Interest on Member Accounts
Your PERA Defined Benefit Plan account contains all the money you’ve contributed to PERA, and that money is only ever used to fund your retirement. As long as you keep your account with PERA, your balance will earn tax-deferred interest, compounded annually. That means your account balance will continue to grow year after year, even if you aren’t contributing to it. If you leave your PERA-covered job and refund your account, you will receive your account balance including interest, plus a potential match.
Current interest rate: 3.00%
How is the interest rate determined?
The PERA Board of Trustees is responsible for setting the interest rate every year. The Board’s policy evaluates the interest rate as a component of members’ overall retirement benefit.
The Board generally sets the interest rate in the fall, to take effect the following year.
History of Interest Rate Changes
| Dates | Interest Rate Compounded Annually |
|---|---|
| January 1, 2009-present | 3.00% |
| July 1, 2004-December 31, 2008 | 5.00% |
| January 1, 2004-June 30, 2004 | 6.80% |
| January 1, 1997-December 31, 2003 | 7.00% |
| July 1, 1995-December 31, 1996 | 6.80% |
