The Group D Cash Balance Account interest rate will be 0.20% bi-weekly, effective with the first full bi-weekly pay period after January 1, 2027.
The Cash Balance calculation is set forth in the HMEPS Pension Statute. The Cash Balance rate is equal to half of HMEPS’ five-year investment return, based on a rolling five-year basis net of investment expenses, but not less than an annual rate of 2.5% nor more than an annual rate of 7.5%, divided by 26. The five-year investment return on HMEPS’ investments as of the end of fiscal year 2026 is 10.58%, and half of that return is 5.29%, which when divided by 26 is 0.20%. The rate was approved by the HMEPS Board of Trustees at the October 2026 Board meeting.
The Cash Balance Account is provided under the HMEPS Pension Statute only to Group D members. Interest is credited bi-weekly on a Group D member’s contributions to the account, and is payable to a former Group D member with at least one year of service in the pension plan.