PERAC Memo #7 - 2001: 2001 Interest Rate set at 1.9%

2001 Interest Rate set at 1.9%

Summary

PERAC Memo #7/2001 announces that the "regular interest" rate under G.L. c. 32, §22(6)(b) for calendar year 2001 has been set at 1.9%, based on average savings account rates from a sample of financial institutions. Boards must apply this rate to accumulated total deductions and interest (for balances dated on or after January 1, 1946) when crediting interest on refunds and retirements processed during 2001, and on outstanding balances as of December 31, 2000, credited December 31, 2001.

Full Text

PERAC MEMO # 7/2001 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2001 Interest Rate set at 1.9% DATE: January 18, 2001 In accordance with the provisions of G.L. c. 32, § 22(6)(b) “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 1.9% for the calendar year 2001. The average rate 1.9% 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 2001 for refunds and retirements and on outstanding balances as of December 31, 2000 on December 31, 2001.