This bill mandates the Defined Contribution Retirement Program Board to establish a loan program within the Defined Contribution Retirement Plan, allowing participants to take loans without classifying them as withdrawals or distributions. The loans will be sourced from the participant's mandatory, voluntary, or rollover contribution subaccounts, based on their value at the time of the loan. The bill specifies that interest on these loans will be credited to the participant's mandatory contribution subaccount, following the interest rates set by the board.

Additionally, the board is tasked with determining the criteria for loan eligibility, loan amounts, intervals, interest rates, and repayment schedules, ensuring compliance with the program's status as a qualified governmental plan under federal regulations. This initiative aims to provide participants with greater financial flexibility while maintaining the integrity of the retirement plan. The bill is set to take effect immediately upon enactment.

Statutes affected:
Introduced: 43:15C-3