Chapter 3334-1 General Provisions

Terms not defined in this rule are defined in section 3334.01 of the Revised Code.

(A) “Account” means the formal record of all transactions related to a particular beneficiary for a particular account owner and includes all investment options selected by the account owner. Accounts may exist under either the Ohio college savings program and/ or the Ohio variable college savings program.

(B) “Account owner” means the person who establishes and owns an account which includes making withdrawals, designating a beneficiary and selecting investment options. An account owner can be a purchaser or contributor.

(C) “Authority” means the Ohio tuition trust authority which was created by the Ohio legislature under Chapter 3334. of the Revised Code to administer Ohio’s college savings programs in order to help prepare families financially for the costs of higher education.

(D) “Eligible education institution” means under section 529 of the Internal Revenue Code generally as an accredited post-secondary educational institution offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized post-secondary credential. Certain proprietary institutions and post-secondary vocational institutions and certain institutions located in foreign countries are eligible educational institutions. To be an eligible educational institution, the institution must be eligible to participate in U.S. department of education student aid programs.

(E) “Guaranteed savings fund” means those accounts whether containing tuition credits and/or tuition units which have the financial backing through the full faith and credit of the state of Ohio as more specifically set forth in Section 6 of Article VI, Ohio Constitution.

(F) “Incompetency” means the condition of a person, other than a minor, who is temporarily impaired by mental illness, mental deficiency, physical illness or disability, or alcohol or drug use to the extent that the person lacks sufficient understanding to make or communicate responsible decisions or to enter into contracts.

(G) “Investment options” means the various forms of investments being offered to account owners through the authority’s trust funds such as mutual funds, bank savings accounts, bank certificates of deposit and such other investments selected by the authority from time to time.

(H) “Maximum contribution limit” means the amount determined by the authority that is necessary to pay the qualified higher education expenses of the designated beneficiary. daughter, or a descendant of either; a stepson or stepdaughter; a brother, sister, stepbrother or stepsister; the father or mother or an ancestor of either; a stepfather or stepmother; a son or daughter of a brother or sister; a brother or sister of the father or mother; a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; the spouse of the beneficiary or of any of the other foregoing individuals; or any first cousin of the beneficiary.

(J) “Ohio college savings program” means the prepaid college savings program offered by the authority under which both tuition credits and/or tuition units are offered and which are included under the guaranteed savings fund. This program commenced on October 1, 1989.

(K) “Ohio tuition trust fund” means the trust fund created under and pursuant to division (A) of section 3334.11 of the Revised Code for which the authority serves as trustee.

(L) “Ohio variable college savings program” means the college savings program offered by the authority under which only program unit shares are offered but which are not included under the guaranteed savings fund and therefore the underlying investments of said program unit shares are subject to risk. This program commenced on December 1 , 2000.

(M) “Ohio variable college savings trust fund” means the trust fund created pursuant to division (C) of section 3334.20 of the Revised Code for which the authority serves as trustee.

(N) “Participation agreement” means the agreement contained in the authority’s offering statement and which sets forth the rights, obligations and duties of the account owner and the authority in relation to each other.

(O) “Permanent disability” means, upon acceptance of such proof as the authority may require, establishing that an individual cannot meet the academic and technical standards requisite to admission or participation in any program or activity of an institution of higher education due to the individual’s physical or learning disability and whose disability has lasted or can be expected to last for a continuous period of not less than twelve months. However, an individual with a physical or learning disability which has lasted or can be expected to last for a continuous period of not less than twelve months is not considered to have a permanent disability if that individual is otherwise qualified to enroll or to continue to be enrolled at any institution of higher education and is able to safely and substantially perform an educational program’s essential requirements with reasonable accommodation.

(P) “Person” means an individual or a trust who may be an account owner, beneficiary or successor owner.

(Q) “Program unit share” means that measure of ownership held by an account owner in the Ohio variable college savings trust fund.

(R) “Resident alien” means a non-U.S. citizen who has a legally established domicile in the United States.

(S) “Revised Code” means the Ohio Revised Code which sets forth all of Ohio’s statutory law as created and enacted by the Ohio legislature.

(T) “Successor owner” means the person designated by an account owner to succeed the account owner in the event of the death, incompetence or permanent disability of the account owner.

