Kentucky Administrative Regulations › Title 11 - KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY › Chapter 12 - Kentucky Educational Savings Plan Trust › Section 11 KAR 12:010 - Definitions for 11 KAR Chapter 12

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS 164A.300-164A.380
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				164A.325(9) authorizes the
				board to promulgate administrative regulations to implement the Kentucky
				Educational Savings Plan Trust. This administrative regulation establishes the
				definitions for 11 KAR Chapter 12.
Section
			 1. Definitions.
(1) "Academic
			 period" means one (1) semester or one (1) quarter or an equivalent period for a
			 vocational technical institution.
(2) "Account" means the account in the
			 program fund established and maintained under the trust for a
			 beneficiary.
(3) "Account balance"
			 means the fair market value of an account as of the accounting date.
(4) "Accounting date" means the date, not
			 later than the last business day of each quarter as determined by the program
			 administrator.
(5) "Administrative
			 fund" is defined in
			 KRS
			 164A.305(2).
(6) "Beneficiary" is defined in
			 KRS
			 164A.305(3).
(7) "Benefits" is defined in
			 KRS
			 164A.305(4).
(8) "Board" is defined by
			 KRS
			 164A.305(5).
(9) "Dependent person" means a person who is
			 unable to meet the criteria for an independent person as defined in subsection
			 (14) of this section.
(10)
			 "Designated date" means the date on which each beneficiary is eligible to be
			 designated in a participation agreement.
(11) "Domicile" or "legal residence" means a
			 person's true, fixed, and permanent home and is the place where the person
			 intends to remain, and to which the person expects to return if absent without
			 intending to establish a new domicile elsewhere.
(12) "Effective date" means the date which a
			 participant may enter into a participation agreement with the trust, which is
			 on or after July 1, 1989.
(13)
			 "Higher education costs" is defined by
			 KRS
			 164A.305(6).
(14) "Independent" means a person:
(a) Who has not been claimed by his parent as
			 a dependent on a federal or state income tax return for the tax year preceding
			 the date of application for reclassification of residency status;
(b) Who demonstrates no financial dependence
			 upon a parent; and
(c) Whose
			 parent's income is not taken into account by a private or governmental agency
			 furnishing educational financial assistance to the person, including a
			 scholarship, loan, or other assistance.
(15) "Institution of higher education" is
			 defined in
			 KRS
			 164A.305(7).
(16) "Notice to authorize payroll deduction"
			 means the participant's written instruction to the participant's employer to
			 deduct payments from the participant's earnings and forward that amount to the
			 trust.
(17) "Notice to increase or
			 decrease payments under participation agreement" means the participant's
			 written instruction to the program administrator of the trust to increase or
			 decrease payments under a participation agreement.
(18) "Notice to preauthorize debit" means the
			 participant's written instruction to the participant's financial institution to
			 debit or charge the participant's checking or savings account for payments due
			 under the participation agreement.
(19) "Notice to substitute beneficiary" means
			 the participant's written instruction to the program administrator of the trust
			 to substitute a beneficiary.
(20)
			 "Notice to terminate the participation agreement" means the participant's
			 written instruction to the program administrator of the trust to terminate a
			 participation agreement under the trust.
(21) "Notice to use trust benefits" means the
			 participant's written instruction to the program administrator of the trust to
			 notify the trust of the date benefits are to begin and level of benefits
			 paid.
(22) "Parent" means one (1)
			 of the following:
(a) A person's father or
			 mother; or
(b) A court-appointed
			 legal guardian if the guardianship was not established primarily to confer
			 Kentucky residency on the person.
(23) "Participant" is defined in
			 KRS
			 164A.305(9).
(24) "Participation agreement" is defined in
			 KRS
			 164.305(10).
(25) "Payments" means the money paid by the
			 participant to the trust under the participation agreement.
(26) "Program administrator" is defined in
			 KRS
			 164A.305(11).
(27) "Program fund" is defined in
			 KRS
			 164A.305(12).
(28) "Property settlement agreement" or
			 "decree of dissolution by the court" means the agreement or judgment approved
			 or entered by a court of competent jurisdiction which sets forth the
			 participant's right, if any, to the participant's interest in the participation
			 agreement.
(29) "Trust year" means
			 the fiscal year beginning July 1 and ending the following June 30 of each year
			 for purposes of the calculation of benefits.
(30) "Vested participation agreement" is
			 defined in
			 KRS
			 164A.305(14).