Loan Program

[BG5150]

Plan has written loan procedures as a supplement to the plan document. The SPD says the administrator "may adopt any administrative rules or procedures that it deems necessary or appropriate with respect to the granting and administering of loans."

So, what are the requirements for furnishing the written procedures?

1. Give it to everyone with the SPD?

2. Give it to anyone requesting a loan?

3. Give it to anyone who asks for it?

[Kevin C]

We've always treated the loan program as part of the SPD and include it with the SPD. I don't see how your SPD disclosure could accurately reflect the contents of the plan (§2520.102-3) unless it includes the loan provisions. There is also a requirement in (l) of that reg to describe situations that could result in an offset of benefits. A loan could certainly end up doing that.

[Bird]

We give it to anyone who requests a loan or asks for the procedure. I think it's sufficient that the SPD inform participants about the loan provisions and they can get more details upon request.