(U) “Tuition credit” means that measure of ownership of an account owner in the Ohio tuition trust fund purchased prior to July 1, 1994. One tuition credit entitles the beneficiary to a minimum payment of 1.15 per cent of the weighted average tuition at the time the tuition credit is used but not less than one per cent of the full time undergraduate tuition for an academic year at a state institution of higher education at which the beneficiary is enrolled. Tuition credits are guaranteed by the state of Ohio under the guaranteed savings fund.

(V) “Tuition payment contract” means a contract between a purchaser and the authority for the purchase of tuition credits and/or tuition units under the Ohio college savings program.

(W) “Tuition unit” means that measure of ownership of an account owner in the Ohio tuition trust fund purchased on or after July 1, 1994 but prior to January 1, 2004,. One tuition unit entitles the beneficiary to an amount equal to one percent of the weighted average tuition at the time the tuition unit is used. Tuition units are guaranteed by the state of Ohio under the guaranteed savings fund.

(X) “Variable college savings contract” means a contract between a contributor and the authority for the purchase of program unit shares under the Ohio college savings program.

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.03, 3334.08

Rule Amplifies: R.C. 3334.01

(A) Except as provided in paragraph (B) of this rule, the authority shall post notice of any and all of its meetings in the press room of the state capitol building not less than five business days prior to any such meeting unless said meeting is an emergency meeting in which case the authority shall give reasonable notice or, if the meeting is a special meeting, then the notice provided for in paragraph (B) of this rule.

(B) In addition to the requirements set forth in paragraph (A) of this rule, the authority, its executive committee or any of its subcommittees shall not hold a special meeting unless the authority gives at least twenty-four hours advance notice to any news media that have requested notification of said meetings in accordance with this rule, except in the event of an emergency requiring immediate official action. In the event of such an emergency, the member or members calling the meeting or their designee shall notify any such news media immediately of the time, place and purpose of the meeting.

(C) Any person may ascertain the time and place of all regularly scheduled meetings and the time, place, and purpose of all special meetings of the Authority, its executive committee or any subcommittee by,

(1) Calling the following telephone number during business hours: 800-233-6734.

(2) Consulting the bulletin board located in the press room in the state capitol building.

(D) Any person may, upon prior written request, obtain reasonable advance notification of all Authority meetings at which any specific type of public business is to be discussed.

(1) Any such written request shall be addressed to “Executive Director, Ohio Tuition Trust Authority, 580 S. High Street, Suite 208, Columbus, Ohio 43215 and shall contain the name and address of the person to be notified and two telephone numbers where the person may be reached.

(2) It shall be the obligation of the person making a written request for notice of said meetings to notify the authority of any change in address. Otherwise, notice shall be deemed given by mailing notice to the last address provided in writing. Such notice of change in address shall be addressed to the authority in the same manner as provided in paragraph (D)(1) of this rule.

(3) Any written request for notification of meetings received by the authority shall remain valid and in effect for a period of two years from the date of receipt. Upon expiration of said two year period, the authority shall have no obligation to provide notice of meetings under such expired request, unless notice is otherwise required by law. A request for notice of meetings may be renewed by following the procedure set forth under paragraph (D)(1) of this rule.

(E) The executive director shall maintain a list of all persons who have made written request to be notified of meetings under paragraph (C) of this rule.

(F) The authority may impose reasonable restrictions and requirements on participation by the public at any of the authority’s board meetings.

Replaces: 3334-1-01

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 121.22, 3334.03, 3334.08

Rule Amplifies: R.C. 3334.03

Prior Effective Dates: 7/27/91, 6/17/96, 9/25/97

(A) The executive committee of the authority is empowered to perform all duties and responsibilities imposed upon the authority and to take any action necessary or proper for the discharge of the authority’s duties and responsibilities, except as provided in this rule.

(B) The following duties and responsibilities may not be delegated to the executive committee:

(1) The final determination of the annual price of a tuition credit or tuition unit;

(2) The final designation of bonds as college savings bonds;

(3) The employment of an executive director;

(4) The approval of the annual budget for the operation of the authority;

(5) The approval of the overall marketing strategy for Ohio the authority’s programs; and

(6) The selection and approval of investment agents for the authority’s various college savings programs.

(C) Approved minutes of the executive committee meetings will be reported to the authority at the authority’s next regularly scheduled meeting.

(D) The executive committee may, in its discretion, choose not to exercise any of its delegated powers or duties and may refer any matter within its delegated authority to the full board of the authority for review or action.

