Ohio Administrative Code › Title 3334 - Ohio Tuition Trust Authority › Chapter 3334-1 - General Provisions › Section 3334-1-14 - Termination of tuition payment contracts; other

Current through all regulations passed and filed through July 1, 2024
(A) In addition to the rights granted to the
			 authority under rule
			 3334-1-10
			 of the Administrative Code, the authority may terminate a tuition payment
			 contract under the Ohio college savings program
			 and force a rollover or liquidation of the account, except as
			 otherwise provided in this rule, if the beneficiary has reached the age of
			 twenty eight years. The authority shall provide to account owners having such
			 accounts whose beneficiaries have attained said age, written notice
			 via letter sent to the address contained in the
			 authority's records for the relevant account owner, that can be tracked through
			 a recognized mail service, including but not limited to, UPS or USPS of
			 the proposed termination and must advise said account owner that within
			 sixty
			 days following confirmation of delivery of said notice
			 to the address of record of such account owner,
			 the account owner may either roll over the entire amount in the account under said
			 contract into the Ohio variable college savings program or may agree to said
			 proposed termination and a liquidation of the entire account. If the account
			 owner elects to roll over, the authority shall determine the amount
			 of
			 the rollover in an actuarially sound manner. If the account owner elects
			 to terminate the contract and liquidate the account, the refund shall be equal
			 to the current weighted average value of the tuition credits and/or tuition
			 units as applicable as of the date of the request. In either such event, the refund shall be
			 calculated and disbursed by the authority to the account owner or such other
			 person designated by the account owner not later than fifteen days following
			 the aforesaid sixty day period. If the authority receives confirmation of delivery of the aforesaid
			 sixty
			 day notice but the account owner fails to notify
			 the authority of its election within said sixty day
			 period, then the account owner shall be deemed to have elected to terminate the
			 contract and receive a full liquidation of the account,
			 as described in this rule. If the authority does not receive
			 confirmation of delivery of said notice, then the
			 authority shall proceed in accordance with the provisions of paragraph (B) of
			 this rule.
(B) Notwithstanding the
			 provisions of paragraph (A) of this rule, if the authority is unable to locate
			 the purchaser, then the authority shall make a reasonable effort to locate the
			 purchaser's designated beneficiary and/or any person designated by the
			 purchaser to act on the purchaser's behalf. For the
			 purposes of this rule, the authority shall make "reasonable effort" when it
			 sends, to the address contained in the authority's records for the relevant
			 beneficiary or other designated person, a letter that can be tracked through a
			 recognized mail service, including but not limited to UPS or USPS. If the
			 authority is unsuccessful in locating all of such persons, then the authority
			 may terminate the purchaser's tuition payment contract and retain all amounts
			 which would otherwise be payable thereunder. If the authority is able to locate
			 any of such persons, then the authority shall advise such persons that unless
			 the purchaser or other designated person contacts
			 the authority on or before sixty days from the date that
			 the
			 authority receives confirmation of delivery of
			 its notice , the
			 authority will terminate the tuition payment contract of the purchaser and
			 retain all amounts which would otherwise be payable under said contract. If the
			 purchaser or other designated person does contact
			 the authority within said sixty day period, then the purchaser shall be subject
			 to the provisions of paragraph (A) of this rule.
(C) Notwithstanding anything to the contrary
			 contained in this rule, if the beneficiary has reached the age of twenty eight
			 years but 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 any 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. Tuition payment contract account owners
			 seeking suspension under this paragraph (C) 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,
				3334.09
Rule
				Amplifies: 3334.08,
				3334.09
Prior
				Effective Dates: 8/21/06