HR / Labor Relations
Optional Retirement Program Loans
March 16, 2004
This policy item applies to:
It is the policy of the State University of New York (University) to permit loans under the University’s Optional Retirement Program (ORP). Participants may take one loan per carrier within a twelve-month period. All loans are subject to IRS regulations.
B. All loans are subject to IRS regulations, which currently allow a loan balance of no more than fifty thousand dollars ($50,000.00) from all pension and tax-deferred annuity plans combined.
C. Loans are subject to rules promulgated by Optional Retirement Program (ORP) carriers in respect to matters such as funds from which loans may be made, percentage of accumulated value that may be borrowed, if less than 50%, and minimum balances required.
D. It is the participant’s responsibility to ensure that Internal Revenue Service (IRS) limits are not exceeded.
E. Interest will be charged.
F. The loan must be repaid within a five-year period, unless it is used to fund the purchase of a primary residence.
G. ORP carriers may have their own additional regulations, which result in a lesser amount of funds being available.
There are no definitions relevant to this policy.
There are no forms relevant to this policy.
In case of questions, readers are advised to refer to the New York State Legislature site for the menu of New York State Consolidated.
Chapter 337 of the Laws of 1964.
There are no appendices relevant to this policy.