3334-1-09 Refunds; voluntary rollovers or terminations.

(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