This bill mandates the Defined Contribution Retirement Program Board to establish a loan program within the Defined Contribution Retirement Plan, allowing participants to borrow from their retirement accounts without it being classified as a withdrawal or distribution. The loans will be sourced from the participant's mandatory, voluntary, or rollover contribution subaccounts, and the interest accrued on these loans will be credited to the participant's mandatory contribution subaccount, in line with the interest rates set by the board.

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

Statutes affected:
Introduced: 43:15C-3