PERAC Memo #7 - 2016: 2016 Interest Rate set at 0.1%
2016 Interest Rate set at 0.1%
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PERAC Memo #7/2016 establishes the "regular interest" rate under G.L. c. 32, §22(6)(b) at 0.1% for calendar year 2016, 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 when crediting interest on refunds and retirements processed during 2016, and also apply it to outstanding balances as of December 31, 2015 when crediting interest on December 31, 2016. No further action beyond correct application of this rate is required.
Full Text
PERAC MEMO # 7 / 2016
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: 2016 Interest Rate set at 0.1%
DATE: January 14, 2016
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 2016. 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 2016 for refunds and retirements. Such interest shall also be credited on December 31, 2016 for outstanding balances as of December 31, 2015.