164A.330 Participation agreements for savings plan trust -- Confidentiality of
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/ky/164a-330A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
information. The savings plan trust shall have the authority to enter into participation agreements with participants on behalf of beneficiaries pursuant to the following terms and agreements:
(1)Each participation agreement shall require a participant to agree to invest a specific
amount of money in the trust for a specific period of time for the benefit of a
specific beneficiary. Participation agreements may be amended to provide for
adjusted levels of contributions based upon changed circumstances or changes in
educational plans and may contain penalties for failure to make contributions when
scheduled;
(2)Notwithstanding the provisions of subsection
(1)of this section, participants may
elect to enter into a lump-sum contribution participation agreement in connection
with which a single, lump-sum contribution is made by the participant for the
benefit of a beneficiary;
(3)Execution of a participation agreement by the trust shall not guarantee in any way
that educational costs will be equal to projections and estimates provided by the
trust or that the beneficiary named in any participation agreement will:
(a)Be admitted to an educational institution;
(b)Be allowed to continue attendance at the educational institution following
admission;
(c)Graduate from the educational institution; or
(d)With regard to an institute of higher education, if admitted, be determined to
be a resident for tuition purposes by the institution, unless the participation
agreement is vested;
(4)Beneficiaries may be changed as permitted by the rules and regulations of the board
upon written request of the participant provided, however, that the substitute
beneficiary shall be eligible;
(5)Participation agreements shall be freely amended throughout their terms in order to
enable participants to increase or decrease the level of participation, change the
designation of beneficiaries, and carry out similar matters;
(6)Each participation agreement shall provide that for vested participation agreements,
the beneficiary shall be considered a resident of the Commonwealth for tuition
purposes if the beneficiary enrolls in an institution of higher education in Kentucky;
(7)Each participation agreement shall provide that it may be canceled under the terms
and conditions, including payment of the fees and costs, set forth in the rules and
regulations promulgated by the board;
(8)The participation agreement shall ensure that contributions made pursuant to
subsections
(1)and
(2)of this section shall not be made in real or personal property
other than cash and shall not exceed the anticipated education costs of the
beneficiary;
(9)The participation agreement shall provide that the participant and the beneficiary
shall not directly or indirectly or otherwise control the investment of contributions
or earnings on contributions;
(10)Information obtained from a participant or a beneficiary and other personally
identifiable records made by the trust in the administration of this chapter shall not
be published or be open for public inspection pursuant to KRS 61.870 to 61.884,
except as provided below:
(a)Upon written request, a participant or beneficiary or his legal representative
shall be entitled to be advised of the aggregate balance of contributions and
earnings for all participation agreements that designate that same beneficiary;
(b)Information may be made available to public employees in the performance of
their duties, but the agency receiving the information shall assure the
confidentiality, as provided for in this section, of all information so released;
(c)Statistical information derived from information and records obtained or made
by the trust may be published, if it in no way reveals the identity of any
participant or beneficiary; and
(d)Nothing in this section shall preclude the program administrator or any
employee of the board from testifying or introducing as evidence information
or records obtained or made by the trust in any proceeding under this chapter,
in an action to which the trust is a party, or upon order of a court.