PERAC Memo #6 - 2003: 2003 Interest Rate set at 1.0%
2003 Interest Rate set at 1.0%
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This memo notifies boards that PERAC, per G.L. c. 32, §22(6)(b), has set the 2003 "regular interest" rate at 1.0%, based on average savings rates from a sample of financial institutions. Boards must apply this 1.0% rate to accumulated total deductions and accrued interest when crediting interest on 2003 refunds and retirements, and must also credit it to outstanding balances as of December 31, 2002 on December 31, 2003.
Full Text
Memorandum # 6/2003
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2003 Interest Rate set at 1.0%
DATE: January 15, 2003
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 1.0% for the calendar year 2003.
The average rate of 1.0% is to be applied on the accumulated total deductions and accrued interest. Such interest shall be credited during the calendar year 2003 for refunds and retirements. Such interest shall also be credited on December 31, 2003 for outstanding balances as of December 31, 2002.