Mississippi Administrative Code › Title 38 - Treasurer › Part 2 - Mississippi Prepaid Affordable College Tuition Program (Legacy Contracts) › Chapter 6 - Definitions › Rule 38-2-6.1

Current through June 25, 2024
In these Rules, Regulations and Procedures of the MPACT
				  Program, the following terms shall be defined as follows:
A. "Academic School Year" means three quarters or two
				  semesters of a twelve month school year.
B. "Actuarial Assessment" means an additional Contract amount
				  assessed by the State Treasurer to preserve the actuarial soundness of the
				  Trust Fund. For an unpaid or partially paid lump sum account, this amount will
				  be a percentage of the outstanding balance per month determined by the Actuary.
				  For the reinstatement of a Monthly Payment Plan the Actuarial Assessment is the
				  difference between the present value of the prescribed monthly payments and the
				  present value of the payments actually made by the Purchaser. The Actuarial
				  Assessment for a change in length of a monthly payment Contract is the
				  difference between the present values of the Contract payments of the old and
				  new payment schedules.
C. "Administrative Fees" means those fees, listed in Chapter
				  12, which are assessed to the MPACT Contract Purchaser upon making application
				  for enrollment in the MPACT Program; upon making changes in the ordinary
				  services provided under the MPACT Program; or upon making changes in MPACT
				  Contract information provided to the State Treasurer. Administrative fees
				  include any other fees designated as administrative by the State
				  Treasurer.
D. "Application" means a request for acceptance into the
				  MPACT Program, made on a form, or a duplicate of the form, prepared by the
				  State Treasurer.
E. "Application Processing Fee" means the processing fee,
				  specified in Rule 12.2 A, paid by the MPACT Contract Purchaser upon application
				  for entrance into the MPACT Program.
F. "Cancellation" means voluntary discontinuation of the
				  Purchaser from the MPACT Program and voluntary discontinuation of the Qualified
				  Beneficiary's right to receive benefits under an MPACT Contract, when requested
				  by the Purchaser, so long as the Purchaser has provided at least thirty (30)
				  days' written notice to the State Treasurer and has submitted all applicable
				  Administrative Fees. An MPACT Contract may also be Involuntarily Cancelled for
				  any of the following: -The Purchaser fails to make payments pursuant to the
				  Master MPACT and/or the Participation and Payment Schedule; The Purchaser fails
				  to make a Contract payment within forty-five (45) days of the first payment due
				  date following the close of the MPACT Enrollment period during which the MPACT
				  Application was submitted.
G. "Contingent Purchaser" means a person who is named by the
				  Purchaser on the MPACT Application or by subsequent request, who will assume
				  all duties and responsibilities of the Contract Purchaser in the event of the
				  Contract Purchaser's death. The Contingent Purchaser must meet the same
				  eligibility requirements as the Contract Purchaser.
H. "Contract Purchaser" means any adult person, corporation,
				  trust, charitable organization, or other Entity eligible to purchase an MPACT
				  Contract, and who is obligated to make MPACT Contract payments and
				  Administrative Fee payments in accordance with the MPACT Contract. MPACT
				  Contract payments may be made by someone other than the designated Contract
				  Purchaser.
I. "Current Tuition Value" means the weighted average of
				  undergraduate In-state Tuition and Mandatory Fees at the four-year Institutions
				  of Higher Education for senior college Contracts and it means the weighted
				  average of In-state Tuition and Mandatory Fees at the two-year Institutions of
				  Higher Education for community/junior college Contracts.
J. "Disability of the Purchaser" means disability as defined
				  in the applicable rules, regulations, and guidelines of the Social Security
				  Administration.
K. "Disability of the Qualified Beneficiary" means a
				  disability which, based on the findings of a qualified health care
				  professional, and on approval of these findings by the Board, renders the
				  Qualified Beneficiary incapable of participating in higher education.
L. "Enrollment Period" means any period designated by the
				  Board during which Applications for enrollment in the MPACT Program will be
				  accepted by the State Treasurer.
