PERAC Memo #2 - 2024: 2024 Interest Rate set at 0.1%
2024 Interest Rate set at 0.1%
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This memo sets the 2024 "regular interest" rate at 0.1% for regular and additional deductions made after January 1, 1984, as required by G.L. c. 32, § 22(6)(b). The rate is derived from the average rates paid on individual savings accounts at a representative sample of at least 10 financial institutions. Boards must apply this rate to accumulated total deductions for refunds, retirements, and year-end crediting on December 31, 2024.
Full Text
Memorandum Memorandum PERAC Memo #02: 2024 Interest Rate set at 0.1% Date: 01/05/2024 Referenced Sources: PERAC Website PERAC Memo #02, 2024
To All Retirement Boards: TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2024 Interest Rate set at 0.1%
DATE: January 4, 2024
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 2024.
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 2024 for refunds and retirements. Such interest shall also be credited on December 31, 2024 for outstanding balances as of December 31, 2023.