The following Administrative Fees and fee schedules will
apply to all Purchasers of MPACT Contracts, subject to changes the State
Treasurer may make over the life of the Contract in the types and/or amounts of
such Administrative Fees:
A.
Application Processing Fee - A sixty dollar ($60.00) Application Processing Fee
will be collected for EACH MPACT Application at the time that the Application
is submitted to the State Treasurer. An Application will not be accepted unless
the full amount of the Application Processing Fee is submitted along with the
Application.
B. In general, the
Application Processing Fee is nonrefundable. The Application Processing Fee
will only be refunded if the MPACT Application is rejected and the Purchaser is
denied participation in the MPACT Program through no fault of the
Purchaser.
C. Account Maintenance
Fee - All MPACT Contract payments include a nonrefundable account maintenance
fee. The account maintenance fee for monthly payment Contracts is two dollars
($2.00) per month. The account maintenance fee for lump-sum payment Contracts
is three dollars ($3.00) per year till matriculation of the Qualified
Beneficiary.
D. Cancellation Fee -
An MPACT Contract may be canceled for any of the following:
1. The Purchaser submits a written
request;
2. The Purchaser fails to
make payments pursuant to the Master MPACT and/or the Participation and Payment
Schedule;
3. 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.
Fifty percent (50%) of the amount paid into the Trust Fund,
up to a maximum of one hundred fifty dollars ($150.00), excluding
Administrative Fees, will be assessed upon the Cancellation of an MPACT
Contract. The Cancellation Fee will be waived in the event of death or
disability of the Qualified Beneficiary or with proof of scholarship. Effective
for cancellations between January 1, 2002, and September 30, 2014, the
cancellation fee will be fifty percent (50%) of the amount paid into the Trust
Fund, up to a maximum of twenty five dollars ($25.00), excluding Administrative
Fees. Effective for cancellations on or after October 1, 2014, the Cancellation
Fee will be fifty percent (50%) of the amount paid into the Trust Fund, up to a
maximum of one hundred fifty dollars ($150.00), excluding Administrative
Fees.
In the event of death or disability of the Qualified
Beneficiary, the Purchaser must submit acceptable documentation along with a
written request at the time of application for a refund.
E. Termination Fee - An MPACT
Contract may be Involuntarily Terminated for any of the following reasons:
1. The Purchaser or Beneficiary has made a
material misrepresentation of information;
2. The Purchaser or Beneficiary has provided
false information to the MPACT Program;
3. 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,
4.
Such other reasons as the State Treasurer may reasonably impose.
If the MPACT Contract is terminated, a Termination Fee of one
hundred percent (100%) of the amounts paid into the Trust Fund, excluding
Administrative Fees, up to a maximum of five hundred dollars ($500.00) will be
assessed. Effective for terminations on or after October 1, 2014, a Termination
Fee of one hundred percent (100%) of the amounts paid into the Trust Fund,
excluding Administrative Fees, up to a maximum of one thousand five hundred
dollars ($1,500.00) will be assessed. Any refund due to the Purchaser of
amounts paid into the Trust Fund, in the event of Termination of the MPACT
Contract, is addressed in Rule 15.8.
F. Substitution of Beneficiary Fee - A twenty
five dollar ($25.00) fee will be assessed to transfer MPACT Contract benefits
to a Substitute Beneficiary. In the event of death or disability of the
original Beneficiary, or in the event the Beneficiary receives a Full or
Partial Scholarship, this fee may be waived. Proof of death or disability of
the Qualified Beneficiary, or receipt of a Full or Partial Scholarship by the
Qualified Beneficiary, must be provided in such form as deemed acceptable by
the State Treasurer.
G. Fee for
Transfer of Contract Purchaser and Contingent Purchaser - A twenty five dollar
($25.00) fee will be assessed to change the MPACT Contract Purchaser and/or
Contingent Purchaser in accordance with the provisions of Rule 8.4 herein. In
the event of death or disability of the current Purchaser, this fee may be
waived.
H. Fee for Enrollment in an
Independent/Private In-state Postsecondary or Graduate Institution or in an
Out-of-State Postsecondary or Graduate Institution - In the event a Qualified
Beneficiary elects to attend an Independent/Private In-state Postsecondary or
Graduate Institution or an Out-of-State Postsecondary or Graduate Institution,
or in the event a Qualified Beneficiary transfers from an In-state Institution
of Higher Education Postsecondary Institution to an Independent/Private
In-state Postsecondary or Graduate Institution or to an Out-of-State
Postsecondary or Graduate Institution, the Contract benefits will be
transferred to such other Postsecondary or Graduate Institution in accordance
with the provisions of Chapter 13. Each time a transfer occurs, the MPACT
Contract Purchaser may be assessed a twenty-five dollar ($25.00) processing fee
per transfer.
I. Late Payment Fee -
A late payment fee of twenty dollars ($20.00) shall automatically be assessed
on each monthly MPACT Contract payment received more than fifteen (15) days
past the payment due date. An Actuarial Assessment of 1% per month will
automatically be assessed on each lump-sum payment received more than fifteen
(15) days past the payment due date. For accounts with partial lump sums and
monthly payments, the fee for late payment will be twenty dollars ($20.00) or
1%, whichever is greater. A grace period, up to four (4) days in length, may be
granted when a federal and/or state holiday occurs within the fifteen (15) days
specified in this Section. If a Purchaser's payments are habitually late, the
State Treasurer, at his discretion, may suspend the Contract as described in
Rule 11.8.
J. Fee for Return Items
- A thirty dollar ($30.00) returned item fee shall automatically be assessed
for any returned item including, but not limited to, payment made by check or
through ACH (Automatic Clearinghouse). Such payments include both MPACT
Contract payments and Administrative Fee payments that are returned.
K. Fee for Document Replacement or Copies -
Except as provided herein, Purchasers and/or Beneficiaries shall automatically
be assessed a ten dollar ($10.00) fee per document (not per page) when
requesting more than one copy, or a replacement copy, of any MPACT document
including, but not limited to, the MPACT Application, the Participation and
Payment Schedule, the Master MPACT Contract, the coupon book, and the
identification card. If another gift pack is requested, a $7.00 fee will be
assessed for the entire gift pack rather than for each document contained in
the gift pack. However, for lengthy documents, for documents requiring
additional postage beyond the basic postage rate for a first class letter, and
for documents requiring overnight delivery, the State Treasurer may assess an
additional amount above the ten dollar ($10.00) fee. The additional amount
shall not exceed $25.00 per request from the Contract Purchaser.
L. Fee for Failure to Provide Sufficient
Notification of Intent to Use the Contract Benefits -Pursuant to Rule 11.4 of
these Rules , Regulations, and Procedures, the Purchaser should give at least
sixty (60) days written notification of the Beneficiary's intent to use MPACT
Contract benefits to attend a Private or Out-of-State Postsecondary Institution
and should specify the Postsecondary Institution the Beneficiary will attend.
Failure to provide adequate notification may result in assessment of a
forty-five dollar ($45.00) fee. This fee must be paid by the Purchaser before
benefits under the MPACT Contract will be paid to the Postsecondary Institution
in which the Qualified Beneficiary has matriculated.
M. Fee for Changes in Payment Schedule - A
twenty five dollar ($25.00) processing fee will be assessed for a change in
payment schedule.
