PERAC Memo #6 - 2023: Buyback and Make-up Repayment Worksheets
Buyback and Make-up Repayment Worksheets
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This memo transmits the 2023 buyback and make-up repayment worksheets and cumulative interest factor sheets for use in calculating buyback and make-up payments under the various creditable service provisions of G.L. c. 32. Boards should use these updated worksheets for all buyback and make-up calculations in calendar year 2023, noting that some provisions use buyback interest exclusively while others allow either buyback or actuarial interest depending on circumstances described in Memo #23/2012. Three repayment worksheets and corresponding cumulative interest factor sheets are provided for each interest type due to varying investment return assumptions.
Full Text
PERAC MEMO # 6/2023 M E M O R A N D U M TO: All Retirement Boards FROM: John W. Parsons, Esq., Executive Director RE: Buyback and Make-up Repayment Worksheets DATE: January 23, 2023 Enclosed are the worksheets for calculating buybacks/make-ups and the cumulative interest factor sheets for calendar year 2023. 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 three repayment worksheets for buyback interest, three repayment worksheets for actuarial interest, two pages of cumulative interest factors for buyback interest and two pages of cumulative interest factors for actuarial interest. If you have any questions or need assistance in using these forms, do not hesitate to call John Boorack at 617-666-4446 ext. 935. Enclosures JWP/cjc p:\admin\pera & perac memos\perac memo #6 -2023.docx FIVE MIDDLESEX AVENUE, SUITE 304 | SOMERVILLE, MA 02145 PH 617 666 4446 | FAX 617 628 4002 | TTY 617 591 8917 | WWW.MASS.GOV/PERAC PERAC Auditor SUZANNE M. BUMP | KATHLEEN M. FALLON | KATE FITZPATRICK | JAMES J. GUIDO | RICHARD MACKINNON, JR. | JENNIFER F. SULLIVAN, ESQ. JOHN W. PARSONS, ESQ., Executive Director COMMONWEALTH OF MASSACHUSETTS | PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION PHILIP Y. BROWN, ESQ., Chair