[UCRDBR] UC 403(b) Plan Loan Repayment Change – Transition to Fidelity ACH April 2026

[Departmental Benefits Representatives]

[A blue text on a black background  AI-generated content may be incorrect.]

February 17, 2026

To:
Department Benefits Representatives (DBRs)

From:
Central HR Benefits Office on behalf of UC Office of the President
Re:
UC 403(b) Plan Loan Repayment Change – Transition to Fidelity ACH April 2026
_____________________________________________________________________________________________________
DBRs, please share this information via your internal listserv.  Do not reply to this email.  Please
send a separate email with questions to benefits at ucr.edu<mailto:benefits at ucr.edu>.

The University of California (UC) is implementing a change to how the UC Voluntary Retirement Savings Plan 403(b) plan loans are repaid.  Retirement Program Services is sharing this update to help employees prepare for the transition.  The information below outlines what is changing, what employees need to do, and when these changes will take effect.

What’s changing
UC is updating the repayment method for UC 403(b) Plan loans. Currently, employees with an outstanding UC 403(b) Plan loan have their repayments deducted from their paycheck and applied directly to their retirement account.
Beginning in April 2026, loan repayments will no longer be deducted from an employee’s paycheck. Instead, employees must make their loan repayments using Fidelity’s Automated Clearing House (ACH) service, which deducts payments directly from their bank account.

What it means for employees

  *   Loan repayments deducted from employee paychecks are scheduled to end with paychecks issued after April 8, 2026.
  *   Employees must set up ACH loan repayments to continue making payments on their loan.  Instructions will be shared in future communications.
  *   For biweekly‑paid employees, the repayment schedule will change from biweekly to monthly.

How to prepare
Employees will be able to set up ACH loan repayments starting April 13, 2026.  In the meantime, please prepare for this change by:

  *   Ensuring member has an active bank account that can be used for ACH loan repayments.
  *   Considering how a monthly payment schedule may differ from current biweekly deductions.
  *   Watching for emails beginning in March 2026 that will include step‑by‑step instructions for setting up ACH loan repayments.

Important reminder about missed repayments
If ACH loan repayment is not established, the loan could “default” and be treated as a taxable distribution for the outstanding loan balance.  This would make the balance subject to income tax and potentially a 10% early withdrawal penalty.  A defaulted loan may also affect eligibility to request additional loans.

Participant questions
For any questions about this transition or how to set up ACH loan repayments, please contact a  Fidelity representative at 1‑866‑682‑7787.  Representatives are available Monday to Friday, 5:30 AM to 5:00 PM Pacific Time.

Communications and resources
Fidelity will distribute communications about the UC 403(b) Plan loan repayment change to affected employees beginning with an initial notice beginning the week of Monday, February 16, 2026, and continuing through July 2026. Starting in March 2026, Fidelity will send emails with detailed, step‑by‑step instructions for setting up ACH loan repayments.  See example communication below.

[cid:image002.png at 01DC9FF5.1D9F8630]
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.ucr.edu/pipermail/ucrdbr/attachments/20260217/3a9082d0/attachment.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 13009 bytes
Desc: image001.png
URL: <https://lists.ucr.edu/pipermail/ucrdbr/attachments/20260217/3a9082d0/attachment.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 362868 bytes
Desc: image002.png
URL: <https://lists.ucr.edu/pipermail/ucrdbr/attachments/20260217/3a9082d0/attachment-0001.png>