PERAC Memo #5 - 2015: 2015 Interest Rate set at 0.1%
2015 Interest Rate set at 0.1%
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PERAC Memo #5/2015 announces that, per G.L. c. 32, §22(6)(b), the "regular interest" rate for member deductions in calendar year 2015 has been set at 0.1%, based on average savings rates from a sample of financial institutions. Boards must apply this rate to accumulated total deductions and accrued interest when crediting interest for 2015 refunds and retirements, and also credit it on outstanding balances as of December 31, 2014, on December 31, 2015.
Full Text
PERAC Memo #5 / 2015
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2015 Interest Rate set at 0.1%
DATE: January 8, 2015
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 2015. 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 2015 for refunds and retirements. Such interest shall also be credited on December 31, 2015 for outstanding balances as of December 31, 2014.