From Our Members: Can I Borrow Money from My LAGERS Account?


from our members pic

"Can I borrow money from my LAGERS account?" We get this question frequently. The short answer is no; you cannot borrow money from your LAGERS account. LAGERS is a defined benefit plan whose plan documents do not allow a member to borrow money from their account. There are some defined contribution plans that do allow borrowing, but again, we are a defined benefit plan, not a defined contribution plan like a 401K. 

Your benefits, which are considered pre-funded, are not figured until your retire. When you retire, we use a formula (calculation) to figure out how much you will receive every month for the rest of your life. This formula is:

Your Benefit Program (benefit multiplier)


How Long You Work


How Much You Earn


Even if your employer is contributory, meaning you, as an employee, pay in 4% of your after-tax salary for you retirement plan, it is still not allowed. Your money received by LAGERS is put into a trust to pay for your future benefit. This trust will not allow for any in-service access to the money. It will be the first money paid to you in the form of a monthly benefit, a monthly benefit you will receive for life. However, if you leave employment with a LAGERS employer before your retirement age, you do have an option of receiving a refund of your contributions.

If you have further questions about this topic or any other regarding your LAGERS benefit, please contact us at




Tagged Defined Benefit, 401(k), Defined Contribution, Borrowing

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