Buyback Interest
Instructions to Manually Complete Repayment Worksheet for Buybacks in 2007 For Buybacks under G.L. c. 32 §3(6)(c), 3(6)(d) and 3(8)(b)

Use this worksheet to calculate the dollar amount a member must pay to buy back the creditable service associated with annuity savings fund balances that were previously refunded to the
member.

Please note this worksheet assumes a one-time or lump sum repayment. Payments can also be made on an installment basis. Such payments must be calculated and rendered in accordance with the terms and conditions of a respective retirement board.

• Enter the Name of the member for whom the buy-back is being calculated.

• Enter the member’s Social Security Number.

• Enter the Date of the Refund.

• Enter the Amount of the Refund.

• Enter the Date of Repayment.

• Entry of the Periods of Service Covered by the Refund and the corresponding Amount of Service is optional.

In the section, Calculation of the Partial Year Interest Factor in the Year of Refund:

• Subtract the month of the Date of Refund from 13.
• Multiply the result by the Monthly Interest Factor.
                (The Monthly Interest Factor can be found on the Cumulative Interest Factorspage.)

Example: For a refund issued in September of 1995 where the actuarial assumed rate of interest (investment return assumption in the most recent actuarial valuation) is 8%

13 -            9           =       4       x      0.003333                 = 0.013332
      Month of Refund                     Monthly Interest            Partial Year
                                                            Factor                    Interest Factor

In the section, Calculation of the Repayment Amount:

Year of Refund

• Enter the Amount of the Refund on Line 1.
• Enter the Partial Year Interest Factor for the Year of Refund on Line 2.
• Multiply the Amount of the Refund (Line 1) by the Partial Year Interest Factor (Line 2) and enter the result on Line 3.
• To obtain the Balance as of 12/31 of the Year of Refund (Line 4), add the Amount of the Refund (Line 1) to the Partial Year Interest (Line 3). Enter the result on Line 4.

From Year of Refund to Beginning of Current Year

• To obtain the Cumulative Interest Factor to the Current Year (Line 5), select the Cumulative Interest Factor for the year of the Date of Refund from the Column corresponding to the actuarial assumed rate of interest for your system and enter it on Line 5.

• To obtain the Balance as of 12/31/06 (Line 6), multiply the value you entered on Line 4 by the value you entered on Line 5 and enter the result on Line 6.

Current Year

• Select the Interest Factor to the End of the Month from the Interest Factor for the Current Year chart in the middle of the worksheet for the column that corresponds to the actuarial assumed rate of interest for your system. Select the factor for the month of the Date of Repayment and enter it on Line 7.

• To calculate the Interest (Line 8), multiply the value you entered on Line 6 by the value you entered on Line 7 and enter the result on Line 8.

• To calculate the Amount of Repayment (Line 9), add the value you entered on Line 6 to the value you entered on Line 8 and enter the amount on Line 9.

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