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 board is tasked with setting the criteria for loan eligibility, amounts, intervals, interest rates, and repayment schedules, ensuring compliance with federal regulations to maintain the program's status as a qualified governmental plan.

Additionally, the bill specifies that interest accrued on the loans will be credited to the participant's mandatory contribution subaccount, in line with the interest rates determined by the board. This initiative aims to provide participants with greater financial flexibility while safeguarding the integrity of the retirement plan. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 43:15C-3