3334-1-10 Termination of tuition payment contracts; reallocation.

(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