Memorandum  #10: 2020 Interest Rate set at 0.1%

Date:	01/06/2020
Referenced Sources:	PERAC Website

PERAC Memo #10, 2020

To All Retirement Boards:

M E M O R A N D U M

TO:                All Retirement Boards

FROM:          John W. Parsons, Esq., Executive Director

RE:                2020 Interest Rate set at 0.1%

DATE:           January 27, 2020

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 2020.

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 2020 for refunds and retirements. Such interest shall also be credited on December 31, 2020 for outstanding balances as of December 31, 2019.

Commission Members

Philip Y Brown, Esq., Chairman
Auditor Suzanne M. Bump
Kathleen M. Fallon
Kate Fitzpatrick
James M. Machado
Robert B. McCarthy
Jennifer F. Sullivan