PERAC Memo #8 - 2004: 2004 Interest Rate set at 0.6%
2004 Interest Rate set at 0.6%
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This memo announces that PERAC has set the 2004 "regular interest" rate at 0.6%, as determined in consultation with the Commissioner of Banks per G.L. c. 32, §22(6)(b). Boards must apply this rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2004, and credit it to outstanding balances as of December 31, 2003 on December 31, 2004. No further action is required beyond correctly implementing this rate in interest calculations.
Full Text
Memorandum # 8/2004
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2004 Interest Rate set at 0.6%
DATE: January 16, 2004
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 0.6% for the calendar year 2004.
The average rate of 0.6% is to be applied on the accumulated total deductions and accrued interest. Such interest shall be credited during the calendar year 2004 for refunds and retirements. Such interest shall also be credited on December 31, 2004 for outstanding balances as of December 31, 2003.