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There may be a two-month lag in the updating of
account balances. For example, a loan issued in March
may be based on the account balances for January.
Please be advised that any loan balance you may have
from a New York City DCP 401(k) or 457 account may
affect the loan amounts you may borrow from your
TDA account; if you have a DCP loan, your available
TDA loan amounts may differ from the estimates
provided by TRS before you apply. Also be advised that
adverse tax consequences will result if the combined
balance of your DCP and TRS loans exceeds $50,000,
which is the maximum loan amount allowable under all
public employer-sponsored programs. Please note, since
TRS must first verify your DCP loan status and balance
before determining the amount you may borrow from
your TDA account, the processing of your loan
application may be delayed.
To find out the amount you are eligible to borrow or
any loan balances, please log in to the secure section
of our website.
LOAN APPLICATIONS
If you are in active service, are on a leave of absence,
or have TDA Deferral status, you may apply for a
TDA loan on our website, provided you have registered
for secure access. Alternatively, you may file a paper
“TDA Loan Application” (code LO15). If you file for a
loan at annuitization, you must file a paper “TDA Loan
Application” or e-form equivalent.
TRS issues loans each Wednesday; the funds are
available the Friday of the same week. Loans are issued
in one of two ways:
• Electronic Fund Transfer (EFT): You may be eligible
to receive your loan via EFT if you are paid on
the City of New York payroll and receive your
paychecks through direct deposit, or if you receive
your monthly advance payments or retirement
allowance via EFT. In either case, you may elect
that your loan be forwarded via EFT to the account
where the above payments are deposited. (Note:
City University of New York (CUNY) members
paid on the New York State payroll, and Charter
School members, cannot receive loans via EFT.)
• Check: If you receive your loan by check, TRS
is not responsible for any delays or loss through
mailing. In the event of a delay or the loss of a
check, interest charges on your loan will continue
to accrue and your repayment schedule will remain
unchanged.
Since TRS issues loans on a weekly basis, TRS must
generally receive paper loan applications by the close
of business on Wednesday of the preceding week.
(If a holiday occurs during the week, TRS must receive
your paper loan application by the first business day of
the week.) Online loan applications must be received
by 11:59 p.m. on the Sunday preceding the week they
are issued.
If you apply for a TDA loan at annuitization, TRS must
receive your application no later than one business day
before your effective annuitization date. In this case,
your loan check will be issued after your effective
annuitization date (generally the third Wednesday after
your annuitization) to meet IRS requirements. You may
apply for a TDA loan after retirement only if you elected
TDA Deferral status when you filed for retirement under
the QPP. Your TDA loan amount will be debited from
your TDA account.
On the online or paper application, you may designate
how your account should be debited to provide funds
for your TDA loan. You may elect to have your account
debited in any combination of your Passport Funds,
provided you have sufficient funds in each investment
program you designate. If your election is not valid due
to insufficient funds in an investment program, or if you
do not designate how your account should be debited,
your TDA loan amount (including the service charge) will
be debited from your Passport Funds proportionately.
Generally, if you would like to change the loan amount
or repayment terms you elected on your application, you
must submit a notarized request indicating any changes
no later than the next business day after TRS receives
your loan application. However, for a loan taken at
annuitization, you have until the close of the business
day immediately preceding your effective retirement date
to submit this notarized request.
If you would like to cancel your TDA loan application,
TRS must receive a notarized “Request for Withdrawal