How it works: The Tax-Deferred 403(b) Plan is a voluntary savings and investment plan designed to provide supplemental retirement benefits. Plan participants may borrow money under the 403(b) plan loan program before retirement. Participants with money in UC's 403(b) plan may borrow their own funds.

Under the terms of the loan, you make a commitment to repay the principal and interest. The interest rate is determined at the time the loan is funded. While an active employee, the payment is deducted from your pay with after-tax dollars. If you separate employment, you would make payment arrangements with Fidelity Retirement Services. If you don't repay the loan, it may be treated as a withdrawal and be subject to taxes and early withdrawal penalties.

How to apply: Loan/hardship requests are processed by Fidelity Retirement Services. UC Benefits has retained Fidelity Retirement Services for record keeping services which include loan disbursements from the 403(b) plan. All inquiries regarding loans or hardships can be obtained by calling Fidelity at (866) 682-7787. Eligible participants can request a loan by accessing Net Benefits. If you are requesting a withdrawal and not yet 59 1/2 years of age, you will have to speak to a customer service representative at Fidelity Retirement Services.

Things to consider before taking a loan:

1. When you borrow the money, it is not invested and does not have the opportunity for additional growth, thus eroding your retirement income
2. If you separate employment, you will have to make arrangements for repayment or default on the loan
3. If you default on the loan, it becomes taxable income and subject to taxes, loan fees and possible penalties

For assistance, please contact your Benefits representative.