PERAC Memo #9 - 2017: Buyback and Make-up Repayment Worksheets

Buyback and Make-up Repayment Worksheets

Summary

This memo distributes the 2017 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating creditable service purchases under the various subsections of G.L. c. 32, §§ 3 and 4. The memo notes that two sets of worksheets are provided for both buyback and actuarial interest due to differing investment return assumptions, and directs boards to PERAC Memo #23/2012 for guidance on when each rate applies.

Full Text

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 19, 2017

Enclosed are the worksheets for calculating buybacks/make-ups and the cumulative interest factor sheets for calendar year 2017. 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.

Note that due to the number of unique investment return assumptions there are two repayment worksheets for buyback interest and two repayment worksheets for actuarial interest.

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.