Loan and Hardship Withdrawal – Eligibility Certificate Instructions

Beginning April 7, 2010, active and separated HISD employees must obtain an Eligibility Certificate for all loan, and hardship withdrawal requests initiated under the HISD 403(b) and 457(b) retirement plans. The Eligibility Certificates are generated only through Retirement ManagerSM and replace the need for a Plan Administrator’s Signature on the transaction forms.
Loan and hardship withdrawal transactions are allowed under very specific rules as determined by the Internal Revenue Code (IRC). Hardship withdrawals only apply to active employees under age 59 1/2. Separated employees or active employees age 59 ½ and over may withdraw from the 403(b) plan at any time. To determine your eligibility for a loan, or hardship withdrawal please visit the Retirement ManagerSM website via the following link, click on the ‘Disbursements’ tab and follow the prompts to access an Eligibility Certificate. Your investment provider will require an Eligibility Certificate before processing your request for a loan, or hardship withdrawal.
The attached Retirement Manager Disbursement Eligibility Certificate - Employee Guide contains all information and instructions necessary to request a loan, or hardship withdrawal Eligibility Certificate. A brief Loan & Hardship Presentation tutorial is also available online. For questions and assistance with generating an Eligibility Certificate from Retirement Manager, please contact your investment provider.
In order to comply with new IRC rules, loan and hardship transactions from the HISD 403(b) or 457 retirement plans are only allowed through eligible providers able to share required data with HISD’s retirement plan administration platform, Retirement Manager. Some investment provider contracts do not offer loans or hardship withdrawals. Employees may initiate an in-service exchange of funds to an eligible provider that offers loans, or hardship withdrawal transactions, and request a loan or hardship from that provider. Investment provider deferred sales charges and early withdrawal penalties may apply. Please contact the investment providers for loan and hardship availability. The provider list may change without notice. 
The following are the steps to guide you through the process:
Step 1: Contact your 403(b) or 457 plan investment provider and request the Loan, or Hardship withdrawal forms. Some investment providers do not offer loans, or hardship withdrawals.
Step 2: Access your Loan or Hardship Eligibility Certificate through Retirement Manager, and print. ALL CERTIFICATES MUST HAVE A CERTIFICATE NUMBER AT THE TOP OF THE PAGE.
Step 3: Complete your investment provider’s loan or hardship application forms.
Step 4: Submit all required documents* to the investment provider processing a loan or hardship.
 *Required documents typically include:
1. Investment provider loan or hardship application.
2. Loan or Hardship eligibility certificate generated and printed from Retirement Manager.
3. Supporting documentation is required for hardship withdrawal requests, as required by
the investment provider. 
Tax-deferred retirement programs like 403(b) and 457(b) plans serve to supplement employer-sponsored pension plans such as the Teacher Retirement System of Texas (TRS). The employer sponsored 403(b) and 457(b) retirement plans are designed for long-term retirement planning and growth. However, if saving for short-term expenses or emergencies, employees are encouraged to use a savings method other than the 403(b) or 457 plans.