July 14, 2020
As part of ongoing efforts advocating for member relief during the COVID-19 crisis, the DGA Plans announced the extension of a critical lifeline. To further assist participants experiencing financial hardship amid the continued work stoppage, the Board of Trustees of the Directors Guild of America – Producer Pension and Health Plans has unanimously voted to extend the availability of temporary loans from the Supplemental Benefit Plan through December 31, 2020.
The Board of Trustees had previously approved loans through July 31, 2020.
Before applying for a loan, participants are encouraged to seek alternative means of support in order to preserve your retirement funds to the extent possible and ensure the availability of adequate financial resources during your later years. Other options may include bank loans or other emergency resources, including those provided by the various relief funds available to entertainment industry workers.
A summary of key loan terms and exclusions are available below.
KEY LOAN TERMS
- Loan amount is limited to the lesser of $20,000 or 20% of your account balance.
- Minimum loan amount is $1,000.
- Loan amounts will be permitted only from the vested portion of your account balance.
- Interest rate for every loan is set at prime plus 1% and is fixed for the life of the loan.
- Up to two (2) outstanding loans (not to exceed $20,000 in total) will be allowed at any time during the loan availability period.
- Loan repayments must be made quarterly, beginning with the first full quarter following the quarter in which the loan is distributed.
- If you are taking a loan due to certain enumerated reasons related to COVID-19 (i.e., financial hardship due to being quarantined, furloughed, laid off, having hours reduced, unable to work due to child care, or closing/reducing business) you may elect on the application to defer loan payments for up to one year.
- Loan must be fully repaid within 5 years, and can be repaid in full at any time without penalty.
- For married participants, spousal consent will be required for loans of $5,000 or more.
EXCLUSIONS
Loans will not be permitted for:
- Participants whose Supplemental Plan accounts are subject to a qualified domestic relations order (QDRO), unless such QDRO is a separate interest QDRO, and the participant’s and alternate payee’s accounts have been segregated.
Additional information is available on the Plans website at: https://www.dgaplans.org/blog-post/board-of-trustees-extends-availability-of-temporary-loans-from-your-supplemental-plan-account-balance-through-december-31-2020/