M. "Immediate Family" for purposes of these rules means any
				  of the following relations of the Qualified Beneficiary: brother, legally
				  adopted brother, sister, legally adopted sister, half-brother, step-brother,
				  half-sister, and step-sister. Effective on and after January 1, 2002, first
				  cousins also will qualify as members of the immediate family of the Qualified
				  Beneficiary.
N. "Independent/Private In-state Postsecondary Institution"
				  means any in-state regionally accredited private four or two year college
				  located in Mississippi.
O. "In-State Tuition Rate" means the tuition rate charged to
				  a student who meets the in-state residency requirements established by the
				  Board of Trustees of State Institutions of Higher Learning or the individual
				  school attended by the student.
P. "Institution of Higher Education" means any college or
				  university listed in Chapter 7 and any other college or university in
				  Mississippi which is recognized as an Institution of Higher Education by the
				  Board of Trustees of Institutions of Higher Learning and the Commissioner of
				  Higher Education, whether or not such an Institution is listed in Part 1
				  Chapter 7.
Q. "IRC § 529" means Section 529 of the Internal Revenue
				  Code of 1986, as amended.
R. "MACS Program" means the Mississippi Affordable College
				  Savings Program.
S. "Mandatory Fees" means those fees required as A CONDITION
				  OF ENROLLMENT for ALL students attending the Postsecondary Institution in which
				  the Qualified Beneficiary is enrolled and to which the Trust Fund payments will
				  be made on behalf of the Qualified Beneficiary. Those fees charged to all
				  students may include, but are not limited to, athletic fees, activity fees,
				  health center fees, etc. Those fees which are unique to a particular student or
				  group of students such as lab fees are not considered to be mandatory. The term
				  "Mandatory Fees", as used herein, does not include charges for books, supplies,
				  room, or board even if the Postsecondary Institution attended by the Qualified
				  Beneficiary requires all students to pay such charges. Additionally, the term
				  "Mandatory Fees" does not include application entrance fees paid to
				  Postsecondary Institutions when the Qualified Beneficiary applies for
				  enrollment or orientation fees.
T. "Master MPACT Contract" means the legal document which
				  specifies the terms and conditions of the MPACT Program.
U. "MPACT Contract" refers collectively to the MPACT
				  Application, the Master MPACT Contract, and the Participation and Payment
				  Schedule. Additional documents relating to the MPACT Contract, issued or
				  received by the State Treasurer, and pursuant to the various terms and
				  conditions described, will be incorporated into the MPACT Contract.
V. "Official Change Period" means any period so designated by
				  the Board during which the MPACT Contract Purchaser may submit a written
				  request for approval of changes in MPACT Contract terms, conditions, or
				  information. Such changes may include, but are not limited to, changes in the
				  Participation and Payment Schedule; changes in information provided on the
				  MPACT Application, the Master MPACT Contract, or on other MPACT documents;
				  changes in payment method; and similar types of requests. Changes may be made
				  outside of an Official Change Period only with the approval of the State
				  Treasurer.
W. "Out-of-State Postsecondary Institution" means any
				  Out-of-State regionally accredited private four or two year college or an
				  Out-of-State regionally accredited, state-supported, nonprofit four or two year
				  college or university.
X. "Participation and Payment Schedule" means the document,
				  prepared by the State Treasurer, which defines the frequency, duration, and due
				  date of MPACT Contract Payments, based on information provided by the Purchaser
				  on the MPACT Application.
Y. "Postsecondary Institution" means an accredited public
				  educational Associate of Arts or baccalaureate degree-granting postsecondary
				  institution, or a private independent Associate of Arts or baccalaureate
				  degree-granting college or university, or an out-of-state Associate of Arts or
				  baccalaureate degree-granting college or university.
