Products November 2, 2010
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.
Reported by Rebecca Moore
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).
You Might Also Like:
Ascensus to Acquire Mutual of Omaha’s 401(k) Business
Retirement services provider will add $3.9B in assets after providing outsourced recordkeeping to retirement division for years.
Vanguard Targets ‘Max Savers’ With New Financial Wellness Tool
The firm’s Retirement Savings Maximizer provides guidance toward additional tax-advantaged options if a saver is projected to hit the maximum...
Fidelity Goes National With 401(k)-to-Income Annuity Offering
Fidelity’s Guaranteed Income Direct gives participants the option of converting some or all of their retirement savings into a monthly...