Replaces: 3334-1-02

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.03, 3334.08

Rule Amplifies: R.C. 3334.03, 3334.08

Prior Effective Dates: 7/21/91, 10/13/00

(A) The authority may establish and impose reasonable fees for the transactions specified in this rule:

(1) For its services provided in administering, managing and supervising the authority’s college savings programs, the authority may charge its investment managers fees in such amounts as are necessary, in the sole discretion of the authority, to pay all costs and expenses for the authority’s said services.

(2) For repetitive non-sufficient fund occurrences, for account ownership changes for beneficiary changes, for other requests from account owners and/ or beneficiaries which require the authority’s personnel to perform excessive and/or labor intensive work in order to comply with said request and/or for any other unique situation which the authority reasonably deems to warrant the imposition of a fee.

(B) The authority, in its sole discretion, may waive or suspend, in whole or in part, any one or more of the fees set forth in paragraph (A)(2) of this rule upon application by an account owner or other interested person. The authority may require documentation or other evidence before granting any such waiver or suspension.

Replaces: 3334-1-03

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08, 3334.19

Rule Amplifies: R.C. 3334.08

Prior Effective Dates: 7/21/91, 1/01/94, 6/17/96, 9/25/97, 7/25/98, 10/13/00

(A) Applications to enter into a tuition payment contract and/or variable college savings contract shall be available from the office of the authority, on the authority’s website at www.collegeadvantage.com and at other places considered necessary by the authority. Applications received by the authority shall be date-stamped as evidence of receipt.

(B) To be complete, an application shall contain all of the information the authority determines necessary to properly administer the application process. For applications of tuition payment contracts, if such contracts are being offered by the authority, the authority shall notify the applicant of the enrollment period for which the application was accepted, if applicable and provide the applicant with the information necessary to begin tuition unit purchases.

(C) The authority shall not accept an application to enter into a tuition payment contract or variable college savings contract with the purchaser or contributor for a proposed beneficiary if the dollar value for all tuition credits and/or tuition units previously purchased for the proposed beneficiary pursuant to a tuition payment contract and/or contributions made pursuant to a variable college savings contract for that same beneficiary equals or exceeds the maximum contribution limit. If more than one applicant has submitted an application for the same proposed individual beneficiary and said applications, when taken together, equal or exceed the maximum contribution limit, the authority shall accept applications to enter into the applicable contracts for the proposed beneficiary in the order of their receipt.

(D) In accordance with section 1347.05 of the Revised Code, the authority shall require social security numbers and other information be provided for each applicant, account owner (whether a purchaser or contributor), beneficiary and such other persons as the authority shall deem appropriate in order to carry out the authority’s duties under Chapter 3334. of the Revised Code or other applicable law.

(E) The authority may refuse to enter into a tuition payment contract and/or variable college savings contract. Reasons for refusal may include but not necessarily be limited to the following:

(1) All information required in the application has not been provided by the applicant.

(2) The dollar value for all tuition credits and/or tuition units and/or program units/ shares already in the name of the beneficiary listed in the proposed application exceeds the maximum contribution limit or the maximum contribution limit would be exceeded by the addition of the dollar value of the program units/ shares set forth in the application.

(3) Entering into a contract with the applicant would violate federal, Ohio or other state laws pertaining to the regulation of securities or the qualification of the authority’s college savings programs under the Internal Revenue Code.

(4) A proposed applicant, account owner (whether a purchaser or contributor) or beneficiary is not qualified under Chapter 3334. of the Revised Code or any rule adopted by the authority to participate in the authority’s college savings programs..

(5) The authority determines it would be advisable, in order to protect the actuarial soundness of the Ohio college savings program or for other reasons, to limit the number of tuition payment contracts.

(6) Any other reason deemed appropriate or necessary by the authority in order to properly evaluate an application.

Replaces: 3334-1-04

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.07, 3334.08, 3334.09, 3334.18

Rule Amplifies: R.C. 3334.08, 3334.09, 3334.18

Prior Effective Dates: 7/21/91, 6/17/96, 9/25/97, 10/13/00

(A) Each account owner (whether a purchaser or contributor), beneficiary and successor owner must be either a U.S. citizen or resident alien but there is no requirement that any of said persons be a resident of Ohio in order to open an account, however, certain residency restrictions may apply depending on the investment options selected under the Ohio variable college savings program by contributors.

