PERAC Memo #4 - 2014: Buyback and Make-up Repayment Worksheets

Buyback and Make-up Repayment Worksheets

Summary

This memo transmits the updated 2014 buyback/make-up calculation worksheets and cumulative interest factor sheets for use with the various buyback and make-up provisions under G.L. c. 32. Boards should use these worksheets going forward for all applicable calculations, applying buyback interest exclusively for the §4(1) provisions listed, while §3 provisions remain subject to the dual buyback/actuarial interest rules under Chapter 176 of the Acts of 2011 (per Memo #23/2012). No further action is required beyond adopting the new worksheets for 2014 calculations.

Full Text

MEMORANDUM #04, 2014 Robert B. McCarthy M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Buyback and Make-up Repayment Worksheets DATE: January 13, 2014 Enclosed are the worksheets for calculating buybacks/make-ups and the cumulative interest factor sheets for calendar year 2014. These worksheets are to be used for buybacks and make-ups to be calculated under G.L. c. 32, §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d), 3(8)(b), 4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(l¾), 4(1)(n), 4(1)(n½), 4(1)(p), 4(1)(r), 4(1)(s) and 4(2)(c) as referenced in PERAC Memos #13/2005 and #28/2008. Any buyback/make-up to be made under §§ 4(1)(g½), 4(1)(l), 4(1)(l½), 4(1)(l¾), 4(1)(n), 4(1)(n½), 4(1)(p), 4(1)(r), 4(1)(s) or 4(2)(c) will be calculated exclusively with buyback interest. Any buyback/make-up to be made under §§ 3(3), 3(4), 3(4A), 3(5), 3(6)(c), 3(6)(d) or 3(8)(b) is subject to the provisions of Section 9 of Chapter 176 of the Acts of 2011 and as such could be calculated under either buyback interest or actuarial interest. Boards should refer to PERAC Memo #23/2012 for an explanation on when to use each rate. If you have any questions or need assistance in using this form, do not hesitate to call John Boorack at 617-666-4446 ext. 935. Enclosures