MONTGOMERY – Speaking in regards to the PACT Board of Directors decision to cap tuition payments to Alabama’s colleges and universities, while placing any cost difference onto PACT contract holders, Alabama State Treasurer candidate, Jeremy Sherer stated, “If this action is permitted by Alabama courts, it amounts to a failure of PACT and the State’s promise to PACT contract holders”.

“Today’s action by the PACT Board burdens all Alabama taxpayers, fails to uphold the State’s contractual obligations while increasing the prospect of future litigation, and prorates funding for higher education.”

“PACT was created to promote the goal of a college education for all Alabamians. Today, that goal was impaired by the PACT Board. Colleges, students, parents and taxpayers will suffer because of today’s decision”.

“The recent actuarial study conducted by the Retirements System of Alabama found that Alabama had a legal obligation to honor all PACT contracts. Further the RSA reported that any compromise of PACT contractual benefits would amount to a breach of contract, resulting in litigation that the State of Alabama would likely lose. I share RSA’s opinion, and believe that today’s decision by the PACT Board is a step backwards in solving PACT”.

“Considering there are several PACT related, pre-filed, proposals for the upcoming Legislative session that is only days away, I believe the PACT Board’s action is not only misdirected, but also ill-timed.”

“The PACT Board has failed to diligently and competently manage PACT finances. Now, the PACT Board has failed to allow the Legislature to craft an appropriate and effective solution for PACT that would protect all interested parties.”

“Treasurer Kay Ivey’s leadership of the PACT Board is nothing short of abysmal. PACT’s failings are rooted long before the recent economic downturn. PACT was operating at a surplus in 2001, and has since operated at a deficit. Not surprisingly, Treasurer Ivey was presiding over PACT during the entirety of PACT’s demise. The market downturn of 2008 was merely the final blow to the failed management of PACT by Ivey.”

“I’m shocked that instead of facing impeachment proceedings or solving PACT’s troubles, Kay Ivey is instead running for Governor.”

“I believe that through administrative cost cutting measures, improving investment performance, and utilizing funds within the Unclaimed Property Fund as done by other states’ college prepayment programs, Alabama can right PACT.”

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

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