Yes, if you are eligible, you may be able to borrow from your Oregon Public Employees Retirement System (PERS) account. This option allows participants to access a portion of their vested account balance under specific conditions.
Understanding PERS Loan Eligibility and Limits
Borrowing from your PERS account is subject to certain rules regarding the amount you can access and the repayment terms. It's crucial to understand these details to determine if a loan meets your financial needs.
- Eligibility: Access to loans is contingent upon your eligibility, which typically depends on your employment status and the nature of your PERS account.
- Loan Amount Limits:
- Maximum Loan: You can borrow up to 50 percent of your account balance. However, there's a strict ceiling, as the loan amount cannot exceed $50,000.
- Minimum Loan: The smallest loan you can take out is $1,000.
These limits ensure that loans are substantial enough to be practical while also protecting the integrity of your retirement savings.
Repaying Your PERS Loan
Repayment of a PERS loan is a structured process designed to ensure the funds are returned to your account efficiently.
- Mandatory Payroll Deduction: All loan repayments must be made through payroll deduction. This means a portion of your salary will automatically be withheld to cover your loan payments.
- After-Tax Basis: Repayments are made on an after-tax basis. This implies that the money used for repayments has already been subject to income taxes, distinguishing it from pre-tax contributions or deductions.
For more detailed information regarding in-service distributions and loan options available through Oregon PERS, it's advisable to consult official resources directly, such as the Oregon Savings Growth Plan's information on in-service distributions.
| Loan Aspect | Details |
|---|---|
| Eligibility | If eligible |
| Maximum Loan | 50% of account balance, up to $50,000 |
| Minimum Loan | $1,000 |
| Repayment Method | Payroll deduction |
| Repayment Basis | After-tax |
