Tenn. Comp. R. & Regs. 1700-05-04-.09 - PLAN TERMINATION

(1) If the Board determines that the Educational Investment Plan is, for any reason, financially unfeasible, or is not beneficial to the citizens of Tennessee or to the State itself, then the Board, pursuant to T.C.A. § 49-7-823, may terminate the Contracts. Subject to Paragraphs (2) and (3) of this Rule below, the amount of the refund to which the Account Owner is entitled shall be equal to the Redemption Value of the Account at the time the refund is made.

(2) Notwithstanding any other provision to the contrary, refunds and other benefits payable under a Contract shall be deemed to be due and payable only to the extent that moneys are available therefore to the credit of the Educational Investment Plan, and neither the State nor the Board shall be liable for any amount in excess of such sums.

(3) Should the Educational Investment Plan be terminated by the Board and the assets of the fund prove to be less than would be required to fully pay all obligations of the Plan in full, the Board shall first defray all administrative expenses of the Plan. The Board shall then reduce payments owed pursuant to a Contract, pro rata, to the degree necessary to bring the total disbursement of the Educational Investment Plan within the amount of the remaining funds.

Notes

Tenn. Comp. R. & Regs. 1700-05-04-.09

Emergency rule filed December 29, 2011; effective through June 26, 2012. New rule filed December 29, 2011; effective May 30, 2012. Amendments filed March 5, 2018; effective 6/3/2018.

Authority: T.C.A. §§ 49-7-802, 49-7-805, 49-7-805(16), 49-7-823, and 49-7-824.