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.
- Call Mass Mutual Customer Service Office at 1-800-528-9009, Monday through Friday between 8 AM and 8 PM EST. The Mass Mutual Customer Service associate reviews the account and generates a loan quote based on the Participant‘s request and the terms within the Plan’s loan provision.
- The loan quote and Loan Application & Agreement form are sent to the Participant based on the Participant’s request for mailing, faxing or electronic delivery.
- The participant reviews the loan quote, completes and signs the loan application.
- The participant takes the completed Loan Application & Agreement form, the loan quote from Mass Mutual and their County picture ID Card or other legal form of current picture identification to the Employee Benefits Services Unit at 651 Pine Street, 5th Floor, Martinez, CA for verification of employment and authorization. The completed and authorized form is then sent to Mass Mutual at the address at the top of the form. Note: Please call the Employee Benefits Services Unit to ensure that an authorized staff member is available.
- Loan proceeds are in the form of a check that is mailed to the Participant with a confirmation statement and amortization schedule.
Direct questions to Mass Mutual Customer Service Center at 1-800-743-5274 or the Employee Benefits Services Unit at (925) 335-1746.
Loan Repayment Transmittal
Complete Loan Repayment Transmittal Form along with your bank check or money order. More detailed information included on the Loan Repaymeht Transmittal form.