Do you have a UC 403(b) Plan loan? Here’s what you need to know.

UC has updated the repayment method for UC 403(b) Plan loans. Effective Wednesday, April 8, 2026, UC 403(b) Plan loan repayments must be made through Fidelity’s Automated Clearing House (ACH) service, which deducts payments directly from the borrower’s bank account. Previously, employees with an outstanding UC 403(b) Plan loan had their repayments deducted from their paycheck and applied directly to their retirement account.

To keep your 403(b) Plan loan in good standing, you must set up ACH repayments by May 20, 2026. As part of this process, you must add your bank account information and select a monthly debit date in Fidelity NetBenefits® at www.netbenefits.com or by calling Fidelity at 1‑866‑682‑7787. If you are paid biweekly, loan repayments will change from a biweekly payroll deduction to a monthly ACH debit. 

Important reminder about missed 403(b) loan repayments

If you do not establish ACH loan repayment, your 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 your eligibility to request additional loans.

Participant questions

If you have questions about this transition or how to set up ACH loan repayments, you may call a Fidelity representative at 1‑866‑682‑7787. Representatives are available Monday to Friday, 5:30 a.m. to 5 p.m. Pacific Time.

Communications and resources

Fidelity began sending communications about the UC 403(b) Plan loan repayment change to affected employees in February and will continue through September 2026. Instructions on how to set up or verify their ACH loan repayments are available on myUCretirement.com.