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.

Board Order adopting Deferred Compensation Loan Provision

Board Order (PDF) and Resolution 2012/298

Updated 9-4-2012
Board Order and Resolution 2012/348 (PDF) (Labor Coalition)

Deferred Compensation Loan Provision

Loan Provision (PDF)