ATTACHMENT 2
*See Attached Addendum
302739
City of Manteca 457(b) Plan
Stephanie Van Steyn
Director of Human Resources
[email protected] 209.456.8712
Missi:1:fnSquare Loan Guidelines Agreement PAGE 3 OF 6
RETIREMENT
D LENGTH OF LOAN
Loans must be repaid in substantially equal installments of principal and interest over a period that does not exceed five (5) years.
Principal Residence Loans
If the participant will be using the loan to purchase a principal residence, the five (5) year time limit may not apply. Participants can repay a principal residence loan over a period of up to 30 years. Please specify the maximum repayment period for principal residence loans from your plan below.
Maximum repayment period for principal residence loans = _1_0 __ (Enter a number of years, up to JO) [] LOAN REPAYMENT PROCESS
Specify the repayment method(s) and repayment frequency your plan will use. Note that loan amounts plus interest, minus applicable fees paid to MissionSquare, are repaid to participant accounts and not to MissionSquare. You can allow repayments to be made via payroll deduction or ACH payments from a participant's bank account. Loan repayments must be made at least monthly [457(b)] or quarterly [401(a)/403(b)].
Repayment Method (Select One):
For 457(b) and 401(a) or (k) plans: ■ ACH OR D Payroll Deduction 403(b) plans loan repayments can only be paid by ACH.*
*ACH Payment Rejected Fee -If a loan repayment scheduled to be paid via ACH debit is rejected due to insufficient funds, invalid bank account information, or account closure, a fee will be charged to the participant's account. The fee is $20 for the first occurrence and $50 for each subsequent occurrence.
Repayment Frequency:
For Payroll Deduction: Repayments through payroll deduction will be sent via check, wire or ACH debit by the Employer to MissionSquare on the following cycle (Select One):
D Weekly (52 per year) □ Bi-weekly (26 per year) □ Semi-monthly (24 per year) □ Monthly (12 per year) D Quarterly (4 per year)-Available to 40/(a) only.
For ACH (Select One): D Monthly (12 per year) ■ Semi-Monthly (24 per year) Next two payroll dates: MMroDIYYYr __________ and MMIDDIYYYY _________ _ Initiating Repayments: ACH debits from the employee's designated bank account will begin approximately one month following the date the loan is processed by MissionSquare.
Payroll deduction should begin within two payroll cycles following the date the loan is processed by MissionSquare. Employees using this method must notify the Employer immediately so that repayments will begin as soon as practicable, on a date determined by the Employer's payroll cycle. Failure to begin payroll deduction in a timely manner could lead to the employee's loan entering delinquency status.
Investment of Loan Repayments: All loan repayments are invested according to the instructions the participant has on file for the investment of contributions to his/her account.
Additional Loan Repayments and Early Pay-Off: A participant may pay off all of the principal and interest early without penalty or additional fee. If a loan is paid in full prior to the end of the term of the loan, no further interest will accrue. Please note that no payment date may be "skipped" even if the employee has made a large payment or submitted multiple payments.
Loans in Default: Participants using the ACH repayment option may default on their loans for lack of repayment more frequently than those using the payroll deduction method. For this reason, you may choose to require that certain participants use the payroll deduction repayment method.
Multiple Loans: If a participant has multiple loans outstanding from the plan, each loan repayment must be separately reported to MissionSquare. 9 MissionSquare Plan Services P.O. Box 219320 Kansas City, MO 64121-9320 (800) 326-7272 www.missionsq.org Fax (844) 677-3297 58298-0822-489