BIRMINGHAM – Commenting on Treasurer Kay Ivey’s statement today regarding PACT’s financial future, Democratic candidate for Treasurer, Jeremy Sherer, stated, “I am pleased that after more than a month from when State Representative Greg Wren’s proposed legislation guaranteeing PACT contracts was first released that Treasurer Ivey has decided to support the 45,000 PACT families that the proposed legislation protects”.

“Treasurer Ivey’s additional statement, regarding the apportionment of PACT funds among colleges and universities for their reserving of enrollment for PACT students, lacks substance. Ivey’s proposal relies on the altruism and generosity of universities to assume the full financial burden caused by PACT’s mismanagement under Ivey’s administration. In no way do Ivey’s proposals provide any financial solution for PACT, it merely passes the buck.”

“I do believe that the State of Alabama has a legal and moral obligation to honoring the remaining 45,000 PACT contracts. As possibly Alabama’s next Treasurer, I am focused on solutions that the Treasurer’s office might provide. First, I would seek to reduce the near $6 million in annual administrative and consulting fees. This would be done by reducing the number of fund managers from nine to a grouping of those with the highest performance rating related to their service cost. Secondly, I would seek action by the PACT Board to adjust the fund’s investment strategy to one that improves PACT’s chances for solvency. Though PACT will likely require a influx of funding, it is the Board’s responsibility to diligently manage PACT investments towards the goal of satisfying all future financial liabilities. Moreover, I believe Alabama’s Unclaimed Property Fund should serve as the source of any supplemental funding for PACT. The Unclaimed Property Fund is valued near $400 million and is not dedicated to either of Alabama’s already stressed budgets.”

Concluding, Sherer stated, “My goal as Treasurer in relation to PACT would be to honor the State’s contractual obligations while protecting Alabama’s budgets and taxpayers from any undue burden.”

Please contact Jeremy Faulkner at (205) 446-1342 with any questions.

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