PERAC Memo #6 - 2015: Buyback and Make-up Repayment Worksheets

Buyback and Make-up Repayment Worksheets

Summary

PERAC Memo #6/2015 transmits the updated buyback/make-up repayment worksheets and cumulative interest factor sheets for calendar year 2015, to be used for calculations under the various G.L. c. 32 sections referenced in prior memos. Boards should note that buybacks/make-ups under §§4(1)(g½), 4(1)(l)-(s), and 4(2)(c) must use buyback interest exclusively, while those under §§3(3)-3(8)(b) may use either buyback or actuarial interest per Chapter 176 of the Acts of 2011 (see Memo #23/2012 for guidance on rate selection). Boards should replace prior-year worksheets with the enclosed 2015 versions when performing these calculations going forward.

Full Text

PERAC MEMO # 6/2015

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 12, 2015

Enclosed are the worksheets for calculating buybacks/make-ups and the cumulative interest factor sheets for calendar year 2015. 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