July 18, 2017
Hall lawsuit interest payment info available for employers
PSPRS posts prejudgment awards for EORP lawsuit
PSPRS was informed last week that the Hall case has finally come to a conclusion. As such, prejudgment interest was awarded at 4.25% up through June 28, 2017. Those interest amounts have been calculated and updated to the Employer and Local Board portals today. As a reminder, the prejudgment interest amounts will be included in the credit amounts available for your use.
The post-judgment interest rate has been determined to be 5.25% where each employer will need to calculate those individual amounts. As a reminder, the post-judgment interest amounts will not be included in the credits available.
To calculate the post-judgment interest, you may use the following formula:
Post-judgment Interest Amount = Total of Contributions and Pre-judgment Interest x .0525 x Number of Days Between June 29 and Payout / 365
This should obviously be calculated on an individual basis for each of your members. Also, this formula assumes you will pay out the contributions and the interest on the same day. If you are planning to pay them out separately, then apply the same formula to the separate amounts (the only difference will be the “number of days between June 29 and payout”).
Now that the Hall case is officially over, the courts have begun to address the Parker case for PSPRS members. While the remedies will be similar as to the statutory reference for the amount of interest, the actual rate applied to pre-judgement interest could be different. Therefore, we appreciate your patience as this case is adjudicated to completion.