The MainePERS Board of Trustees establishes the rate of interest that will be paid on contribution withdrawals. For the 12-months beginning February 1, 2020, the interest rate paid on withdrawals is 1.92%.
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, 2020, the interest rate charged in these service credit purchase transactions is 3.92%.
The interest rate charged for regular service credit purchases remains tied to the earnings assumption rate used in the valuation process, which is 6.75%. This rate is also charged on benefit overpayments.
This table is a reference for the types of transactions and the corresponding interest rate.