NRECA Employee Benefits Weekly

401(k) Pension Plan Loan Rate Increases

Posted on Posted in Retirement Benefits

Effective September 30, 2026, the 401(k) Pension Plan’s loan interest rate, which is set quarterly at 1% more than the nation’s prime interest rate, will increase to 8%.

Things you and your employees should consider about loans
If your cooperative offers the 401(k) Plan loan option, encourage employees to contact you for details on your co-op’s loan program before taking a loan.

Encourage participants who are considering a loan to:

  • Learn more about 401(k) loans by visiting the Employee Benefits website at cooperative.com > My Benefits and visiting the Retirement Resource Hub. The article “What Are the Tradeoffs of 401(k) Loans?” discusses this topic.
  • Seek guidance from their personal financial or tax advisor.
  • Contact NRECA’s Personal Investment & Retirement Consulting (PIRC) team at 866.673.2299, option 6, or at pirc@nreca.coop.

Model and request loans online
To view the loan interest rate or request a loan, participants can log in to the Employee Benefits website at cooperative.com > My Benefits, then

  • click Manage My 401(k) Account,
  • choose Loans & Withdrawals, and
  • follow the prompts to request/model a loan.

Participant loan information and first repayment
When an employee at your co-op takes out a new loan, you’ll receive a notification that you have a new Data Transfer Report to view. This report will include basic information about the loan, such as the participant’s name, loan amount, start date and end date and whether it’s been paid in full, updated (reamortized) or a new issue.

To view additional information about the loan—such as total number of payments, loan interest rate, next and last loan payment dates, and payoff date—you can view the New Loans report from your 401(k) administration homepage. Under the Plan Summary tab, under Recent Plan Activity, look for the New Loans link.

The first loan payment’s due date is based on your co-op’s payroll frequency (bi-weekly, monthly, etc.). Depending on when the new loan is funded, the first loan payment due date may fall in between your co-op’s payroll dates. In this case, we recommend sending the first repayment in early with the first payroll cycle. For additional details, please view the “Sending Loan Repayments” page in the BA Guide. 

For any other questions you may have, contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.

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