A few PACT questions:
1) If the PACT program has sufficient funding for the Fall of '09 and the Spring of '10, why do we need to have a special session to "save it"...why not wait till he '10 Regular Session---the last minute---as usual? Seriously though,, those sessions cost money...couldn't it wait till the RSA study is done and options are laid out?
2) Why is there no investigation by The Alabama Securities Commission or the SEC into the way PACT was marketed to Alabama parents? There are regulations you know, Madam Treasurer.
3) And why are taxpayers going to be required to "save" the PACT parents from their losses while the those of us with 401k plans simply have to sit back and live with it. As I've asked before, did the PACT parents really think they had no risk exposure at all?
[UPDATE: Out of curiosity, I searched through the available online "For The Record" programs for guest appearances by Treasurer Kay Ivey...and if you listen to the one that aired October 25, 2006, at about 15:32 into the show, you'll hear her say quite explicitly that not only is there no guarantee with the PACT program, the Alabama Constitution prohibits any such guarantee. ]
Strange... this is the second post of yours to which I have (or will) post something which I previously wrote.
ReplyDeleteTim, by now, you should be aware that Troy-boy King, Guvnuh Riley(really?), and his (R) cadre are the foxes watching the state's hen house.
The PEOPLE of Alabama need an army of righteous attorneys to bring criminal and civil suit against the state for their inept and - in my opinion - corrupt bungling.
I recall the times Kay Ivey appeared on FTR and touted with glee the PACT program. I NEVER thought it was a good idea, and NEVER bought into it. However, some have, and now, they've been robbed.
Anywho...
from: http://timlennoxonline.blogspot.com/2009/05/help-me-understand.html
"I think Lowell Barron is a slimebag weasel, whom has used his position to screw the people he purports to serve, and the state at large.
"In stark contrast, I have great respect for David Bronner.
"I think Alabama State Treasurer Kay Ivey ought to be indicted, and class action lawsuit brought against her, Governor Riley, and others in the state by those whom LITERALLY "bought into" the PACT fund.
"At the state level, I think the money awarded to the state from the Exxon "we're screwing you of your royalties" off-shore suit ought to be a HANDS OFF! trust fund, not one from which our legislators constantly steal."
Tim, you keep bringing up your 401k and how it's fallen. So has mine. But comparing a 401k to a PACT contract - particularly one purchased over 10 years ago just isn't accurate.
ReplyDeleteLook at the Alabama PACT Board meeting minutes from the 2/22/2006 meeting. A board member asks this question:
MR. LEWIS: "We have two programs, 529 and PACT. How does a person decide I'm going to choose PACT versus 529?"
Brenda Emfinger, PACT administrator, answers:
"People can enroll in both and we encourage this since the two complement each other. PACT pays for tuition, and it's a prepaid (sic). The 529 is a savings program."
From the PACT staff: one is PREPAID and one is a "savings program" (kind of like our 401ks).
There's a difference. The PACT board marketed the programs differently and the PACT Web site still differentiates.
I totally agree that someone needs to look into how the board administered the program. At Left in Alabama, I just put up a post about how an actuarial (sp?) candidate told them in 2006 that the program was unsound and they blew him off. That post also has links to the meeting minutes that the board finally put up.
I'll include the diary link because it contains those useful links. Usually, I don't go to other peoples' blogs and try to send them somewhere else. Bad manners!
http://leftinalabama.com/diary/3982/actuary-warned-alabama-pact-board-in-2005-that-program-not-viable-he-didnt-get-the-job