Board Sets Interest Rates, Elects Leadership for Upcoming School Year

Interest Earned on Contributions

At its April meeting, the PSRS/PEERS Board of Trustees voted to set the interest rate for active members’ contributions at 3.5% for the 2025-2026 school year.

Interest is added to memberships on June 30 each year. Interest is calculated on the total amount in the membership as of the previous June 30. The total amount includes both original contributions and previous interest earned. Interest payments continue until the membership is terminated. Memberships can be terminated for several reasons: retirement, a refund of a member’s contributions and interest, the member’s death, or if the member is not vested and has been out of covered employment for five straight school years.

The interest rate does not affect a member’s monthly retirement benefit. However, it does matter if a member receives a refund of their contributions, which is paid with interest as a lump-sum payment. It also matters when a beneficiary receives a lump-sum payment after a member’s death.

The PSRS/PEERS Board of Trustees sets the contributions interest rate each April. The Board bases the rate on interest rates for deposit accounts and short-term securities.

Interest Charged on Reinstatements and Service Purchases

The Board also voted to keep the interest rate for reinstating previously forfeited service and applicable service purchases at 7.3%. This rate is the Systems’ target rate of return on investments.

Knes and Park Re-Elected to Leadership Positions

In other action taken at the April Board meeting, trustees voted to re-elect Beth Knes as chair and Dr. Eric Park as vice chair for the 2025-2026 school year (July 1, 2025, to June 30, 2026).

Knes is a governor-appointed trustee who joined the Board in 2017. She retired from public education in 2014 with more than 20 years of service.

Dr. Park is a governor-appointed trustee who joined the Board in 2021. He is an investment professional with 30 years of experience and is co-founder of an LPL Financial office in Washington, Missouri.

“Both Beth and Eric provide thoughtful, effective leadership for the Board and for the Retirement Systems,” said PSRS/PEERS Executive Director Dearld Snider. “We look forward to their future contributions to the Systems as Board chair and vice chair.”