Alabama State Treasurer and PACT Board Chairman John McMillan announced that directors of the Alabama PACT — the Prepaid Affordable College Tuition Program — approved a 10 percent increase to the current rate paid by the PACT Program for tuition and fees.
This increase is effective fall semester 2021.
“I am thankful to serve alongside the diligent and forward-thinking members of the Alabama PACT Board,” McMillan said. “Their vision has provided immeasurable opportunity for many PACT account holders. We are proud to offer this seventh increase in benefit payments.”
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 Alabama public eligible educational institution.
The agreement was negotiated to allow for an increase in benefit payments if the actuarial condition of the PACT program improves. The first increase of 3.0 percent was made in 2015, followed by a 6.0 percent increase in 2016, an 8.0 percent increase in 2017, a 7 percent increase in 2018, a 7 percent increase in 2019 and a 7 percent increase in 2020.
The PACT Program currently has 10,870 active contracts.