                                 CODE OF VIRGINIA

PREPAID TUITION CONTRACTS; PRICING RESERVES; LIMITATIONS (§ 23.1-707.1)

A. As used in this section:
			&#8220;Funded status&#8221; means the ratio of the assets of the Plan to the
actuarially estimated value of tuition obligations of the Plan, expressed as a
percentage.
			&#8220;Pricing reserve&#8221; means the percentage by which the actuarially
determined prepaid tuition contract price exceeds the amount estimated to meet
the actuarially determined tuition obligation for such prepaid tuition contract.

B. In the event that the funded status of the Plan meets or exceeds 105 percent,
the pricing reserve shall not exceed five percent.

C. In the event that the funded status of the Plan does not meet or exceed 105
percent, the pricing reserve may exceed five percent but shall not exceed 10
percent.

D. The board shall provide to the House Committee on Appropriations, the Senate
Committee on Finance and Appropriations, and the Joint Legislative Audit and
Review Commission written notification and a detailed explanation of any change
to the pricing reserve within 30 days of such change.

HISTORY: 2019, cc. 805, 806.