Update: P.A.C.T's financial future - WSFA.com Montgomery Alabama news.

Update: P.A.C.T's financial future

Montgomery, Ala. (WSFA) -- The Retirement Systems of Alabama is investigating the state's Pre-paid Affordable Tuition Program's financial problems.  P.A.C.T. has lost about a half billion dollars, roughly half of its investments have been depleted due to the down economy.

RSA is looking at what can be done to help, and it looks like the answers are more money or limit on tuition increases.

Marc Reynolds with RSA says it would be a lot cheaper for pact to use RSA to manage its investments instead of paying $30 million a year to private investors.

"If the solution is to fund it and come up with some additional revenue and we manage it and invest it cheaper we'll be glad to do that," said Marc Reynolds.

RSA hopes to have its study completed by the end of July or the first of August. Then it will advise the legislature and Governor Bob Riley on how much money P.A.C.T. needs to pay out each year to stay afloat.

Students currently in P.A.C.T. are covered this fall.  New enrollment has been frozen.

  • Trending StoriesTrending StoriesMore>>

  • Texas school gunman: 'I'm going to kill you.' Then he fired

    Texas school gunman: 'I'm going to kill you.' Then he fired

    Saturday, May 19 2018 11:51 PM EDT2018-05-20 03:51:30 GMT
    Sunday, May 20 2018 10:02 AM EDT2018-05-20 14:02:38 GMT
    (Jennifer Reynolds/The Galveston County Daily News via AP). April Salinas, second from right, her daughters Meah, 13, and Macee, 6, and Jeramiah Kelley read notes left at memorial behind Texas First Bank, Saturday, May 19, 2018 in Santa Fe, Texas. A gu...(Jennifer Reynolds/The Galveston County Daily News via AP). April Salinas, second from right, her daughters Meah, 13, and Macee, 6, and Jeramiah Kelley read notes left at memorial behind Texas First Bank, Saturday, May 19, 2018 in Santa Fe, Texas. A gu...

    The mother of one slain student said her daughter may have been targeted because she rejected advances from the suspect, who was an ex-boyfriend of her daughter's best friend.

    More >>

    The mother of one slain student said her daughter may have been targeted because she rejected advances from the suspect, who was an ex-boyfriend of her daughter's best friend.

    More >>
  • Mother has message for son after he's arrested for stealing car

    Mother has message for son after he's arrested for stealing car

    Saturday, May 19 2018 8:49 AM EDT2018-05-19 12:49:30 GMT
    Evelyn Thompson (Source: WMC Action News 5)Evelyn Thompson (Source: WMC Action News 5)

    A police chase in Memphis ended with two suspected car thieves in police custody, and one angry mother with a message for her son behind bars. 

    More >>

    A police chase in Memphis ended with two suspected car thieves in police custody, and one angry mother with a message for her son behind bars. 

    More >>
  • In deadly school shooting, a confession but no clear motive

    In deadly school shooting, a confession but no clear motive

    Saturday, May 19 2018 1:10 AM EDT2018-05-19 05:10:39 GMT
    Sunday, May 20 2018 12:05 AM EDT2018-05-20 04:05:44 GMT
    (Galveston County Sheriff's Office via AP). This photo provided by the Galveston County Sheriff's Office shows Dimitrios Pagourtzis, who law enforcement officials took into custody Friday, May 18, 2018, and identified as the suspect in the deadly schoo...(Galveston County Sheriff's Office via AP). This photo provided by the Galveston County Sheriff's Office shows Dimitrios Pagourtzis, who law enforcement officials took into custody Friday, May 18, 2018, and identified as the suspect in the deadly schoo...

    Officials say the Texas student charged in the shooting at Santa Fe High School described planning the attack in private journals.

    More >>

    Officials say the Texas student charged in the shooting at Santa Fe High School described planning the attack in private journals.

    More >>
  • NewsMore>>

  • Pope Francis to create 14 new cardinals in June

    Pope Francis to create 14 new cardinals in June

    Sunday, May 20 2018 6:41 AM EDT2018-05-20 10:41:19 GMT
    Sunday, May 20 2018 10:02 AM EDT2018-05-20 14:02:59 GMT
    (AP Photo/Gregorio Borgia). Pope Francis asperges holy water as he celebrates a Pentecost mass in St. Peter's Basilica, at the Vatican, Sunday, May 20, 2018.(AP Photo/Gregorio Borgia). Pope Francis asperges holy water as he celebrates a Pentecost mass in St. Peter's Basilica, at the Vatican, Sunday, May 20, 2018.

    Pope Francis has announced that he will make 14 new cardinals next month, among them his chief aide for helping homeless people.

    More >>

    Pope Francis has announced that he will make 14 new cardinals next month, among them his chief aide for helping homeless people.

    More >>
  • Texas school gunman: 'I'm going to kill you.' Then he fired

    Texas school gunman: 'I'm going to kill you.' Then he fired

    Saturday, May 19 2018 11:51 PM EDT2018-05-20 03:51:30 GMT
    Sunday, May 20 2018 10:02 AM EDT2018-05-20 14:02:38 GMT
    (Jennifer Reynolds/The Galveston County Daily News via AP). April Salinas, second from right, her daughters Meah, 13, and Macee, 6, and Jeramiah Kelley read notes left at memorial behind Texas First Bank, Saturday, May 19, 2018 in Santa Fe, Texas. A gu...(Jennifer Reynolds/The Galveston County Daily News via AP). April Salinas, second from right, her daughters Meah, 13, and Macee, 6, and Jeramiah Kelley read notes left at memorial behind Texas First Bank, Saturday, May 19, 2018 in Santa Fe, Texas. A gu...

    The mother of one slain student said her daughter may have been targeted because she rejected advances from the suspect, who was an ex-boyfriend of her daughter's best friend.

    More >>

    The mother of one slain student said her daughter may have been targeted because she rejected advances from the suspect, who was an ex-boyfriend of her daughter's best friend.

    More >>
  • Congo to begin vaccinating against Ebola on Monday

    Congo to begin vaccinating against Ebola on Monday

    Sunday, May 20 2018 5:11 AM EDT2018-05-20 09:11:15 GMT
    Sunday, May 20 2018 10:01 AM EDT2018-05-20 14:01:55 GMT

    Congo's health ministry says there is one new death from Ebola, bringing to 26 the number of deaths from the deadly outbreak in Equateur province in the country's northwest.

    More >>

    Congo's health ministry says there is one new death from Ebola, bringing to 26 the number of deaths from the deadly outbreak in Equateur province in the country's northwest.

    More >>
Powered by Frankly