PERAC Memo #6 - 2021: 2021 Interest Rate set at 0.1%
2021 Interest Rate set at 0.1%
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Sets the 2021 "regular interest" rate on member contributions at 0.1% per G.L. c. 32, § 22(6)(b). Applies to accumulated deductions and accrued interest for refunds, retirements, and December 31, 2021 year-end balances.
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Memorandum Memorandum #06: 2021 Interest Rate set at 0.1% Date: 01/19/2021 Referenced Sources: PERAC Website PERAC Memo #06, 2021
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TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2021 Interest Rate set at 0.1%
DATE: January 19, 2021
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 2021.
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 2021 for refunds and retirements. Such interest shall also be credited on December 31, 2021 for outstanding balances as of December 31, 2020.