PERAC Memo #7 - 2023: 2023 Interest Rate set at 0.1%
2023 Interest Rate set at 0.1%
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This memo sets the "regular interest" rate for calendar year 2023 at 0.1%, as determined by PERAC in consultation with the Commissioner of Banks based on the average rates paid on individual savings accounts at a representative sample of at least ten financial institutions, pursuant to G.L. c. 32, § 22(6)(b). This rate applies to accumulated total deductions and accrued interest for refunds and retirements credited during 2023, and to outstanding balances as of December 31, 2022 credited on that date. No action is required of boards beyond applying this rate in their calculations.
Full Text
PERAC MEMO # 7/ 2023
M E M O R A N D U M TO: All Retirement Boards FROM: John W. Parsons, Esq., Executive Director RE: 2023 Interest Rate set at 0.1%
DATE: January 27, 2023
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 2023. 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 2023 for refunds and retirements. Such interest shall also be credited on December 31, 2023 for outstanding balances as of December 31, 2022.
/cjc p: \admin\pera & perac memos\perac memo #7 2023.docx