The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
007
:
VERMONT HIGHER EDUCATION INVESTMENT PLAN
(Cite as: 16 V.S.A. § 2878)
-
§ 2878. Participation agreements for Investment Plan
The Corporation shall have the authority to enter into Investment Plan participation
agreements with participants pursuant to the provisions of this subchapter, including
the following terms and agreements:
(1) A participation agreement shall stipulate the terms and conditions of the Investment
Plan to which the participant makes contributions.
(2) A participation agreement shall clearly specify the method for calculating the return
on the various investment options available and shall reference the relevant expenses
and other pertinent information about the account.
(3) The execution of a participation agreement by the Corporation shall not guarantee
in any way that postsecondary education costs will be equal to projections and estimates
provided by the Corporation or that the beneficiary named in any participation agreement
will be admitted to an institution of postsecondary education.
(4) A participation agreement shall clearly and prominently disclose to participants the
risks associated with the various investment options available under the applicable
Investment Plan.
(5) Participation agreements shall be organized and presented in a way and with language
that is easily understandable by the general public. A participation agreement shall
clearly and prominently disclose to participants that the Corporation, the State,
and any other governmental entity are not liable for, nor guarantee the return of
or on the participant’s contributions to an Investment Plan. A participation agreement
shall also clearly and prominently disclose to participants the existence of any load
charge or similar charge assessed against the accounts of the participants for administration,
operation, or services. No fee or similar charge may be imposed with regard to an
investment managed by the Corporation. Any fee, load, or similar charge with regard
to any investment not managed by the Corporation shall be no greater than the cost
determined by the Corporation to be required to administer the investment. The cost
of originating and servicing any education loans made or acquired pursuant to participation
agreements shall not be considered as load charges or similar charges.
(6) Any investment advisory or management contract used with respect to a participation
agreement shall be competitively bid pursuant to guidelines established by the Secretary
of Administration. (Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)