Z. "Projected College Entrance Date" means the Academic
				  School Year following the Qualified Beneficiary's projected high school
				  graduation and is the earliest date for utilization of MPACT Contract benefits
				  without written approval from the State Treasurer and subject to the provisions
				  of Rule 11.2.1, 11.2.2 and 11.4 herein. The Projected College Entrance Date is
				  calculated by the State Treasurer based on information provided by the
				  Purchaser in the MPACT Application. The State Treasurer will provide the
				  Qualified Beneficiary's Projected College Entrance Date to the
				  Purchaser.
AA. "Qualified Beneficiary" means an individual who meets all
				  Beneficiary eligibility criteria as specified in Chapter 9 and who is
				  designated by the Purchaser of an MPACT Contract to be the recipient of MPACT
				  Contract benefits. All references to the Contract Beneficiary within these
				  Rules, Regulations and Procedures assume that the Beneficiary meets the
				  Beneficiary eligibility requirements of MPACT, and is, therefore, a Qualified
				  Beneficiary.
BB. "Qualified Tuition Plan" or "QTP" means a college savings
				  plan operated by a state or an instrumentality of a state that qualifies under
				  IRC § 529. QTP's may also be called "529 Plans". The Board has established
				  two qualified tuition Programs: The Mississippi Prepaid Affordable College
				  Tuition (MPACT) Program and the Mississippi Affordable College Savings (MACS)
				  Program.
CC. "Redemption Value" means the amount of refund which shall
				  include but not be limited to the amount paid in and an additional amount in
				  the nature of interest at a rate that corresponds to the prevailing interest
				  rates for savings accounts provided by banks and savings and loan associations.
				  The Board may impose reasonable charges for such withdrawal or refund. All
				  relevant Administrative Fees, including, but not limited to, Cancellation Fees,
				  Termination Fees and Account Maintenance Fees, will be deducted from Contract
				  payments before calculation of the Redemption Value.
DD. "Resident" means a person who has established legal
				  residence in the State of Mississippi, that is, the place where he actually
				  resides with the intention of remaining there indefinitely or of returning
				  there permanently when temporarily absent. A Beneficiary is considered a
				  resident for purposes of tuition regardless of the Beneficiary's residence on
				  the date of enrollment. However, for Contracts entered into after July 1, 2003,
				  this provision only applies to nonresident Beneficiaries if (a) the original
				  Purchaser was the parent, grandparent or legal guardian of the Beneficiary; or
				  (b) the Beneficiary was a resident of Mississippi at the time the Contract was
				  purchased.
EE. "Rollover" means a non-taxable transfer between QTP's as
				  allowed under IRC § 529.
FF. "Scholarship", "Partial Scholarship", or "Full
				  Scholarship" means grants, gifts, or other financial aid awarded to a Qualified
				  Beneficiary in an amount sufficient to pay a portion or all of the same
				  benefits as are guaranteed under an MPACT Contract. A loan is not considered a
				  scholarship.
GG. "Substitute Beneficiary" means an individual named by the
				  MPACT Contract Purchaser to receive, in place of the originally named Qualified
				  Beneficiary, the benefits guaranteed under the MPACT Contract and who meets the
				  eligibility criteria specified in Rule 9.3.
HH. "Termination" means involuntary discontinuation of the
				  Purchaser from the MPACT Program and involuntary discontinuation of the
				  Qualified Beneficiary's rights to receive benefits under an MPACT Contract. An
				  MPACT Contract may be Involuntarily Terminated for any of the following
				  reasons: The Purchaser or Beneficiary has made a material misrepresentation of
				  information; The Purchaser or Beneficiary has provided false information to the
				  MPACT Program; The Purchaser has requested or accepted any form of
				  compensation, fee, commission, service charge, or any other form of payment or
				  remuneration for entering into a Contract for the benefit of a nonresident
				  beneficiary; or, such other reasons as the State Treasurer may reasonably
				  impose.
II. "UTMA" or "UGMA" mean the Uniform Transfer to Minors Act
				  or the Uniform Gift to Minors Act.
Miss. Code Ann. §
										37-155-9
				  (Rev. 2003).