				section 529 of the Code.
"Contributions": Contributions made to an account by a
				donor.
"Designated Beneficiary": Any individual designated as
				the beneficiary of an account in the Pool by an account owner. A designated
				beneficiary must have a valid social security number or taxpayer identification
				number. In the case of an account established as part of a scholarship program
				permitted under section 529 of the Code, the designated beneficiary is any
				individual receiving benefits accumulated in the account as a
				scholarship.
"Donor": Any person or entity who makes a contribution
				to an account in the Pool.
"Earnings": The aggregate total of all dividends and interest
				income received by the Pool. The aggregate total of dividends and interest
				income shall be reduced by the aggregate total of administrative fees, costs,
				and expenses paid out of the Pool prior to calculating earnings. Earnings shall
				be determined without regard to realized or unrealized capital gains and losses
				incurred by the Pool.
"Eligible Educational Institutions": Public and private
				colleges, junior colleges, graduate schools, and certain vocational
				institutions that are described in section 1001 of the Higher Education
				Resource and Student Assistance Chapter of Title 20 of the United States Code
				(20 U.S.C.
				1001) and that are eligible to participate in
				Department of Education student aid programs.
"Investment Options": The underlying funds and investment
				portfolios available to account owners within a program.
"Investment Policy ": The Investment Policy Statement adopted
				by the Treasurer pursuant to the Act, which sets forth the policies,
				objectives, and guidelines that govern the investment of moneys in the
				programs.
"Investment Selection": Refers to the process of choosing the
				underlying investment funds, as well as the investment portfolios, by
				participants.
" Participating Financial Institution": Any financial
				institution lawfully doing business in the State of Illinois that has executed
				a participation agreement with the Treasurer or their agent, for the purposes
				of promoting a college savings program in the Pool.
"Program Disclosure Statement": The document distributed to
				applicants and account owners describing the program. The Program Disclosure
				Statement shall include, without limitation and unless contained in the
				application for enrollment, the information required by the Act and otherwise
				required under applicable federal and Illinois laws.
"Program Manager": Any financial institution or entity lawfully
				doing business in the State of Illinois selected by the Treasurer to oversee
				the recordkeeping, custody, customer service, investment management, and
				marketing for one or more of the programs in the College Savings Pool.
"Qualified Expenses":
Tuition, fees, and the costs of books, supplies, and
				equipment required for enrollment or attendance at an eligible educational
				institution;
Expenses for special needs services, in the case of a
				special needs beneficiary, which are incurred in connection with such
				enrollment or attendance;
Certain expenses, to the extent they qualify as
				qualified higher education expenses under Section 529 of the Code, for the
				purchase of computer or peripheral equipment or Internet access and related
				services, if
that
equipment, software, or services are to be
				used primarily by the beneficiary during any of the years the beneficiary is
				enrolled at an eligible educational institution, except that,
these
expenses shall not include expenses for computer software designed for
				sports, games, or hobbies, unless the software is predominantly educational in
				nature;
Room and board expenses incurred while attending an
				eligible educational institution at least half-time. A student shall be
				considered to be enrolled at least half-time if the student is enrolled for at
				least half the full-time academic workload for the course of study the student
				is pursuing, as determined under the standards of the institution at which the
				student is enrolled
;
Expenses for fees, books, supplies, and equipment
				required for the participation of a designated beneficiary in an apprenticeship
				program registered and certified with the Secretary of Labor under the National
				Apprenticeship Act (29 U.S.C.
				50) ; and
Amounts paid as principal or interest on any qualified
				education loan of the designated beneficiary or a sibling of the designated
				beneficiary, as allowed under section 529 of the Code.
[15 ILCS
				505/16.5(a) ]
"Third-party Service Provider" means a subcontractor of the
				Program Manager for the exclusive purpose of distributing the Bright Directions
				advisor-sold plan.
"Treasurer": The duly elected Treasurer of the State of
				Illinois or their designee or designees.