Kentucky Administrative Regulations
Title 11 - KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY
Chapter 12 - Kentucky Educational Savings Plan Trust
Section 11 KAR 12:010 - Definitions for 11 KAR Chapter 12
Universal Citation: 11 KY Admin Regs Service 12:010
Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS 164A.300-164A.380
NECESSITY, FUNCTION, AND CONFORMITY: KRS 164A.325(9) authorizes the board to promulgate administrative regulations to implement the Kentucky Educational Savings Plan Trust. This administrative regulation establishes the definitions for 11 KAR Chapter 12.
Section 1. Definitions.
(1) "Academic
period" means one (1) semester or one (1) quarter or an equivalent period for a
vocational technical institution.
(2) "Account" means the account in the
program fund established and maintained under the trust for a
beneficiary.
(3) "Account balance"
means the fair market value of an account as of the accounting date.
(4) "Accounting date" means the date, not
later than the last business day of each quarter as determined by the program
administrator.
(5) "Administrative
fund" is defined in
KRS
164A.305(2).
(6) "Beneficiary" is defined in
KRS
164A.305(3).
(7) "Benefits" is defined in
KRS
164A.305(4).
(8) "Board" is defined by
KRS
164A.305(5).
(9) "Dependent person" means a person who is
unable to meet the criteria for an independent person as defined in subsection
(14) of this section.
(10)
"Designated date" means the date on which each beneficiary is eligible to be
designated in a participation agreement.
(11) "Domicile" or "legal residence" means a
person's true, fixed, and permanent home and is the place where the person
intends to remain, and to which the person expects to return if absent without
intending to establish a new domicile elsewhere.
(12) "Effective date" means the date which a
participant may enter into a participation agreement with the trust, which is
on or after July 1, 1989.
(13)
"Higher education costs" is defined by
KRS
164A.305(6).
(14) "Independent" means a person:
(a) Who has not been claimed by his parent as
a dependent on a federal or state income tax return for the tax year preceding
the date of application for reclassification of residency status;
(b) Who demonstrates no financial dependence
upon a parent; and
(c) Whose
parent's income is not taken into account by a private or governmental agency
furnishing educational financial assistance to the person, including a
scholarship, loan, or other assistance.
(15) "Institution of higher education" is
defined in
KRS
164A.305(7).
(16) "Notice to authorize payroll deduction"
means the participant's written instruction to the participant's employer to
deduct payments from the participant's earnings and forward that amount to the
trust.
(17) "Notice to increase or
decrease payments under participation agreement" means the participant's
written instruction to the program administrator of the trust to increase or
decrease payments under a participation agreement.
(18) "Notice to preauthorize debit" means the
participant's written instruction to the participant's financial institution to
debit or charge the participant's checking or savings account for payments due
under the participation agreement.
(19) "Notice to substitute beneficiary" means
the participant's written instruction to the program administrator of the trust
to substitute a beneficiary.
(20)
"Notice to terminate the participation agreement" means the participant's
written instruction to the program administrator of the trust to terminate a
participation agreement under the trust.
(21) "Notice to use trust benefits" means the
participant's written instruction to the program administrator of the trust to
notify the trust of the date benefits are to begin and level of benefits
paid.
(22) "Parent" means one (1)
of the following:
(a) A person's father or
mother; or
(b) A court-appointed
legal guardian if the guardianship was not established primarily to confer
Kentucky residency on the person.
(23) "Participant" is defined in
KRS
164A.305(9).
(24) "Participation agreement" is defined in
KRS
164.305(10).
(25) "Payments" means the money paid by the
participant to the trust under the participation agreement.
(26) "Program administrator" is defined in
KRS
164A.305(11).
(27) "Program fund" is defined in
KRS
164A.305(12).
(28) "Property settlement agreement" or
"decree of dissolution by the court" means the agreement or judgment approved
or entered by a court of competent jurisdiction which sets forth the
participant's right, if any, to the participant's interest in the participation
agreement.
(29) "Trust year" means
the fiscal year beginning July 1 and ending the following June 30 of each year
for purposes of the calculation of benefits.
(30) "Vested participation agreement" is
defined in
KRS
164A.305(14).
STATUTORY AUTHORITY: KRS 164A.325(9)
Disclaimer: These regulations may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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