PERAC Memo #2 - 2002: 2002 Interest Rate set at 1.4%
2002 Interest Rate set at 1.4%
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PERAC Memorandum #2/2002 establishes the "regular interest" rate for 2002 at 1.4%, as determined under G.L. c. 32, §22(6)(b) based on average rates from a sample of financial institutions. Boards must apply this 1.4% rate to accumulated total deductions and interest (for deductions made on or after January 1, 1946) when crediting interest for refunds and retirements processed during 2002, and on outstanding balances as of December 31, 2001, credited as of December 31, 2002.
Full Text
PERAC Memorandum # 2/2002
To: All Retirement Boards From: Joseph E. Connarton, Executive Director Re: 2002 Interest Rate set at 1.4%
Date: January 11, 2002
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 1.4% for the calendar year 2002.
The average rate 1.4% 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 2002 for refunds and retirements and on outstanding balances as of December 31, 2001 on December 31, 2002.