Alabama State Treasurer John McMillan on Tuesday announced that directors of the Alabama Prepaid Affordable College Tuition (PACT) Program approved a 10% increase to the current rate paid by the program for tuition and fees. This increase is effective starting with the upcoming fall 2021 semester.
McMillan serves as the chairman of the PACT board.
“I am thankful to serve alongside the diligent and forward-thinking members of the Alabama PACT Board,” stated McMillan. “Their vision has provided immeasurable opportunity for many PACT account holders.”
Under the 2011 Class Action Settlement Agreement, PACT is required to pay tuition and qualified fees at the fall 2010 rates as certified by each respective, eligible Alabama public educational institution. The agreement was negotiated to allow for an increase in benefit payments, if the actuarial condition of the PACT program improved. The first increase of 3.0% was made in 2015 and followed by a 6.0% increase in 2016, an 8.0% increase in 2017, a 7% increase in 2018, a 7% increase in 2019 and a 7% increase in 2020.
“We are proud to offer this seventh increase in benefit payments,” McMillan concluded.
The PACT Program currently has 10,870 active contracts.
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn