This is a major change from prior expectations of the MPACT.
The Mississippi Prepaid Affordable College Tuition (MPACT) Legacy Plan will rebound to near full funding, a major reversal from prior expectations. In 2019 when Treasurer McRae came into office the plan had a 72 percent funding ration, leaving taxpayers on the hook for more than $125 million.
Currently the plan is funded at 91 percent. The cost to taxpayers has also been cut by two-thirds. Also, the Horizon Plan is fully funded at 141 percent.
“For nearly a decade, the MPACT Legacy Plan has been a bill that hung over the heads of Mississippi taxpayers, but today, we can rest much easier knowing the road to solvency is nearly secure,” said Treasurer McRae. “I want to extend a special thank you to our Investments Team for their hard work throughout this process.”
McRae reported that two decisions helped push the MPACT plan forward. First, a 27 percent performance investment return in FY2021. This marks the best one-year annualized return in program history. Second, Treasurer McRae – along with the College Savings Board – updated and improved actuarial assumptions in 2020 to more accurately reflect historical experiences.
“With each new two- or four-year college diploma, Mississippi gains another skilled worker,” said McRae. “And more skilled workers makes Mississippi more attractive to employers, drives economic development, and empowers young people to reach their God-given potential. I am proud we were able to lift more of the burden from the shoulders of taxpayers while continuing to assist students in their journey toward a college degree and a good-paying job.”