PERAC Memo #6 - 2006: 2006 Interest Rate set at 0.6%
2006 Interest Rate set at 0.6%
View original on MA State Library →Summary
This memo notifies retirement boards that PERAC has set the "regular interest" rate for 2006 at 0.6%, as determined under G.L. c. 32, §22(6)(b) in consultation with the Commissioner of Banks. Boards must apply this rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2006, and credit it to outstanding balances as of December 31, 2005 on December 31, 2006.
Full Text
Memorandum # 6/2006
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2006 Interest Rate set at 0.6%
DATE: January 13, 2006
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 2006.
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 2006 for refunds and retirements. Such interest shall also be credited on December 31, 2006 for outstanding balances as of December 31, 2005.