(B) For purposes of determining whether the proposed contributor and/or beneficiary of a variable savings contract is a resident of Ohio within the meaning of Chapter 3334. of the Revised Code, the authority may consider and may require a contributor or beneficiary to provide the following information:

(1) Residence address of the proposed contributor and/or beneficiary and/or their parents(s) or legal guardian(s);

(2) The state in which the proposed contributor and/or beneficiary and/or their parent(s) or legal guardian(s);

(a) Is registered to vote;

(b) Has registered any motor vehicle;

(c) Holds a driver’s license;

(d) Is subject to tax liability under section 5747.02 of the Revised Code;

(e) Is eligible to receive state welfare benefits.

(3) Any court order relating to the custody or residence of a beneficiary who is a minor child;

(4) Whether the proposed contributor and/or beneficiary and/or their parent(s) or legal guardian(s) fall into any of the following categories:

(a) A person who enters and currently remains upon active duty status in the United States military service while a resident of Ohio for all other legal purposes. His or her dependents shall be considered residents of Ohio as long as Ohio remains the state of such person’s domicile.

(b) A person on active duty status in the United States military service who is stationed and resides in Ohio. His or her dependents shall be considered residents of Ohio.

(c) A person who is transferred by his employer beyond the territorial limits of the fifty states of the United States and the District of Columbia who at the time of transfer was a resident of Ohio for all other legal purposes. As long a Ohio remains the state of such person’s domicile and such person has fulfilled his or her tax liability to the state of Ohio for at least the tax year preceding enrollment, his or her dependents shall be considered residents of Ohio.

(d) A person who has been employed as a migrant worker in the state of Ohio. His or her dependents shall be considered residents provided such persons have worked in Ohio at least four months during each of the three years preceding the proposed enrollment.

(C) A proposed beneficiary who is a minor child and whose parents are legally separated or divorced may be considered to be a resident of Ohio within the meaning of Chapter 3334. of the Revised Code, as long as at least one of his or her parents is a resident of Ohio under the criteria set forth in paragraph (B) of this rule.

(D) Once a variable college savings contract has been entered into, the contributor or beneficiary shall continue to be deemed to be a resident and program units/ shares may continue to be purchased on the beneficiary’s behalf.

Replaces: 3334-1-05

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08

Rule Amplifies: R.C. 3334.01, 3334.08

Prior Effective Dates: 7/21/91, 9/25/97

(A) A purchaser under the Ohio college savings program or a contributor under the Ohio variable college savings program may change the beneficiary on an account for any reason for all or a portion of the account by complying with the requirements set forth in paragraph (E) of this rule unless the account was established with funds pursuant to either a Uniform Gift To Minor Act and/or Uniform Transfer To Minor Act and/or the change would cause the aggregate balances of all accounts of the new beneficiary to exceed the maximum contribution limit. To insure a non-taxable and penalty-free event, the new beneficiary must be a member of the family of the prior beneficiary.

(B) Notwithstanding the provisions of paragraph (A) of this rule, in no event may a purchaser change a beneficiary to a new beneficiary who is in a younger age group more than one time provided, however, that if the then current beneficiary has attained the age of twenty years no beneficiary changes will be permitted unless due to the death, incompetence or permanent disability of the beneficiary or if the beneficiary is at said time serving in the United States military, any of which events shall not be counted against the aforesaid limitation. In addition, this limitation on changes to a beneficiary in a younger age group may be waived by the authority due to special or unique circumstances presented to the authority but said waiver shall be at the sole discretion of the authority. Purchasers may also change a beneficiary to a new beneficiary in an older age group one time provided, however, that if the then current beneficiary has attained the age of twenty two years no beneficiary changes will be permitted unless due to the death, incompetence or permanent disability of the beneficiary or if the beneficiary is at said time serving in the United States military, any of which events shall not be counted against the aforesaid limitation. In addition, this limitation on changes to a beneficiary in an older age group may be waived by the authority due to special or unique circumstances presented to the authority but said waiver shall be at the sole discretion of the authority. Based on the manner in which the tuition credits and/or tuition units were acquired and any other factors the authority deems relevant, the authority shall make an adjustment to the tuition credits and/or tuition units which the authority deems appropriate to maintain the actuarial soundness of the Ohio college savings program.

(C) Contributors may change to new beneficiaries whether in younger or older age groups unlimited times.

