164A.708 Prepaid tuition contracts entered into before and after April 25, 2006 --

191 words·~1 min read·/ky/164a-708

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Obligations of the Commonwealth.

(a)All prepaid tuition contracts in existence on April 25, 2006, shall be supported

by the full faith and credit of the Commonwealth.

(b)If the report of the actuary submitted under KRS 164A.704(7) reflects that

there will be a real liability expected to accrue for contracts in existence on

April 25, 2006, during the next biennium, the secretary of the Finance and

Administration Cabinet shall include in the budget request for the cabinet an

appropriation to the board in an amount necessary to meet the real liability in

each fiscal year of the biennium, and the General Assembly shall appropriate

the necessary funds to meet the liability.

(a)New contracts entered into after April 25, 2006, for a tuition plan approved by

the board shall contain actuarially sound premiums sufficient to prevent their

contribution to a program fund deficit.

(b)Payments received from contracts entered into after April 25, 2006, shall be

maintained separately from contracts in existence on April 25, 2006.

(c)The Commonwealth shall have no obligation to support contracts entered into

after April 25, 2006, with appropriations if a shortfall occurs.