PERAC Memo #5 - 2022: 2022 Interest Rate set at 0.1%
2022 Interest Rate set at 0.1%
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This memo establishes the "regular interest" rate for calendar year 2022 at 0.1%, as determined by PERAC in consultation with the Commissioner of Banks pursuant to G.L. c. 32, § 22(6)(b). This rate applies to accumulated total deductions and accrued interest for regular and additional deductions made after January 1, 1984, and must be credited for all refunds, retirements, and outstanding year-end balances in 2022.
Full Text
TO: All Retirement Boards
FROM: John Parsons, Esq., Executive Director
RE: 2022 Interest Rate set at 0.1%
DATE: January 10, 2022
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 2022.
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 2022 for refunds and retirements. Such interest shall also be credited on December 31, 2022 for outstanding balances as of December 31, 2021.