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Retiree Personal Loan Increases

(Friday, December 21, 2012)
Board approves the Administrator’s recommendations to increase the retiree personal loan limit from $10,000.00 to $50,000.00.

In the Regular Board of Trustees meeting on December 20, 2012, the Board approved the Administrator’s recommendations to increase the retiree personal loan limit from $10,000.00 to $50,000.00 in accordance with Title 3, Chapter 27, Section 717(b) (14). The Board set a limit of $10,000.00 for the retiree personal loan because the insurance companies would not underwrite policies for amounts over $10,000.00.

GERS has recently secured the additional insurance coverage for the increase. The conditions are as follows:

  • No Power of Attorney will be allowed for loans over $10,000.00,
  • Term of the loan will not exceed 5 years,
  • Loans for amounts over $10,000.00 must be repaid by age 85,
  • The new insurance policy excludes coverage for pre-existing conditions. If the retiree has a preexisting condition, additional collateral in the form of an insurance policy, naming GERS as the beneficiary, must be prepaid for 6 months and cannot be cancelled during the 6 months period,
  • All other existing loan policy requirements (i.e. credit check, debt to income ratio, etc.) remain in force.

Members will be advised when we will begin the processing of retiree personal loans under the new requirements.