401(k) Online Loan Payoff Enhancement

Plan participants can now calculate and view estimated amounts for payoff quotes (including principal and interest) for one or more active loans eligible for payoff through the NRECA Employee Benefits website. They simply select the eligible loan or loans they wish to prepay and follow the prompts to generate the payoff paperwork. 

In some cases, a message will appear saying the loan(s) cannot be paid off at this time and the participant (or their benefits administrator) will be directed to call the Member Contact Center for assistance.

Participants can select their preferred payment method—either electronic payment or payment by check via mail or overnight delivery. Personal checks are not accepted. Once participants click on “Confirm Request” in the loan payoff event, a personalized “401(k) Pension Plan Loan Payoff Statement” is generated that provides the payoff amount, expiration date for the quote and detailed instructions for making payments.

Employees should download and save a copy of the loan payoff statement for future reference. Once the loan (or loans) is paid off, the benefits administrator will receive an alert through the website’s Message Center so the participant’s payroll can be updated to reflect the paid off loan.

The 401(k) Account Loans section of the BA Guide has been updated to reflect this enhancement. An informational flier  is available to share with cooperative employees explaining how they can initiate the loan payoff process on the Employee Benefits website.

Benefits administrators and participants with questions may reach out to the Member Contact Center at 866.673.2299 or via email at contactcenter@nreca.coop for assistance.