Board of Trustees establishes the rate of interest that will
be paid on contribution withdrawals. For the 12-months
beginning February 1, 2017, the interest rate paid on
withdrawals is 2.45%.
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, 2017, the interest rate charged in
these service credit purchase transactions is 4.45%.
The interest rate charged for regular service credit
purchases remains tied to the earnings assumption rate used
in the valuation process, which is 6.875%.
This rate is also charged on benefit overpayments.
This table is a reference for the types of transactions and
the corresponding interest rate.