(D) Unless otherwise specified in this rule, all applications for changes of beneficiaries whether by a purchaser or contributor shall:

(1) Be made in writing on such forms as the authority may require;

(2) State the name, age, address and social security number of the new beneficiary;

(3) State whether the change was voluntarily made or due to the death, incompetence or permanent disability of the prior beneficiary.

(4) Unless otherwise set forth in the tuition payment contract or variable college savings contract, a certification by the purchaser or contributor that the change is being made voluntarily and irrevocably and that no payment has been or will be made by anyone in connection with said change.

(E) If all requirements of this rule have been fully complied with, then the new beneficiary may use monies from the tuition payment account or variable college savings account of which he is the new beneficiary at any institution of higher education provided all other conditions established by the authority for the use thereof have been met.

Replaces: 3334-1-11

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08

Rule Amplifies: R.C. 3334.09, 3334.18

Prior Effective Dates: 10/13/00, 10/08/01

(A) Neither a purchaser owning an account created under the Ohio college savings program nor a contributor who owns an account created under the Ohio variable college savings program may make a partial transfer of his ownership in said account. Only transfers of the entire ownership of an account will be permitted as described in paragraph (B) of this rule. A purchaser or contributor may, however, transfer funds out of his account to another person or entity provided, however, in the case of a purchaser, if the new owner later transfers back all or any portion of said funds to the purchaser, then further transfers by the purchaser will be prohibited unless any such additional proposed transfer is approved by the authority due to special or unique circumstances presented to the authority which approval shall, however, be at the sole discretion of the authority. This limitation shall not apply to transfers of funds by contributors.

(B) Transfer of the ownership by a purchaser of his entire account created under the Ohio college savings program to a new owner if later transferred back to the purchaser may not thereafter be further transferred unless said additional proposed transfer is approved by the authority due to special or unique circumstances presented to the authority which approval shall, however, be at the sole discretion of the authority. This limitation shall not apply to transfers by contributors of ownership of their entire accounts created under the Ohio variable college savings program. Except as limited in this paragraph (B), other ownership transfers by purchasers of their entire account shall be unrestricted.

(C) Notwithstanding the provisions of paragraph (B) of this rule, the ownership of an account created under the Ohio college savings program may be transferred more than one time by a purchaser if due to the death, incompetence or permanent disability of said purchaser , any of which events shall not be counted against the limitation set forth in said paragraph (B).

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08

Rule Amplifies: R.C. 3334.08

(A) For any Ohio college savings program accounts containing tuition credits and/or tuition units, unless the tuition payment contract provides otherwise, a purchaser (or the person controlling the account) may, by filing the appropriate notice with the authority:

(1) Rollover amounts in the account to another qualified tuition program under Section 529 of the Internal Revenue Code in which case the amount of the rollover shall be determined by the authority in an actuarially sound manner, or

(2) Terminate the contract in whole for any reason in which case the refund amount shall be determined as follows:

(a) Where the beneficiary is eighteen years of age or older, the current weighted average tuition value as of the date of the request.

(b) Except for requests made pursuant to paragraph (A) (2) (c) of this rule, where the beneficiary is under the age of eighteen years and not enrolled in an accredited institution of higher education, the lesser of the following:

(i) The weighted average tuition in effect on the date of the request adjusted for any discount given at the time of purchase, or

(ii) The actual rate of return on the Ohio tuition trust fund less administrative expenses incurred by the authority during the period the tuition credits and/or tuition units were held in the account, or

(iii) The actuarial value of the tuition credits and/or tuition units on the date of the request as established by the authority using actuarially sound principles.

(c) Where the request is due to the death or permanent disability of the beneficiary, upon submission of appropriate supporting documentation to the authority, the amount of the refund shall be calculated by the authority in accordance with division (A)(2) of section 3334.10 of the Revised Code. All termination requests under this paragraph (A) shall require a complete liquidation of all tuition credits and/or tuition units in the account. Rollovers may be in whole or in part.

(B) For variable college savings program accounts, a contributor may, by filing the appropriate notice with the authority:

(1) Rollover amounts in the account to another qualified tuition program under section 529 of the Internal Revenue Code in which event the amount of the rollover shall be equal to the account balance less any applicable administrative fees charged by the authority and/or its investment agents.

(2) Terminate the account in whole or in part for any reason in which event the amount of the refund shall be equal to the account balance (or such lesser amount being withdrawn) less any applicable administrative fees charged by the authority and/or its investment agents.

