Illinois Tech continually reviews provisions of the Illinois Tech Retirement Plan in an effort to ensure participants are provided with the resources they need to plan for the future. During a recent review, we recognized that there were different loan policies for each investment vendor.
As a result of this review, please note that effective Saturday, September 1, 2018, the Illinois Institute of Technology loan policy is changing. This change is being made not only to add consistency across vendors, but to bring the plan in line with best practices in the industry.
Changes are as follows:
- Beginning September 1, 2018, you may have a maximum of two outstanding loans with TIAA, and two outstanding loans with Fidelity.
- Effective September 1, 2018, once you have let a loan default, you must pay it back in full in order to take out a new loan. Note that this has always been a stipulation under the Fidelity loan provisions. A loan is considered in default if you are more than 30 days late on payments.
What this means for you:
- The repayment schedule on your loan(s) issued prior to September 1, 2018, will not change.
- Any TIAA loans issued prior to September 1, 2018, will not count against the two loan limit.
- Any TIAA loans issued prior to September 1, 2018, on which you default will not impact your ability to take loans in the future.
Many participants borrow from their retirement funds to cover unexpected expenses, which is one of the reasons the plan offers a loan feature. However, to help participants with retirement readiness, Illinois Tech encourages you to consider other options before borrowing from your retirement account. To learn more about the impact of taking loans or withdrawals from your retirement plan, view this flyer: Retirement Plan Loan Flyer.
If you have any questions about your account, loan eligibility, or other plan provisions, please contact:
- TIAA Participant Services at 800.842.2776, or visit TIAA.org/iit
- Fidelity Participant Services at 800.343.0860, or login at fidelity.com