PERAC Memo #1 - 2025: 2025 Interest Rate set at 0.1%
2025 Interest Rate set at 0.1%
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This memo sets the 2025 '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, 2025.
Full Text
Memorandum TO: All Retirement Boards
FROM: Bill Keefe, Executive Director
RE: 2025 Interest Rate set at 0.1%
DATE: January 6, 2025
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 2025.
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 2025 for refunds and retirements. Such interest shall also be credited on December 31, 2025 for outstanding balances as of December 31, 2024.