(C) Notwithstanding anything to the contrary contained in paragraphs (A) and (B) of this rule, a scholarship program may request a refund of tuition credits and/or tuition units under the Ohio college savings program or program units/ shares under the Ohio variable college savings program by filing the appropriate document with the authority. The refund shall be paid to the entity that established the scholarship or, with that entity’s approval, to the authority if authorized by law. The amount of the refund shall be determined by the authority in accordance with the requirements for refunds of scholarship accounts contained in section 529 of the Internal Revenue Code.

(D) Except as otherwise provided in this rule, any refund made pursuant to this rule shall be paid to the account owner or, if applicable, to such other refund recipient, as designated by the account owner. The refund will be paid as soon as practicable by the authority following receipt of the written request from the account owner.

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08, 3334.10

Rule Amplifies: R.C. 3334.10

(A) Except as provided in paragraph (B) of this rule, the authority may terminate a tuition payment contract if no purchases have been made under any such contract for a period of three years or more, and there are fewer than a total of five tuition credits and/or tuition units or combination thereof, or the value of said tuition credits and/or tuition units, when combined is less than seven hundred fifty dollars , whichever is greater, provided the authority must first notify the account owner of the proposed termination and the option to reallocate said credits/units into the Ohio variable college savings program in order to prevent the termination. Said notice shall provide each purchaser not less than thirty days within which the account owner may elect to reallocate in order to prevent said termination. If the account owner fails to notify the authority of its election to reallocate within said thirty day period, then the authority shall within fifteen days following the expiration of said thirty day period, terminate the contract, calculate the refund amount as hereinafter set forth and return said amount to the account owner or such other person designated by the account owner. The amount of the refund shall be determined by the authority using actuarially sound principles and shall be reduced by the amount of any applicable administrative expenses of the authority.

(B) Notwithstanding the provisions of paragraph (A) of this rule, if a purchaser also has one or more accounts in the Ohio variable college savings program and is making regular periodic contributions to at least one of said accounts, then the provisions of paragraph (A) of this rule shall not apply to said purchaser. In order for contributions to qualify under this paragraph (B), they must be made either not less than seven times during each calendar year to an account or in a total amount of not less than one hundred five dollars during each calendar year to an account.

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08, 3334.11

Rule Amplifies: R.C. 3334.08

(A) The account owner or a beneficiary who owns and controls an account under one of the authority’s college savings programs shall notify the authority as to his or her intent to use his or her tuition credits, tuition units and/or program units/ shares for an upcoming specific academic term (i.e. quarter, semester, trimester or summer term) to pay the qualified higher education expenses as defined in divisions (H) and (P) of section 3334.01 of the Revised Code of the contract’s designated beneficiary, by completion of a qualified withdrawal form provided by the authority.

(B) Distributions made pursuant to paragraph (A) of this rule shall be made using one or more of the following methods at the discretion of the authority:

(1) Distribution directly to the eligible education institution;

(2) Distribution payable to the account owner or to the beneficiary provided, however, that if the beneficiary is under the age of eighteen years, then the authority may require satisfactory documentation prior to making the distribution.

Replaces: 3334-1-07, 3334-1-09

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08

Rule Amplifies: R.C. 3334.08, 3334.09

Prior Effective Dates: 7/25/98, 10/08/01 (as to rescinded 3334-1-07) and 10/13/00 (as to rescinded 3334-1-09)

(A) The authority may choose not to renew a contract with an investment agent or may choose to terminate an existing contract prior to its natural expiration for the following reasons:

(1) Material violation or breach of any provision of the contract or applicable state or federal law;

(2) Noncompliance with the authority’s investment policy;

(3) Failure to meet the performance criteria agreed upon between the authority and the investment agent; or

(4) Other good cause as determined by the authority.

(B) Should a contract with an existing investment agent either be terminated or not renewed, resulting in an interim period for investment of program funds, the authority shall use its best efforts to contract with one or more alternative investment agents. The authority shall take reasonable steps to ensure that the interim period of investment extends only for a period that is reasonably required to select and contract with one or more new investment agents. During the interim period, the treasurer of state, a state agency having investment authority, or a temporary investment agent shall invest funds received under the variable college savings plan.

