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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:black;border:none windowtext 1.0pt;padding:0in"><img width="144" height="55" id="Picture_x0020_1" src="cid:image001.png@01DCCCC3.8B81A250" alt="A blue text on a black background
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif">April 15, 2026<o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></b></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">To:
<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">Department Benefits Representatives (DBRs)<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">From:
<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">Central HR Benefits Office on behalf of UC Office of the President<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:150%"><span lang="EN" style="font-size:11.0pt;line-height:150%;font-family:"Arial",sans-serif">Re:
<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt;font-family:"Arial",sans-serif">UC 403(b) Loan Repayment Change: Employee ACH Setup Required by 5/20/26</span></b><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p style="margin:0in"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:black">DBRs, please share this information via your internal listserv.
<b><u>Please do not reply to this email</u></b>. Please send a separate email with questions to
</span><a href="mailto:benefits@ucr.edu"><span style="font-size:11.0pt;font-family:"Arial",sans-serif">benefits@ucr.edu</span></a><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:black">.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span lang="EN" style="font-size:11.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">As a follow‑up to the UCOP original communication dated February 13, 2026 (see below), effective Wednesday, April 8, 2026, UC 403(b) Plan loan repayments are no longer deducted from employee
paychecks. All repayments must now be made through Fidelity’s Automated Clearing House (ACH) service.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">To keep the 403(b) Plan loan in good standing, employees must set up ACH repayments by <b>May 20, 2026</b>. As part of this process, employees must add personal bank account information and select
a monthly debit date in Fidelity NetBenefits® at <a href="http://www.netbenefits.com/" target="_blank">www.netbenefits.com</a> or by calling Fidelity at <b>1‑866‑682‑7787</b>. For biweekly paid employees, loan repayments will change from a biweekly payroll
deduction to a monthly ACH debit.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Important reminder about missed 403(b) loan repayments</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">If an employee does not establish ACH loan repayment, 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 Form 1099‑R will be issued by Fidelity in January of the year following the default. A defaulted loan may also affect an employee’s eligibility to request additional loans.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Participant questions</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">For questions about this transition or how to set up ACH loan repayments, please call a Fidelity representative at <b>1‑866‑682‑7787</b>. Representatives are available Monday through Friday,
5:30 AM to 5:00 PM Pacific Time.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Communications and resources</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">Fidelity began sending communications about the UC 403(b) Plan loan repayment change to affected employees in February and will continue through September 2026. Attached is Fidelity’s most recent
communication to affected employees. It includes instructions on how employees can set up or verify their ACH loan repayments.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>======</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>From:</b> UCOP <br>
<b>Sent:</b> Friday, February 13, 2026, 4:27 PM<br>
<b>Subject:</b> Retirement Program Services – UC 403(b) Plan Loan Repayment Change: Transition to Fidelity ACH (Effective April 2026)</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>======</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Friday, February 13, 2026 (4:27 PM PST) </b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">The University of California (UC) is implementing a change to how UC 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.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>What’s changing</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">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 paychecks and applied directly to
the retirement account.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">Beginning in April 2026, loan repayments will no longer be deducted from employee paychecks. Instead, employees must make loan repayments using Fidelity’s Automated Clearing House (ACH) service,
which deducts payments directly from bank accounts.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>What this means for employees</b></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%;mso-list:l3 level1 lfo3">
Loan repayments deducted from employee paychecks are scheduled to end with paychecks issued after <b>April 8, 2026</b>.</li><li class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%;mso-list:l3 level1 lfo3">
Employees must set up ACH loan repayments to continue making payments on loans. Instructions will be shared in future communications.</li><li class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%;mso-list:l3 level1 lfo3">
For biweekly‑paid employees, the repayment schedule will change from biweekly to monthly.</li></ul>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>How employees can prepare</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">Employees will be able to set up ACH loan repayments starting <b>April 13, 2026</b>. In the meantime, they can prepare for this change by:</p>
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<li class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%;mso-list:l0 level1 lfo4">
Ensuring they have an active bank account that can be used for ACH loan repayments.</li><li class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%;mso-list:l0 level1 lfo4">
Considering how a monthly payment schedule may differ from their current biweekly deductions.</li><li class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%;mso-list:l0 level1 lfo4">
Watching for emails beginning in <b>March 2026</b> that will include step‑by‑step instructions for setting up ACH loan repayments.</li></ul>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Important reminder about missed repayments</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">If an employee does not establish ACH loan repayment, 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 the eligibility to request additional loans.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Participant questions</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">If employees have questions about this transition or how to set up ACH loan repayments, please call a Fidelity representative at <b>1‑866‑682‑7787</b>. Representatives are available <b>Monday
to Friday, 5:30 AM to 5:00 PM Pacific Time</b>.</p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%"><b>Communications and resources</b></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:115%">Fidelity will distribute communications about the UC 403(b) Plan loan repayment change to affected employees beginning with an initial notice <b>by the week of Monday, February 16, 2026</b>,
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.</p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><o:p> </o:p></p>
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