The base rate of return to be paid on Tax Deferred and Benefit Accumulation accounts has been set at 3.5 percent and 3.0 percent, respectively, effective July 1. The Board of Directors of the Pension Fund set the new rates at the board’s meeting on June 17-19. The base rates will be effective through Dec. 31. During the first six months of 2009, the base rate has been 4.0 percent.
"While the Pension Fund had achieved a positive return through May 31, the approved rates reflected favorably in the current uncertain economic climate," Senior Vice President, Treasurer and Chief Financial Officer, Richard Cohee, told the directors. Board policy uses a formula which blends current and historical rates as the basis for its rate determination. It will consider the rate for 2010 at its next meeting in November. For more, see: www.pensionfund.org