PERAC Memo #8 - 2019: 2019 Interest Rate set at 0.1%
2019 Interest Rate set at 0.1%
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PERAC has set the regular interest rate for 2019 at 0.1% per G.L. c. 32, §22(6)(b), based on the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. This rate applies to accumulated total deductions and accrued interest for refunds and retirements processed during calendar year 2019, and will also be credited on December 31, 2019 for outstanding balances as of December 31, 2018.
Full Text
M E M O R A N D U M
TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2019 Interest Rate set at 0.1%
DATE: January 22, 2019
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 2019.
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 2019 for refunds and retirements. Such interest shall also be credited on December 31, 2019 for outstanding balances as of December 31, 2018.