Today, the Board of Directors for College Savings Mississippi unanimously voted to reopen the Mississippi Prepaid Affordable College Tuition (MPACT) program to new enrollment on October 1. The new plan will be offered with certain program adjustments aimed at preventing future funding shortfalls for new contracts.
Enrollment in the program was deferred by the Board in 2012 amid concerns that it could not be sustained long term. An independent actuarial audit of MPACT was ordered for the first time. It was aimed at evaluating whether the program was sustainable based on existing pricing, contract terms, and investment and expense assumptions. The pricing structure for new contracts has been analyzed by MPACT’s actuaries and was approved at today’s meeting.
“The Board considered program pricing, plan and payment recommendations very carefully before approving the new structure. The process has taken nearly two years, but it is time well spent,” said Treasurer Lynn Fitch. “MPACT is still a solid college savings tool for families yet these program changes will ensure that the program is cost-neutral for taxpayers.”
The new pricing takes into account future tuition increases, expected rates of return and program risk assumptions. The Board also streamlined certain plans and payment options to simplify the program.
“We know that families have been anxious to take advantage of the opportunity to lock in college tuition with MPACT,” Board member Len Blanton stated. “Now, we can give them that opportunity, and know that we did the right thing by taking these fiscally responsible steps.”