HB228 Summary

• Appropriates funds from the Education Trust Fund to the PACT Trust Fund annually from fiscal year 2014 through 2021, with amounts ranging from $19.0 million to $84.0 million per year based on a formula comparing base year debt service to current debt service.

• Caps tuition and mandatory fee increases for PACT plan participants at September 30, 2009 levels, with annual increases limited to the lesser of actual increases or 2.5%, with higher increases allowed only when fund earnings exceed 5% for consecutive years and funding status remains above 90%.

• Establishes an independent PACT board of 15 members including state officials, legislators, and appointed experts in investments and financial planning, with fiduciary responsibility to maximize investment returns and annual reporting requirements to the Legislature on board diversity compliance.

• Transfers any remaining PACT Trust Fund balance to the Education Trust Fund once all program obligations are satisfied, and repeals existing fund disposition provisions.

• Effective immediately upon passage and Governor approval.