PERAC Memo #14 - 2013: Follow up to PERAC Memoranda # 4/2013 and # 7/2013

PERAC MEMO # 14/2013PERAC MEMORANDUM

TO: All Retirement Boards I

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FROM: 10sep~ E. Connarton, Executive Director

RE: Follow up to PERAC Memoranda # 4/2013 and # 7/2013

DATE: March 29, 2013

On January 15,2013, PERAC issued Memorandum #7/2013 to the Retirement Boards. This memorandum reminded retirement boards that pursuant to G.L. c. 32, §3(8)(b) as amended by Section 9 of Chapter 176 of the Acts of2011, certain buybacks, depending upon a number of factors, would be calculated using actuarial assumed interest. Enclosed are the revised repayment worksheet, make up worksheet and the cumulative interest factor sheet for calendar year 2013 using actuarial assumed interest. Ifyou have any questions or need assistance in using this form, do not hesitate to call John Boorack at 617-666-4446 ext. 935. Enclosures

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PH 61766644461 FAX 61762840021 TTY 617591 89171 WWW.MASS.GOVIPERAC Actuarial Interest REPAYMENT WORI(SHEET FOR BUYBACKS IN 2013 - ACTUARIAL INTEREST For Buybacks made under G.L. c. 32 §§ 3(6)(c), 3(6)(d) and 3(8)(b) Nrune: __ .~_____________________ Social Security Number: _________________ Date of Refund: ___ ___ Investment Return Date of Repayment: Assumption: ______ Amount of Refund: $ Periods of Service Covered by Refund: Amount Of Service: From: To: -'---yrs. ____--'mos. From: To: -'---yfS. ______mos. Calculation of the Partial Year Interest Factor in the Year of Refund (lJsed in Line (2) below): Monthly Interest Factor: 7.50% 0.00625 7.75% 0.006458 7.875% 0.006563 8.00% 0.006667 8.125% 0.006771 8.25% 0.006875 8.50% 0.007083 13­ (Month of Refund) x (Monthly Factor) Interest Factor for Current Year (Used in Line (7) below): Interest rate: 7.50% 7.75% 7.875% 8.00% 8.125% 8.25% 8.50% January: 0.006250 0.006458 0.006563 0.006667 0.006771 0.006875 0.007083 February: 0.012500 0.012917 0.013125 0.013333 0.013542 0.013750 0.014167 Marcil: 0.018750 0.019375 0.019688 0.020000 0.020313 0.020625 0.021250 April: 0.025000 0.025833 0.026250 0.026667 0.027083 0.027500 0.028333 May: 0.031250 0.032292 0.032813 0.033333 0.033854 0.034375 0.035417 June: 0.037500 0.038750 0.039375 0.040000 0.040625 0.041250 0.042500 July: 0.043750 0.045208 0.045938 0.046667 0.047396 0.048125 0.049583 August: 0.050000 0.051667 0.052500 0.053333 0.054167 0.055000 0.056667 September: 0.056250 0.058125 0.059063 0.060000 0.060938 0.061875 0.063750 October: 0.062500 0.064583 0.065625 0.066667 0.067708 0.068750 0.070833 November: 0.068750 0.071042 0.072188 0.073333 0.074479 0.075625 0.077917 December: 0.075000 0.077500 0.078750 0.080000 0.081250 0.082500 0.085000 Calculation of the Repayment Amount: Year ofRefund Amount Reftmded: __________________ Partial Year Interest Factor: _________________ (2) Partial Year Interest (I) x (2): _____________(3) Balance as of 12/31/ (1) + (3): ________________ (4) From Year ofRefund to Beginning afCurrent Year Cumulative Interest Factor to 12/3112012: _____________(5) Balance as of 12/3112012 (4) x (5): _____________(6) CUrrent Year Interest Factor to End of Month: _____________(7)

Interest (6) x (7): _____________(8)

Amount ofRepayment (6) + (8): ______________(9)

P:'EXCELDIRI13refimdworksheet.xlsx

Buyback Interest 2013 MAKE-UP WORKSHEET For Make-ups under G.L. c. §§3(3), 3(4), 3(4A), 3(5), 4(1)(g%), 4(1)(1), 4(1)(1%), 4(1)(1%), 4(1)(n), 4(1)(n%), 4(1)(p),

4(1 )(r), 4(1 )(s) and 4(2)( c)

NAME __________________________________________ DED. INTEREST YEAR SALARY EARNED RATE DEDUCTIONS FACTOR AMOUNT TO BE REPAID ~ 1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

