GERS board authorizes $20 million second tranche of employee loan program
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Summary
The Government Employees' Retirement System Board voted to authorize a second $20 million tranche of its active personal loan program for employees, with $10 million allocated per district and conditions to be finalized, after staff reported the first tranche yielded roughly an 8% return.
The Government Employees' Retirement System Board of Trustees voted March 26 to authorize a second tranche of its active personal loan program, approving a $20 million allocation for employee loans with $10 million assigned per district and conditions to be worked out by staff.
Board staff told trustees the program, which restarted in 2024 with a $20 million tranche, has performed well and delivered roughly an 8% interest return. The proposal before trustees included operational details and timing; trustees were given the supporting packet in advance of the meeting.
Trustee Chelsea Clark moved the authorization and Trustee Chelsea Smith seconded, as recorded in the meeting minutes. Several trustees recorded affirmative votes, and the motion carried. The board also confirmed that the proposal was before the full board rather than being referred to a committee.
The authorization is subject to the conditions the board directed staff to finalize; staff said additional program mechanics and eligibility details were included in the board packet and would be distributed to trustees. The board also approved an accompanying schedule on where program funds will be allocated by district.
The board closed the public portion of its meeting to enter an executive session later in the agenda, after which the chairman and staff will complete follow-up steps on the loan program and report back to trustees.
