Interest Rates

The MainePERS Board of Trustees establishes the rate of interest that will be paid on contribution withdrawals. For the 12-months beginning February 1, 2025, the interest rate paid on withdrawals is 4.58%.

The interest rate charged for regular service credit purchases remains at 6.5%. This rate is 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.

Since the difference between the new regular interest rate (4.58%) and the discount rate (6.5%) is less than 2%, the interest rate for certain types of military and judicial service credit purchases that had been capped at 5.88% are no longer capped.  As a result, for the 12-months beginning February 1, 2025, the interest rate charged in these service credit purchase transactions is 6.5%.

This table is a reference for the types of transactions and the corresponding interest rate.