WHY RETIREMENT LOAN ERASER “RLE”
We understand that unexpected life changes, like job loss or disability, create immense financial stress for those impacted. Retirement Loan Eraser helps to support plan participants during the most difficult times.
Retirement Loan Eraser uses insurance to help repay plan loans when participants are unable to do so after losing their jobs. It protects 401(k) loans against defaults caused by involuntary job loss.






How Retirement Loan Eraser works
When participants lose their jobs, they may not be able to make their loan payments, putting their retirement accounts at risk. Retirement Loan Eraser is an automated, low-cost program that helps repay participants’ outstanding loans upon default and in the event of death or disability, to restore their 401(k) accounts in full.


Loan defaults hurt retirement readiness
Research shows that 86% of participants default on their retirement plan loans post separation, and that leakage from loan defaults is expected to be $2.5 trillion over ten years – representing about $300,000 in lost retirement security to the average participant.


Leakage exposes plan sponsors to fiduciary risk
Under ERISA, loans must be managed with the same prudence and oversight required of any plan investment. However, loans default at alarming rates, especially when participants lose their jobs. Industry experts believe that 401k loan defaults represent a ripening fiduciary jeopardy.


Help employees “keep their balance” with RLE
When employees lose their jobs, they may not be able to make their loan payments, putting their retirement plans at risk. RLE is an automated, low-cost program that helps repay an employee’s outstanding loan upon default and in the event of death or disability, restores their 401k account in full.

