PERAC Memo #10 - 2020: 2020 Interest Rate set at 0.1%
2020 Interest Rate set at 0.1%
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Sets the 2020 "regular interest" rate on member contributions at 0.1%, as determined by averaging rates paid on individual savings accounts at a representative sample of financial institutions per G.L. c. 32, § 22(6)(b). This rate applies to accumulated deductions and accrued interest for refunds, retirements, and year-end balances throughout calendar year 2020.
Full Text
Memorandum Memorandum #10: 2020 Interest Rate set at 0.1% Date: 01/06/2020 Referenced Sources: PERAC Website PERAC Memo #10, 2020
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TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2020 Interest Rate set at 0.1%
DATE: January 27, 2020
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 2020.
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 2020 for refunds and retirements. Such interest shall also be credited on December 31, 2020 for outstanding balances as of December 31, 2019.