.­ 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Subtotal on 12/3112012 ________________________ CA) Monthly Interest Rate ___ (B) X ___ Months = (C) (A) X (C) (D) Grand Total 13112013 (A)+(D) P: iEXCELDIRI13refundworksheet.xlsx Actuarial Interest Cumulative Interest ·Factors for Buybacl.S/Make-Vps using the full Actuarial Interest Rates For Buybacks/Make-Ups made under G.L. c. 32 §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), 3(8)(b), 4(1)(g'h), 4(1)(1), 4(1)(1'12), 4(1)(1%), 4(1)(n), 4(1)(n'h), 4(1)(p), 4(1)(r), 4(1)(s)and 4(2)( c) Year 7.75% 7.875% 8.00% 8.125% 8.25% 8.50% 1965 29.936296 33.389680 35.259659 37.231985 39.312184 41.506076 46.259154 1966 27.847717 30.988102 32.685663 34.474060 36.358089 38.342795 42.635165 1967 25.904853 28.759259 30.299572 31.920426 33.625978 35.420596 39.295083 1968 24.097538 26.690728 28.087668 29.555950 31.099170 32.721105 36.216666 1969 22.416314 24.770977 26.037236 27.366620 28.762238 30.227349 33.379416 1970 20.852385 22.989306 24.136488 25.339463 26.600914 27.923648 30.764439 1971 19.397567 21.335783 22.374496 23.462466 24.602001 25.795518 28.354322 1972 18.044248 19.801191 20.741132 21.724506 22.753296 23.829578 26.133016 1973 16.785347 18.376975 19.227005 20.115283 21.043511 22.013467 24.085729 1974 15.614276 17.055197 17.823411 18.625262 19.462207 20.335766 22.198829 1975 14.524908 15.828489 16.522281 17.245613 17.999729 18.785927 20.459750 1976 13.511542 14.690013 15.316135 15.968160 16.647148 17.354205 18.856912 1977 12.568876 13.633423 14.198039 14.785333 15.396206 16.031598 17.379642 1978 11.691978 12.652829 13.161566 13.690123 14.239266 14.809790 16.018103 1979 10.876259 11.742765 12.200756 12.676040 13.169263 13.681099 14.763229 1980 10.117450 10.898158 11.310087 11.737074 12.179665 12.638429 13.606663 1981 9.411581 10.114300 10.484438 10.867661 11.264430 11.675223 12.540703 1982 8.754959 9.386821 9.719062 10.062649 10.417970 10.785425 11.558252 1983 8.144148 8.711667 9.009559 9.317268 9.635117 9.963441 10.652767 1984 7.575952 8.085074 8.351851 8.627100 8.911091 9.204103 9.818218 1985 7.047397 7.503549 7.742156 7.988056 8.241471 8.502636 9.049049 1986 6.555718 6.963851 7.176970 7.396348 7.622170 7.854629 8.340137 1987 6.098342 6.462971 6.653043 6.848470 7.049406 7.256008 7.686762 1988 5.672876 5.998117 6.167363 6.341176 6.519682 6.703010 7.084573 1989 5.277094 5.566698 5.717138 5.871459 6.029764 6.192157 6.529560 1990 4.908925 5.166309 5.299780 5.436536 5.576660 5.720237 6.018028 1991 4.566442 4.794718 4.912890 5.033830 5.157605 5.284284 5.546570 1992 4.247853 4.449854 4.554243 4.660954 4.770039 4.881556 5.112046 1993 3.951491 4.129795 4.221778 4.315698 4.411597 4.509521 4.711563 1994 3.675806 3.832756 3.913583 3.996017 4.080090 4.165839 4.342454 1995 3.419354 3.557082 3.627887 3.700016 3.773494 3.848350 4.002262 1996 3.180794 3.301236 3.363047 3.425941 3.489937 3.555058 3.688721 1997 2.958878 3.063792 3.117541 3.172168 3.227687 3.284118 3.399743 1998 2.752445 2.843426 2.889957 2.937193 2.985144 3.033827 3.133404 1999 2.560414 2.638910 2.678987 2.719623 2.760827 2.802612 2.887930 2000 2.381780 2.449104 2.483418 2.518169 2.553366 2.589018 2.661687 2001 2.215609 2.272950 2.302126 2.331638 2.361495 2.391703 2.453168 2002 2.061032 2.109466 2.134068 2.158924 2.184042 2.209425 2.260984 2003 1.917239 1.957741 1.978279 1.999004 2.019923 2.041039 2.083856 2004 1.783478 1.816929 1.833862 1.850930 1.868137 1.885486 1.920605 2005 1.659049 1.686245 1.699988 1.713824 1.727757 1.741788 1.770143 2006 1.543301 1.564961 1.575887 1.586874 1.597926 1.609042 1.631468 2007 1.435629 1.452400 1.460845 1.469328 1.477851 1.486413 1.503657 2008 1.335469 1.347935 1.354202 1.360489 1.366799 1.373130 1.385859 2009 1.242297 1.250984 1.255344 1.259712 1.264092 1.268480 1.277289 2010 1.155625 1.161006 1.163702 1.166400 1.169102 1.171806 1.177225 2011 1.075000 1.077500 1.078750 1.080000 1.081250 1.082500 1.085000 2012 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Monthly interest rate to be used in item (B) of the Make-up worksheet 7.75% 7.875% 8.00% 8.125% 8.25% 8.50% 0.00625 0.006458 0.006563 0.006667 0.006771 0.006875 0.007083 P: \LACELDlRiI3r~fimdworksheet.xlsx