PERAC Memo #9 - 2005: 2005 Interest Rate set at 0.6%
2005 Interest Rate set at 0.6%
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This memo notifies retirement boards that PERAC has set the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.6% for calendar year 2005, based on average savings rates from a sample of financial institutions. Boards must apply this 0.6% rate to accumulated total deductions and accrued interest when crediting interest for 2005 refunds and retirements, and also apply it on December 31, 2005 to outstanding balances as of December 31, 2004.
Full Text
Memorandum # 9/2005
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2005 Interest Rate set at 0.6%
DATE: January 28, 2005
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 2005.
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 2005 for refunds and retirements. Such interest shall also be credited on December 31, 2005 for outstanding balances as of December 31, 2004.