ALABAMA PRE-PAID AFFORDABLE COLLEGE TUITION (PACT) PLAN
In a staggering blow to the hard working and trusting citizens of Alabama, the Alabama Pre-paid Affordable College Tuition Plan (PACT) has announced that it is likely to be unable to fund tuition for its beneficiaries who purchased a “guaranteed” plan. The Trustees of the PACT fund, led by State Treasurer Kay Ivey, has lost more than $350 million and is now is attempting to dodge State responsibility for paying tuition for the thousands of families that have bought into the PACT program. We believe the PACT program is an agency and instrumentality of the State of Alabama and is responsible for its contractual obligation under the PACT contract. We have consulted a finance expert who agrees that the PACT contracts failed to identify any market risk or that the PACT contract was an investment in the stock market as required by law. PACT contract owners have significant legal rights they may wish to protect as soon as possible.