PERAC Memo #10 - 2018: 2018 Interest Rate set at 0.1%
2018 Interest Rate set at 0.1%
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This memo establishes the 2018 regular interest rate at 0.1% under G.L. c. 32, § 22(6)(b), determined from the average rates paid on individual savings accounts at a representative sample of financial institutions. This rate applies to accumulated deductions for refunds and retirements during 2018 and is credited on December 31, 2018 for balances outstanding as of December 31, 2017.
Full Text
M E M O R A N D U M
TO: All Retirement Boards
FROM: Joseph E. Connarton, Executive Director
RE: 2018 Interest Rate set at 0.1%
DATE: January 26, 2018
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 2018.
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 2018 for refunds and retirements. Such interest shall also be credited on December 31, 2018 for outstanding balances as of December 31, 2017.