(a) Death or disability.--Upon termination of a Tuition Account Program Contract, the account owner or the account owner's designee shall receive the value of the account if the account is terminated upon the happening of any of the following:

(c) Fees.--The department may impose a fee upon termination of the account for administrative costs and deduct the fee from the amount otherwise payable.

(d) Taxation of refunds.--In the event of a refund upon the termination of a Tuition Account Program Contract, to the extent the refund amount an account owner receives exceeds the sum of the contributions, it shall be subject to taxation as income under the laws of this Commonwealth.

(e) Change of beneficiary or type of tuition account program.--The substitution of the beneficiary of an account pursuant to section 312(3)¹ or the transfer of contributions, and any increased value thereof, from one type of tuition account program to the other shall not be deemed a termination of the account for purposes of this section.

(f) Scholarship.--If a beneficiary is awarded a scholarship, the terms of which cover the benefits included in Tuition Account Program Contracts entered into on behalf of the beneficiary, the account owner may receive a refund. For Tuition Account Guaranteed Savings Program Contracts, the refund shall consist of the value, in the academic award year the scholarship is paid, of the available tuition credits. For Tuition Account Investment Program Contracts, the refund shall consist of the available portion of the value of the account. The refund under this subsection for any one academic award year shall not exceed the scholarship for that year.