This Disclosure Statement provides important information concerning certain material risks associated with the purchase of PACT Contracts. Contract Purchasers are strongly urged and expected to read this Disclosure Statement in its entirety before purchasing a PACT Contract. The obligations of PACT are limited obligations payable only from proceeds received from PACT Contract sales and earnings from investment performance. Neither the Contract Purchaser nor Beneficiary has any recourse against the Treasurer, the Board, the PACT Program, any other state or federal government agency, or the State of Alabama in connection with any obligations arising out of the PACT Contracts. The obligations of the PACT Contract are not backed by the full faith and credit of the State of Alabama.
No Guarantee; Not Insured: Participating in PACT entails risk of return. The Trust Fund and investments under PACT are not bank deposits, and are not debt obligations of, or insured or guaranteed by the FDIC, the State, the Board, the Treasurer, the PACT Program, or any other state or federal governmental agency. None of these entities or persons has any legal or moral obligation to ensure the ultimate payout with the respect to the purchase of a PACT Contract.
Today on the WSFA Website there is an article which states: “The chair of the Prepaid Affordable College Tuition Plan, State Treasurer Kay Ivey, says a three-member committee of the PACT Board is working on legislation that would provide up to $25 million a year from the state education budget.” How can you take 25 million dollars from the education budget that every year is in trouble itself. Again, I feel for the people involved. I am not trying to sit here and say, “Too bad for you.” But I also don’t think people who were not enrolled in this program should now have to donate to the ones that were. No state funds, especially education funds, should be used to correct this problem. If the fund would have made an excessive amount of money would they have given money to deserving students who did not enroll? No. People who were not in the program would have had no right to any excess money nor should we incur any loss since the fund lost money.