PERAC Memo #5 - 2000: 2000 Interest Rate Set at 2.1%

2000 Interest Rate Set at 2.1%

Summary

This memo announces that PERAC has set the "regular interest" rate for calendar year 2000 at 2.1%, as determined under Section 22(6)(b) of Chapter 32 in consultation with the Commissioner of Banks. Boards must apply this 2.1% rate to accumulated total deductions and interest (for balances dating back to January 1, 1946), crediting it for refunds and retirements processed during 2000 and on outstanding balances as of December 31, 1999, to be credited December 31, 2000.

Full Text

PERAC MEMO #5/2000 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2000 Interest Rate Set at 2.1% DATE: January 13, 2000 In accordance with the provisions of Section 22(6)(b) of Chapter 32 as amended by c. 306 of the acts of 1996, “regular interest” for regular and additional deductions made after January 1, 1984, shall be a rate established by the Public Employee Retirement Administration Commission in consultation with the Commissioner of Banks, and shall be obtained from the average rates paid on individual savings accounts by a representative sample of no less than 10 financial institutions. The average rate paid has been determined to be 2.1% for the calendar year 2000. The average rate 2.1% is to be applied on the accumulated total deductions and interest made on or after January 1, 1946. Such interest should be credited during the calendar year 2000 for refunds and retirements and on outstanding balances as of December 31, 1999 on December 31, 2000.