Ohio Administrative Code › Title 3334 - Ohio Tuition Trust Authority › Chapter 3334-1 - General Provisions › Section 3334-1-01 - Definitions

Current through all regulations passed and filed through July 1, 2024
Terms not defined in this rule are defined in section
				3334.01 of the Revised
				Code.
(A) "Account" means the formal
			 record of all transactions related to a particular beneficiary for a particular
			 account owner and includes all investment options selected by the account
			 owner. Accounts may exist under either the Ohio college savings program and/ or
			 the Ohio variable college savings program.
(B) "Account owner" means the person who
			 establishes and owns an account which includes making withdrawals, designating
			 a beneficiary and selecting investment options. An account owner can be a
			 purchaser or contributor, each as defined in section
			 3334.01 of the Revised
			 Code.
(C) "Authority" means
			 the Ohio tuition trust authority, within the office of the chancellor of the
			 Ohio board of regents, which was created by the Ohio legislature under Chapter
			 3334. of the Revised Code to administer Ohio's college savings programs in
			 order to help prepare families financially for the costs of higher
			 education.
(D) "Board" means the
			 Ohio tuition trust authority board which was created by the Ohio legislature
			 under Chapter 3334. of the Revised Code with the authority granted under
			 divisions (B)(2) and (B)(3) of section
			 3334.03 of the Revised
			 Code.
(E) "Eligible education
			 institution" means an institution that meets the
			 definition under section 529 of the Internal Revenue Code,
			 which defines an eligible education institution generally as an
			 accredited post-secondary educational institution offering credit toward a
			 bachelor's degree, an associate's degree, a graduate level or professional
			 degree, or another recognized post-secondary credential. Certain proprietary
			 institutions and post-secondary vocational institutions and certain
			 institutions located in foreign countries are eligible educational
			 institutions. To be an eligible educational institution, the institution must
			 be eligible to participate in U.S. department of education student aid
			 programs.
(F)
								 "Executive director" means the executive director of
			 the Ohio tuition trust authority.
(G) "Guaranteed
			 savings fund" means those accounts in the Ohio college
			 savings program, whether containing tuition credits and/or tuition
			 units, which have the financial backing through
			 the full faith and credit of the state of Ohio as more specifically set forth
			 in Section 6 of Article VI, Ohio Constitution.
(H) "Incompetency"
			 means the condition of a person, other than a minor, who is temporarily
			 impaired by mental illness, mental deficiency, physical illness or disability,
			 or alcohol or drug use to the extent that the person lacks sufficient
			 understanding to make or communicate responsible decisions or to enter into
			 contracts.
(I) "Investment options" means the various forms of
			 investments being offered to account owners through the authority's trust funds
			 such as mutual funds, bank savings accounts, bank certificates of deposit and
			 such other investments selected by the authority from time to time.
(J)
			 "" "Maximum account value" means the amount calculated
			 by the authority as the maximum amount that
			 may be
			 necessary to pay for the qualified higher
			 education expenses of the designated beneficiary,
			 consistent with the maximum contributions permitted under section 529 of the
			 Internal Revenue Code.
(K) "Member of the
			 family" means a person related to the beneficiary as follows: a son or
			 daughter, or a descendant of either; a stepson or stepdaughter; a brother,
			 sister, stepbrother or stepsister; the father or mother or an ancestor of
			 either; a stepfather or stepmother; a son or daughter of a brother or sister; a
			 brother or sister of the father or mother; a son-in-law, daughter-in-law,
			 father-in-law, mother-in-law, brother-in-law or sister-in-law; the spouse of
			 the beneficiary or of any of the other foregoing individuals; or any first
			 cousin of the beneficiary.
(L) "Ohio college
			 savings program" means the prepaid college savings program offered by the
			 authority under which both tuition credits and/or tuition units are offered and
			 which are included under the guaranteed savings fund. This program commenced on
			 October 1, 1989 and was closed to new investment as of
			 December 31, 2003.
(M) "Ohio tuition
			 trust fund" means the trust fund created under and pursuant to division (A) of
			 section 3334.11 of the Revised Code for
			 which the authority serves as trustee.
(N) "Ohio variable
			 college savings program" means the college savings program offered by the
			 authority under which only program unit shares are offered but which are not
			 included under the guaranteed savings fund and therefore the underlying
			 investments of said program unit shares are subject to risk. This program
			 commenced on December 1 , 2000.
(O) "Ohio variable
			 college savings trust fund" means the trust fund created pursuant to division
			 (C) of section 3334.20 of the Revised Code for
			 which the authority serves as trustee.
(P) "Permanent disability" means, upon
			 acceptance of such proof as the authority may require, establishing that an
			 individual cannot meet the academic and technical standards requisite to
			 admission or participation in any program or activity of an institution of
			 higher education due to the individual's physical or learning disability and
			 whose disability has lasted or can be expected to last for a continuous period
			 of not less than twelve months. However, an individual with a physical or
			 learning disability which has lasted or can be expected to last for a
			 continuous period of not less than twelve months is not considered to have a
			 permanent disability if that individual is otherwise qualified to enroll or to
			 continue to be enrolled at any institution of higher education and is able to
			 safely and substantially perform an educational program's essential
			 requirements with reasonable accommodation.
(Q) "Person" means an individual or a trust
			 who may be an account owner, beneficiary or successor owner.
(R) "Program unit share" means that measure
			 of ownership held by an account owner in the Ohio variable college savings
			 trust fund.
(S) "Resident alien"
			 means a non-U.S. citizen who has a legally established domicile in the United
			 States.
(T) "Revised Code" means
			 the Ohio Revised Code which sets forth all of Ohio's statutory law as created
			 and enacted by the Ohio legislature.
(U) "Successor owner" means the person
			 designated by an account owner to succeed the account owner in the event of the
			 death, incompetence or permanent disability of the account owner.
(V) "Tuition credit" means that measure of
			 ownership of an account owner in the Ohio college savings program
			 purchased prior to July 1, 1994. One tuition credit entitles the beneficiary to
			 a minimum payment of 1.15 per cent of the weighted
			 average tuition at the time the tuition credit is used but not less than one
			 per cent of the full time undergraduate tuition for an academic year at a state
			 institution of higher education at which the beneficiary is enrolled. Tuition
			 credits are guaranteed by the state of Ohio under the guaranteed savings
			 fund.
(W) "Tuition payment
			 contract" means a contract between a purchaser and the authority for the
			 purchase of tuition credits and/or tuition units under the Ohio college savings
			 program.
(X) "Tuition unit" means
			 that measure of ownership of an account owner in the Ohio
			 college savings program purchased on or after July 1,
			 1994 but prior to January 1, 2004,. One tuition unit entitles the beneficiary
			 to an amount equal to one per cent of the weighted average tuition at the time
			 the tuition unit is used. Tuition units are guaranteed by the state of Ohio
			 under the guaranteed savings fund.
(Y) "Variable college savings contract" means
			 a contract between a contributor and the authority for the purchase of program
			 unit shares under the Ohio variable college
			 savings program.
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: 3334.03
Prior
				Effective Dates: 08/21/2006, 7/2/10