The MainePERS Board of Trustees establishes the rate of interest that will be paid on contribution withdrawals. For the 12-months beginning February 1, 2023, the interest rate paid on withdrawals is 3.88%.
This interest rate influences the cost of certain types of military and judicial service credit purchases because what is charged on those transactions is capped at 2% above the rate set by the Board. As a result, for the 12-months beginning February 1, 2023, the interest rate charged in these service credit purchase transactions is 5.88%.
The interest rate charged for regular service credit purchases is now 6.5%. This rate remains tied to the earnings assumption rate used in the valuation process, but cannot be more than five (5) percentage points above the rate paid on withdrawals. This rate is also charged on benefit overpayments.
This table is a reference for the types of transactions and the corresponding interest rate.