• From: Decatur, AL
  • Registered: 03-27-2009
  • Posts: 35

Topic: Greg Canfield - PACT Statement & Blog

To All Constituents & Friends in Alabama House District 48,

I take this opportunity to thank you for the opportunity to serve you in the
Alabama House of Representatives.  The current session (I write this while we
are awaiting Senate messages) has been particularly challenging to everyone. 
While all of you may not have always agreed with my positions, I hope that you
will agree that I have served you with honor and diligence. 

I recently updated my District 48 website.  I have added blogs related to the
PACT Plan and the Jefferson County Occupation Tax.  I hope that you will have an
opportunity to view the website and blogs located at:  www.gregcanfield.com .  I
plan to update the blog section after the conclusion of this session with more
about this session and the coming session.

I thank you for your time, 

Greg Canfield
House District 48
Alabama House of Representatives
804 Park View Circle
Vestavia Hills, AL  35242
205.325.5308 Jefferson County District Ofc.
205.620.6610 Shelby County District Ofc.
334.242.7763 (Montgomery-In Session)
205.967.5571  (Home Phone)
gcanfield@bellsouth.net
www.gregcanfield.com

Patti Lambert
(256) 227-9180

pattilambert's Website

  • Registered: 03-28-2009
  • Posts: 31

Re: Greg Canfield - PACT Statement & Blog

E-mail Dated 5/29/2009

PACT Program Update From Representative Greg Wren
 
   
The Birmingham News has written two editorials recently regarding the Alabama PACT Program. If you haven't seen them I have posted the links to the articles below for your convenience.

OUR VIEW: Bailout for Alabama prepaid college plan doesn't justify cost of special session
http://blog.al.com/birmingham-news-comm … ama_p.html 
 
OUR VIEW: Alabama's troubled prepaid tuition plan should be studied first, bailed out later
http://blog.al.com/birmingham-news-comm … d_pre.html 

I would like to take this opportunity to clear up several misconceptions regarding the PACT Program, and possibly ease the minds of the PACT Program holders.
 
Current estimates of the PACT Program show that it has enough funds on hand to cover the next six years of obligations.  Keep in mind these estimates are if the PACT Program received no additional returns on the investments currently held in the PACT Fund. Therefore, current estimates report the PACT Fund has sufficient reserves pay its obligations through 2014.

There were a multitude of bills introduced by various legislators after the PACT Board issued a release about the financial viability of the PACT Program. I was one of only three legislators who voted against HB747 by Rep. Craig Ford after an amendment added by Rep. Alvin Holmes gutted the bill by allowing only PACT contracts purchased prior to December 1995 to be protected.  During the final days of the 2009 Regular Session, the Legislature did pass a resolution for the Retirement Systems of Alabama to review and analyze current problems with the PACT and make recommendations as to how to go about fixing these issues. This review is expected to take no more than 45 days to complete.

Our best course of action is to thoroughly review the results of the RSA's assessment and develop informed and well planned solutions. As I have stated before, the Legislature doesn't need to knee-jerk react by passing legislation which could make a difficult situation even worse. I will remain engaged in this critical issue in the months ahead and seek solutions that are both fair to PACT Program contract holders and the taxpayers who may be asked to fund a solution.

I hope this information is helpful to you. If you have any further questions please do not hesitate to contact me.


Greg Wren