Ohio Administrative Code › Title 3334 - Ohio Tuition Trust Authority › Chapter 3334-1 - General Provisions › Section 3334-1-10 - Termination of tuition payment contracts; reallocation

Current through all regulations passed and filed through July 1, 2024
(A)
								
								The authority may terminate a
			 tuition payment contract under the Ohio college savings
			 program if no purchases have been made under any such contract for a
			 period of three years or more, and there are fewer than a total of five tuition
			 credits and/or tuition units or combination thereof,  provided the authority must first notify the account owner of
			 the proposed termination following the requirements in
			 paragraph (C) of this rule.
(B)
								The authority may terminate a variable college savings
			 contract under the Ohio variable college savings program if no purchases have
			 been made under any such contract for a period of three years or more and the
			 value of the account governed by such variable college savings contract is less
			 than one hundred dollars, provided that the authority must first notify the
			 account owner of the proposed termination following the requirements in
			 paragraph (C) of this rule.
(C)
								 Prior to terminating a tuition payment contract or a
			 variable college savings contract pursuant to paragraph (A) or (B) of this
			 rule, the authority must first notify the account owner of the proposed
			 termination and the options to prevent the termination, as described in
			 paragraph (D) of this rule. For the purposes of this rule, the authority shall
			 sufficiently "notify" an account owner of the proposed termination when it
			 sends, to the address contained in the authority's records for the relevant
			 account owner, a letter that can be tracked through a recognized mail service,
			 including but not limited to, UPS or USPS. Said notice shall provide each
			 account owner not less than sixty days within which the account owner may
			 notify the authority that the account owner intends to prevent termination
			 pursuant to paragraph (D) of this rule. If the account owner fails to notify
			 the authority of the applicability of paragraph (D) of this rule within said
			 sixty day period, then the authority shall within fifteen days following the
			 expiration of said sixty day period, terminate the contract, calculate the
			 refund amount as hereinafter set forth and return said amount to the account
			 owner or such person designated by the account owner. The amount of the refund
			 under a tuition payment contract shall be determined by the authority using
			 actuarially sound principles and may be reduced by the amount of any applicable
			 administrative expenses of the authority. The amount of the refund under a
			 variable college savings contract shall be the balance contained in the
			 applicable account and may be reduced by the amount of any applicable
			 administrative expenses of the authority.
(D)
								 Notwithstanding
			 anything to the contrary contained in this rule, if the beneficiary is
			 currently serving in the United States military or is currently attending an
			 eligible education institution on a continuous basis or is subject to other
			 circumstances or conditions which the authority deems sufficient to authorize
			 suspension of the application of either paragraph (A) and/or paragraph (B) of
			 this rule, then the authority, upon receipt of documentation satisfactory to
			 the authority establishing any of the foregoing, shall suspend taking action
			 under either paragraph (A) and/or paragraph (B) of this rule until such time
			 that the beneficiary is discharged from the military service, discontinues his
			 or her attendance at an eligible education institution or is no longer subject
			 to the other conditions described in this rule, whichever is applicable.
			 Account owners seeking suspension under paragraph (D) of this rule shall be
			 required periodically to submit such documentation as the authority may require
			 in order to continue any such suspension in force.
Effective: 1/16/2015
Five Year
				Review (FYR) Dates: 10/27/2014 and
				01/16/2020
Promulgated
				Under: 111.15
Statutory
				Authority: 3334.08
Rule
				Amplifies: 3334.08,
				3334.09
Prior
				Effective Dates: 8/21/06