Deferred Compensation Plan (IRC 457) Loan Provision
Summary of the Deferred Compensation Plan- Loan Provision On June 26, 2012, the Board of Supervisors adopted Resolution 2012/298 amending the Deferred Compensation Plan to include a Loan Provision. This amendment and loan provision are effective July 1, 2012. The following is a summary of the loan provision:
Loan type: General Purpose Loans
Loan term: 1 to 5 years
Loan minimum: $1,000
Loan maximum: The loan may not exceed the lesser of $50,000 or 50% of the participant's vested account balance
Loan interest rate: Prime plus 1%
Loan Repayment: Occurs via payroll deduction on or about the 10th of each month
Outstanding Loans: Each participant is limited to one active loan at a time
Please refer to the Board Order to determine if your bargaining unit has approved participating in the Deferred Compensation Loan Provision.
Please review the FAQ's and Pros & Cons to determine if the Deferred Compensation Loan Provision is the right decision for you.
Board Order adopting Deferred Compensation Loan Provision