PERAC Memo #7 - 2007: 2007 Interest Rate set at 0.6%
2007 Interest Rate set at 0.6%
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PERAC Memo #7/2007 establishes the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.6% for calendar year 2007, based on the average savings account rates from a sample of financial institutions. Boards must apply this 0.6% rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2007, and credit it to outstanding balances as of December 31, 2006 on December 31, 2007. No further board action is required beyond correctly applying this rate in calculations.
Full Text
Memorandum # 7/2007
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2007 Interest Rate set at 0.6%
DATE: January 17, 2007
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 2007.
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 2007 for refunds and retirements. Such interest shall also be credited on December 31, 2007 for outstanding balances as of December 31, 2006.