Replaces: 3334-1-13

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08, 3334.20

Rule Amplifies: R.C. 3334.20

Prior Effective Dates: 10/13/00

(A) The assets of the Ohio variable college savings program shall be segregated from all other assets of the authority and shall be placed in a fund, which shall be known as the Ohio variable college savings trust fund. The assets of the variable college savings program shall be preserved, invested, and expended solely for the purposes of the Ohio variable college savings program set forth in Chapter 3334. of the Revised Code and shall not be loaned or otherwise transferred or used by the authority for any other purpose. The authority, as trustee of the Ohio variable college savings trust fund, shall hold the assets of the Ohio variable college savings program in trust for the contributors to such plan and their beneficiaries. The authority shall receive and hold all payments, deposits, and contributions, and all earnings, until disbursed to pay tuition or other higher education expenses, make refunds pursuant to the authority’s participation agreements with contributors and Chapter 3334. of the Revised Code, and/or to pay the investment fees and others costs of administering and operating the program.

(B) The investment policy for the Ohio variable college savings program shall be designed to permit the authority to invest assets received from contributors in a manner that provides contributors with more than one investment option, to the extent permitted under Section 529 of the Internal Revenue Code. If more than one investment option is provided, each contributor and the authority shall enter into an agreement at the time a contribution is made which shall designate the investment option(s) pursuant to which such contribution shall be invested. The authority shall invest each contribution in accordance with such designation.

Replaces: 3334-1-14

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08, 3334.20

Rule Amplifies: R.C. 3334.19, 3334.20

Prior Effective Dates: 10/13/00

(A) In addition to the rights granted to the authority under rule 3334-1-10 of the Administrative Code, the authority may terminate a tuition payment contract and force a reallocation or liquidation of the account, except as otherwise provided in this rule, if the beneficiary has reached the age of twenty eight years. The authority shall provide to account owners having such accounts whose beneficiaries have attained said age, written notice of the proposed termination and advising said account owner that within thirty days following receipt of said notice, the account owner may either reallocate the entire amount in the account under said contract into the Ohio variable college savings program or may agree to said proposed termination and a liquidation of the entire account. If the account owner elects to reallocate, the authority shall determine the amount to be reallocated in an actuarially sound manner. If the account owner elects to terminate the contract and liquidate the account, the refund shall be equal to the current weighted average value of the tuition credits and/or tuition units as applicable as of the date of the request.. In either such event, the refund shall be calculated and disbursed by the authority to the account owner or such other person designated by the account owner not later than fifteen days following the aforesaid thirty day period. If the account owner receives the aforesaid thirty day notice but fails to notify the authority of its election within said thirty day period, then the account owner shall be deemed to have elected to terminate the contract and receive a full liquidation of the account. If the account owner does not receive said notice, then the authority shall proceed in accordance with the provisions of paragraph (B) of this rule.

(B) Notwithstanding the provisions of paragraph (A) of this rule, if the authority is unable to locate the purchaser, then the authority shall make a reasonable effort to locate the purchaser’s designated beneficiary and/or any person designated by the purchaser to act on the purchaser’s behalf. If the authority is unsuccessful in locating all of such persons, then the authority may terminate the purchaser’s tuition payment contract and retain all amounts which would otherwise be payable thereunder. If the authority is able to locate any of such persons, then the authority shall advise such persons that unless the purchaser contacts the authority on or before thirty days from the date that such person receives notice from the authority, the authority will terminate the tuition payment contract of the purchaser and retain all amounts which would otherwise be payable under said contract. If the purchaser does contact the authority within said thirty day period, then the purchaser shall be subject to the provisions of paragraph (A) of this rule.

(C) Notwithstanding anything to the contrary contained in this rule, if the beneficiary has reached the age of twenty eight years but is currently serving in the United States military or is currently attending an eligible education institution on a continuous basis or is subject to other circumstances or conditions which the authority deems sufficient to authorize suspension of the application of either paragraph (A) and/or paragraph (B) of this rule, then the authority , upon receipt of documentation satisfactory to the authority establishing any of the foregoing, shall suspend taking any action under either paragraph (A) and/or paragraph (B) of this rule until such time that the beneficiary is discharged from the military service, discontinues his attendance at an eligible education institution or is no longer subject to the other conditions described above, whichever is applicable. Tuition payment contract account owners seeking suspension under this paragraph (C) shall be required periodically to submit such documentation as the authority may require in order to continue any such suspension in force.

Effective: 08/21/2006

R.C. 119.032 review dates: 08/21/2011

Promulgated Under: 111.15

Statutory Authority: R.C. 3334.08, 3334.09, 3334.11

Rule Amplifies: R.C. 3334.08, 3334.09, 3334.11