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

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)

FAQ's for the Loan Provision