• Registered: 08-10-2009
  • Posts: 71

Topic: Obvious next step to save PACT?

Everyone has been so concerned with how to finance PACT that I think we've overlooked an obvious next step. PACT can be fixed, in the minds of PACT owners, with a simple immediate change in AL Code Section 16-33c-6(c) which currently says:

A PACT contract and any other contract entered into by or on behalf of the trust, does not constitute a debt or obligation of the state, and no participant is entitled to any benefits except those for which he or she contracted.

Every official I've spoken to or listened to has agreed that PACT has to and will be saved, but also says that we need more time to get the financing figured out. WRONG! Simply amend the current law as follows:

A PACT contract and any other contract entered into by or on behalf of the trust constitutes a debt and obligation of the state, and no participant is entitled to any benefits except those for which he or she contracted.

This simple change in law, which every official agrees is necessary, addresses the anxiety of PACT owners while buying as much time as needed (up to 5 years according to the recent actuarial projections) to solve the funding problem. Change the law now and figure out the financials later. This will totally remove the public pressure to move too quickly.

After changing the law to jibe with what the contracts already say, dissolve the PACT trust and move the assets into the state's general revenue account, then disburse tuition as needed from the state's funds. Everyone will be paid unless the entire state goes bankrupt. Again, this buys at least 5 years to balance the budget, and ensures all tuition will be paid.

Last edited by KBinHoover (08-28-2009 7:04:55 am)

  • Registered: 03-28-2009
  • Posts: 26

Re: Obvious next step to save PACT?

Hello Fellow PACT owners!  My name is Ruth Gray and I am the Tuscaloosa/West Alabama area lead.  We are planning a meeting at the end of Sept....probably the 28th at 7 pm if I can get Dr. Bentley and Artur Davis to confirm.  Does anyone have a place to meet (100 attendees)?  Please let me know asap.  You can contact me at ruthgray@savealabamapact.com

Please continue to distribute the flyers in our local churches, store windows, schools, wherever you can.  Spread the news by word of mouth and encourage anyone in our area who owns a PACT to contact me.  You can also spread the word by sending an email to everyone in your address book and asking them to forward it to everyone in their address books.  Invite them to check out our web page www.savealabamapact.com.  You can do the same thing on using your facebook friends--inviting them to join our SaveAlabamaPACT group on facebook. 

If you know any of our local politicians who would be willing to attend our mtg, please contact them.  If you need my assistance, please feel free to contact me.  I look forward to seeing each of you at our mtg.  We MUST have your support to save our PACT.