State Treasurer David McRae today announced Mississippi Prepaid Affordable College Tuition (MPACT) investments earned 9.5 percent in FY2024, far exceeding the 5.75 percent targets.
The 2024 returns continue the MPACT rebound that has been delivered under McRae's leadership. When McRae entered office in 2019, the Legacy Plan had a 72 percent funding ratio, leaving taxpayers on the hook for more than $125 million. Today, the Legacy Plan is funded at 99.7 percent, as of June 2023, and the cost to taxpayers has been nearly eliminated. Meanwhile, the Horizon Plan is fully funded at 144 percent and secure going forward.
"With each new 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 good-paying job. I also want to extend a special thank you to our Investments Team for their hard work throughout this process."
Two key decisions helped the MPACT Legacy Plan rebound so dramatically. First, the plan, under Treasurer McRae's direction, has experienced some of the strongest annualized returns in program history, including a record-breaking 27 percent return in FY2021. Second, Treasurer McRae - along with the College Savings Board - updated and improved actuarial assumptions in 2020 to more accurately reflect historical experiences.
