Bill: SB 6087 — 2018
Modifying the Washington advanced college tuition payment and college savings programs (Mullet, Palumbo, Carlyle)
Requires the governing body of the advanced college tuition payment program and the college savings program to allow eligible purchasers to redeem units at the unit cash value price purchased before June 30, 2015, if all of the redeemed funds are deposited immediately into an eligible college savings program account established by the governing body. Authorizes owners to only roll over units purchased in the advanced college tuition payment program at the unit cash value price when the funds are deposited immediately into an eligible college savings program account for six months after the effective date of this act. Prohibits credits from being distributed at the unit cash value price when deposited into an out-of-state eligible 529 plan.
EFFECT OF STRIKER AMENDMENT
(1) Requires the committee on advanced tuition payment, in consultation with the state actuary and state investment board, to establish the unit cash value price. The unit cash value price includes the number of outstanding credits purchased before July 1, 2015, and outstanding credits accrued through the July 2017 unit rebase. Provides a ninety-day window to be set by the committee for withdrawal at the unit cash value price. Modifies effective date of the act to April 15, 2018, and declares an emergency. (2) Requires the GET committee to provide notice to eligible account holders at least thirty days prior to the unit cash value price being made available.
HOUSE FLOOR STRIKER AMENDMENT
(1) Requires the Guaranteed Education Tuition (GET) Committee, by March 1, 2019, to adjust all remaining unredeemed GET units purchased before July 1, 2015, after the option to roll over to the Washington College Savings program for the unit cash value price is completed, as follows: (1) First, the GET Committee must take the difference of the average unit purchase price in each individual's account and the 2016-17 unit payout value and increase the number of units in each individual's account by a number of units of equivalent total value at the 2017-18 unit purchase price, if the average unit purchase price is more than the 2016-17 unit payout value; and (2) Second, with assistance from the State Actuary, grant an additional number of units to each account holder with unredeemed and purchased units before July 1, 2015, in order to lower the best-estimate funded status of the GET program to 125 percent. (2) Requires the GET Committee to collect an amortization fee as a component of each future unit sold whenever the governing body determines an amortization fee is necessary to increase the best-estimate funded status of the GET program. (3) Makes a technical change to replace the term "credits" with "units." (4) Clarifies that for the purpose of calculating the unit cash value price the total market value of assets does not include the total accumulated market value of proceeds from units purchased after June 30, 2015. (5) Limits the number of units an account holder can receive under the second rebase to a maximum of an additional fifteen percent of their existing units.
Hearing Date: Wednesday, February 21, 2018 -- 1:30 pm
WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=6087&Year=2017 (opens a new browser tab)
|Financial Aid||Passed legislature||2018-02-21|