Definitions

Definitions. In these Rules, Regulations and Procedures of the MPACT Program, the following terms shall be defined as follows: A. “Academic School Year” means three quarters or two semesters of a twelve month school year. B. “Actuarial Assessment” means an additional Contract amount assessed by the State Treasurer to preserve the actuarial soundness of the Trust Fund. For an unpaid or partially paid lump sum account, this amount will be a percentage of the outstanding balance per month determined by the Actuary. For the reinstatement of a Monthly Payment Plan the Actuarial Assessment is the difference between the present value of the prescribed monthly payments and the present value of the payments actually made by the Purchaser. The Actuarial Assessment for a change in length of a monthly payment Contract is the difference between the present values of the Contract payments of the old and new payment schedules. C. “Administrative Fees” means those fees, listed in Chapter 12, which are assessed to the MPACT Contract Purchaser upon making application for enrollment in the MPACT Program; upon making changes in the ordinary services provided under the MPACT Program; or upon making changes in MPACT Contract information provided to the State Treasurer. Administrative fees include any other fees designated as administrative by the State Treasurer. D. “Application” means a request for acceptance into the MPACT Program, made on a form, or a duplicate of the form, prepared by the State Treasurer. E. “Application Processing Fee” means the processing fee, specified in Rule 12.2A, paid by the MPACT Contract Purchaser upon application for entrance into the MPACT Program. F. “Cancellation” means voluntary discontinuation of the Purchaser from the MPACT Program and voluntary discontinuation of the Qualified Beneficiary’s right to receive benefits under an MPACT Contract, when requested by the Purchaser, so long as the Purchaser has provided at least thirty (30) days’ written notice to the State Treasurer and has submitted all applicable Administrative Fees. An MPACT Contract may also be Involuntarily Cancelled for any of the following: - The Purchaser fails to make payments pursuant to the Master MPACT and/or the Participation and Payment Schedule; The Purchaser fails to make a Contract payment within forty-five (45) days of the first payment due date following the close of the MPACT Enrollment period during which the MPACT Application was submitted. G. “Contingent Purchaser” means a person who is named by the Purchaser on the MPACT Application or by subsequent request, who will assume all duties and responsibilities of the Contract Purchaser in the event of the Contract Purchaser’s death. The Contingent Purchaser must meet the same eligibility requirements as the Contract Purchaser. H. “Contract Purchaser” means any adult person, corporation, trust, charitable organization, or other Entity eligible to purchase an MPACT Contract, and who is obligated to make MPACT Contract payments and Administrative Fee payments in accordance with the MPACT Contract. MPACT Contract payments may be made by someone other than the designated Contract Purchaser. I. “Current Tuition Value” means the weighted average of undergraduate In-state Tuition and Mandatory Fees at the four-year Institutions of Higher Education for senior college Contracts and it means the weighted average of In-state Tuition and Mandatory Fees at the two-year Institutions of Higher Education for community/junior college Contracts. J. “Disability of the Purchaser” means disability as defined in the applicable rules, regulations, and guidelines of the Social Security Administration. K. “Disability of the Qualified Beneficiary” means a disability which, based on the findings of a qualified health care professional, and on approval of these findings by the Board, renders the Qualified Beneficiary incapable of participating in higher education. L. “Enrollment Period” means any period designated by the Board during which Applications for enrollment in the MPACT Program will be accepted by the State Treasurer. M. “Immediate Family” for purposes of these rules means any of the following relations of the Qualified Beneficiary: brother, legally adopted brother, sister, legally adopted sister, half-brother, step-brother, half-sister, and step-sister. Effective on and after January 1, 2002, first cousins also will qualify as members of the immediate family of the Qualified Beneficiary. N. “Independent/Private In-state Postsecondary Institution” means any in-state regionally accredited private four or two year college located in Mississippi. O. “In-State Tuition Rate” means the tuition rate charged to a student who meets the in-state residency requirements established by the Board of Trustees of State Institutions of Higher Learning or the individual school attended by the student. P. “Institution of Higher Education” means any college or university listed in Chapter 7 and any other college or university in Mississippi which is recognized as an Institution of Higher Education by the Board of Trustees of Institutions of Higher Learning and the Commissioner of Higher Education, whether or not such an Institution is listed in Part 1 Chapter 7. Q. “IRC § 529" means Section 529 of the Internal Revenue Code of 1986, as amended. R. “MACS Program" means the Mississippi Affordable College Savings Program. S. “Mandatory Fees” means those fees required as A CONDITION OF ENROLLMENT for ALL students attending the Postsecondary Institution in which the Qualified Beneficiary is enrolled and to which the Trust Fund payments will be made on behalf of the Qualified Beneficiary. Those fees charged to all students may include, but are not limited to, athletic fees, activity fees, health center fees, etc. Those fees which are unique to a particular student or group of students such as lab fees are not considered to be mandatory. The term “Mandatory Fees”, as used herein, does not include charges for books, supplies, room, or board even if the Postsecondary Institution attended by the Qualified Beneficiary requires all students to pay such charges. Additionally, the term “Mandatory Fees” does not include application entrance fees paid to Postsecondary Institutions when the Qualified Beneficiary applies for enrollment or orientation fees. T. “Master MPACT Contract” means the legal document which specifies the terms and conditions of the MPACT Program. U. “MPACT Contract” refers collectively to the MPACT Application, the Master MPACT Contract, and the Participation and Payment Schedule. Additional documents relating to the MPACT Contract, issued or received by the State Treasurer, and pursuant to the various terms and conditions described, will be incorporated into the MPACT Contract. V. “Official Change Period” means any period so designated by the Board during which the MPACT Contract Purchaser may submit a written request for approval of changes in MPACT Contract terms, conditions, or information. Such changes may include, but are not limited to, changes in the Participation and Payment Schedule; changes in information provided on the MPACT Application, the Master MPACT Contract, or on other MPACT documents; changes in payment method; and similar types of requests. Changes may be made outside of an Official Change Period only with the approval of the State Treasurer. W. “Out-of-State Postsecondary Institution” means any Out-of-State regionally accredited private four or two year college or an Out-of-State regionally accredited, state-supported, nonprofit four or two year college or university. X. “Participation and Payment Schedule” means the document, prepared by the State Treasurer, which defines the frequency, duration, and due date of MPACT Contract Payments, based on information provided by the Purchaser on the MPACT Application. Y. “Postsecondary Institution” means an accredited public educational Associate of Arts or baccalaureate degree-granting postsecondary institution, or a private independent Associate of Arts or baccalaureate degree-granting college or university, or an out-of- state Associate of Arts or baccalaureate degree-granting college or university. Z. “Projected College Entrance Date” means the Academic School Year following the Qualified Beneficiary’s projected high school graduation and is the earliest date for utilization of MPACT Contract benefits without written approval from the State Treasurer and subject to the provisions of Rule 11.2.1, 11.2.2 and 11.4 herein. The Projected College Entrance Date is calculated by the State Treasurer based on information provided by the Purchaser in the MPACT Application. The State Treasurer will provide the Qualified Beneficiary’s Projected College Entrance Date to the Purchaser. AA. “Qualified Beneficiary” means an individual who meets all Beneficiary eligibility criteria as specified in Chapter 9 and who is designated by the Purchaser of an MPACT Contract to be the recipient of MPACT Contract benefits. All references to the Contract Beneficiary within these Rules, Regulations and Procedures assume that the Beneficiary meets the Beneficiary eligibility requirements of MPACT, and is, therefore, a Qualified Beneficiary. BB. “Qualified Tuition Plan” or “QTP” means a college savings plan operated by a state or an instrumentality of a state that qualifies under IRC § 529. QTP’s may also be called “529 Plans”. The Board has established two qualified tuition Programs: The Mississippi Prepaid Affordable College Tuition (MPACT) Program and the Mississippi Affordable College Savings (MACS) Program. CC. “Redemption Value” means the amount of refund which shall include but not be limited to the amount paid in and an additional amount in the nature of interest at a rate that corresponds to the prevailing interest rates for savings accounts provided by banks and savings and loan associations. The Board may impose reasonable charges for such withdrawal or refund. All relevant Administrative Fees, including, but not limited to, Cancellation Fees, Termination Fees and Account Maintenance Fees, will be deducted from Contract payments before calculation of the Redemption Value. DD. “Resident” means a person who has established legal residence in the State of Mississippi, that is, the place where he actually resides with the intention of remaining there indefinitely or of returning there permanently when temporarily absent. A Beneficiary is considered a resident for purposes of tuition regardless of the Beneficiary’s residence on the date of enrollment. However, for Contracts entered into after July 1, 2003, this provision only applies to nonresident Beneficiaries if (a) the original Purchaser was the parent, grandparent or legal guardian of the Beneficiary; or (b) the Beneficiary was a resident of Mississippi at the time the Contract was purchased. EE. “Rollover” means a non-taxable transfer between QTP’s as allowed under IRC § 529. FF. “Scholarship”, “Partial Scholarship”, or “Full Scholarship” means grants, gifts, or other financial aid awarded to a Qualified Beneficiary in an amount sufficient to pay a portion or all of the same benefits as are guaranteed under an MPACT Contract. A loan is not considered a scholarship. GG. “Substitute Beneficiary” means an individual named by the MPACT Contract Purchaser to receive, in place of the originally named Qualified Beneficiary, the benefits guaranteed under the MPACT Contract and who meets the eligibility criteria specified in Rule 9.3. HH. “Termination” means involuntary discontinuation of the Purchaser from the MPACT Program and involuntary discontinuation of the Qualified Beneficiary’s rights to receive benefits under an MPACT Contract. An MPACT Contract may be Involuntarily Terminated for any of the following reasons: The Purchaser or Beneficiary has made a material misrepresentation of information; The Purchaser or Beneficiary has provided false information to the MPACT Program; The Purchaser has requested or accepted any form of compensation, fee, commission, service charge, or any other form of payment or remuneration for entering into a Contract for the benefit of a nonresident beneficiary; or, such other reasons as the State Treasurer may reasonably impose. II. “UTMA” or “UGMA” mean the Uniform Transfer to Minors Act or the Uniform Gift to Minors Act.