38 Miss. Code. R. 2-9.3

Current through October 31, 2024

Rule 38-2-9.3 - Beneficiary Substitutions

A. The benefits of an MPACT Contract may be transferred to an Eligible Substitute Beneficiary. To qualify as eligible, the Substitute Beneficiary must meet all of the following requirements:

1. The individual is (a) a resident of the State of Mississippi as defined in Rule 6.1 DD, or (b) a nonresident if the Purchaser is a resident of the State of Mississippi;

2. The individual is eighteen (18) years of age or younger;

3. The individual has been born at the time the Application is submitted;

4. The Substitute Beneficiary must be a member of the Immediate Family of the original Qualified Beneficiary as defined in Rule 6.1 M.

Requests for transfer of the MPACT Contract benefits to an eligible Substitute Beneficiary must be in writing. All requests for Beneficiary substitutions should be submitted with documentation evidencing the relationship of the Substitute Beneficiary to the Purchaser or the original Qualified Beneficiary.

A. In general, transfer of MPACT Contract benefits to a Substitute Beneficiary is limited to transfer to a Qualified Beneficiary whose Projected College Entrance Date is the same date or a later date than the Projected College Entrance Date of the originally named Beneficiary. The benefits of an MPACT Contract may be transferred to an eligible Substitute Beneficiary whose Projected College Entrance Date will occur prior to the Projected College Entrance Date of the originally named Beneficiary in the following cases:

1. In the event of death of the originally named Qualified Beneficiary;

2. In the event that the originally named Qualified Beneficiary becomes disabled; or

3. In the event the originally named Qualified Beneficiary receives a Full or Partial Scholarship, the terms of which cover all or a portion of the same benefits provided under MPACT Contracts.

If the Purchaser contemplates transfer of Contract Benefits to a Substitute Beneficiary who is older than the originally named Qualified Beneficiary and/or whose Projected College Entrance Date will occur prior to the Projected College Entrance Date of the originally named Qualified Beneficiary, written application for special consideration must be made to the State Treasurer. Proof of age, death, or disability, or receipt of Scholarship by the original Qualified Beneficiary should be furnished in such form as required by the State Treasurer at the time the request for substitution of the Qualified Beneficiary is submitted.

If the request for Beneficiary substitution is approved, an additional Actuarial Assessment determined to be necessary to insure the actuarial soundness of the Trust Fund may be assessed. Assessment of this additional amount will be made at the time the request for special consideration is approved. Any additional amounts must be paid before the State Treasurer will make the Beneficiary Substitution. Once this additional amount is paid, the Contract Purchaser may resume making payments as originally scheduled before the substitution occurred.

If the Contract Purchaser has established a monthly payment plan, and the MPACT Contract benefits are transferred to an eligible Substitute Beneficiary whose college entrance date precedes the final Contract Payment under the monthly payment schedule, the Substitute Beneficiary may not use any MPACT Contract benefits unless the Contract is paid in full. The Purchaser will be required to pay off the monthly payments, in full, and any outstanding Administrative Fees, in order for the Substitute Beneficiary to utilize any MPACT Contract benefits. In the event the Purchaser elects a lump sum payment schedule, the Contract must still be paid in full, including all additional Actuarial Assessments, and all Administrative Fees, in order for the Substitute Beneficiary to utilize any MPACT Contract benefits.

A non-refundable Administrative Fee, as described in Rule 12.2 F, may be assessed for the transfer of MPACT Contract benefits to an eligible Substitute Beneficiary. The Fee must be submitted by the Purchaser at the same time that the written request for substitution of Beneficiary is made.

38 Miss. Code. R. 2-9.3

Miss. Code Ann. § 37-155-9 (Rev. 2003).