PERAC Memo #5 - 2012: 2012 Interest Rate set at 0.1%
2012 Interest Rate set at 0.1%
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PERAC Memo #05/2012 establishes the "regular interest" rate for 2012 at 0.1%, as determined under G.L. c. 32, §22(6)(b) based on average savings account rates from a sample of financial institutions. Boards must apply this 0.1% rate to accumulated total deductions and accrued interest for refunds and retirements processed during 2012, and credit it to outstanding member account balances as of December 31, 2011 on December 31, 2012.
Full Text
MEMORANDUM #05, 2012 Gregory R. Mennis M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2012 Interest Rate set at 0.1% DATE: January 11, 2012 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 0.1% for the calendar year 2012. The average rate of 0.1% is to be applied on the accumulated total deductions and accrued interest. Such interest shall be credited during the calendar year 2012 for refunds and retirements. Such interest shall also be credited on December 31, 2012 for outstanding balances as of December 31, 2011.