Interest Rates on Specific Products to Increase on July 1
We are excited to announce that the interest rates for our legacy products, the Tax-Deferred Retirement Account 403(b) (TDRA) and Benefit Accumulation Account (BAA) are increasing to 4.0% and 3.0%, respectively. The interest rates for our newer products, the Traditional and Roth IRAs and 457(b) remain at 3.5%. The new interest rates take effect on July 1, 2021. Base rates are determined and published each quarter. The rationale for the current increase in interest rates is based on our year-to-date market performance and funding levels.
The Pension Fund Board of Directors will consider Good Experience Credits (GEC) for these products at their meeting this November. In awarding a GEC, the board will review the Sept. 30 financial status of each product. If approved, this one-time additional interest credit would be reflected in member account balances by Dec. 31.
Each product has a different funding status based on several factors including investment returns, base rate of interest, and fund inflows/outflows. The legacy products have a high threshold for awarding a GEC based on the size of the assets under management and the historic funding status.
We are grateful to be serving you!
Rev. Dr. Todd A. Adams
President and CEO