Pension Plans & Retirement - FAQs:

Many plans provide for loans to plan participants.  However, federal law does not require plans to make loans.  The Summary Plan Description (SPD) or other plan documents should explain the terms of any plan loan program.  Employees will only be able to obtain a loan if the plan has a loan program.

The plan may also permit withdrawals in the event of hardship, disability or termination of employment.  Federal law, however, does not require that plans provide for such withdrawals.  The SPD or other plan documents should provide information concerning any rights with respect to such withdrawals.  Withdrawing money from the plan may have tax or other adverse consequences. 

If an employee wishes to get money out of their pension plan in the form of a loan or a hardship withdrawal, he or she should contact the plan administrator, plan sponsor, or plan official.  Employees may also contact one of the Employee Benefit Security Administration’s (EBSA) benefits advisors at 1-866-444-EBSA (3272), or or online at: http://www.dol.gov/ebsa/contactEBSA/consumerassistance.html.

Note: As an overall matter, employers should be guided in their relationship with their employees by federal, state, and local employment law, and by the company-specific application of these laws as reflected in employee handbooks, manuals, and contracts (including bargaining agreements).

Not all of the employment laws referenced apply to all employers or all employees, particularly state and local government agencies.  For information on whether a particular employer or employee is covered by a law, please use the links provided for more detailed information.  This information is not intended for federal agencies or federal employees -- they should contact the U.S. Office of Personnel Management (OPM) for guidance.