Primax Provides Plan Loan Administration Services

Primax Payment Systems partnered with Northeast Retirement Services and Union Center National Bank of Union, New Jersey to launch an optional service providing solutions for the administration and recordkeeping of loans under retirement plan programs.

As part of this service, two new loan options will be available to 401(k), 403(b) and 457 Plan Sponsors: Installment Loans (IL’s) and Revolving Line of Credit Loans (RLOC’s). RLOCs are initiated using a VISA Loan Card.   

According to a press release, both options provide for:  

  • Monthly Billing Statements for participant repayment, 
  • 24/7 Access to Loan information, 
  • Summary Loan info on participant quarterly statements via a link with the plan vendor, 
  • Loan repayment collections via ACH or check, 
  • Flexibility in repayment amounts above the IRS mandated minimum repayment schedule, 
  • Handling leaves of absence, defaults, and repayments post termination of employment, and 
  • No specific reason needed for the loan (enhancing the privacy of the transaction for the participant, and eliminating the need for participant falsification re: loan reason).