Texas Prepaid Higher Education Tuition Program Annual Report, 2011 Page: 95
iv, 139 p. : charts, tables ; 28 cm.View a full description of this report.
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Pages from the Texas Guaranteed Tuition Plan - Actuary's Report on Program Soundness - August 31, 2011 (continued)
SECTION VI - Sensitivity Testing
The Program operates under conditions of risk and uncertainty. For example, while it is assumed
the assets of the fund will earn the annual net rate found in Section IV, we also expect actual
returns to vary from year to year. To accept the reasonableness of the basis for the measurement
of the soundness, it is useful to know how the status of the fund may be affected by the vagaries
of the markets and other factors. We have rerun the valuation under the following alternative
scenarios, and the deficit as of August 31, 2011 under each of these scenarios is presented in the
following table:
Scenarios Deficit
Baseline 641,443,112
Tuition increases are 25 basis points higher in each future year than
assumed 664,432,028
The investment return is 25 basis points lower than assumed 664,318,955
Tuition increases are 25 basis points higher in each future year and the
investment return is 25 basis points lower than assumed 687,723,821
Tuition increases are 25 basis points lower in each future year than assumed 618,812,996
Tuition increases are 25 basis points lower in each future year and the
investment return is 25 basis points lower than assumed 641,280,729
The investment return is 50 basis points lower than assumed 687,660,471
The investment return is 75 basis points lower than assumed 711,479,585
The investment return is 100 basis points lower than assumed 735,788,574
Tuition increases are 50 basis points higher in each future year than
assumed 687,785,885
Tuition increases are 75 basis points higher in each future year than
assumed 711,510,928
Tuition increases are 100 basis points higher in each future year than
assumed 735,613,50917
2011 ANNUAL REPORT -Texas Prepaid Higher Education Tuition Program
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Texas Prepaid Higher Education Tuition Program. Texas Prepaid Higher Education Tuition Program Annual Report, 2011, report, July 2012; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth303621/m1/101/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.