The Teachers' Retirement Board of Directors at its June 24, 2009 meeting, adopted an interest rate of 3.7% to be credited to the Regular Account and the Supplemental Account (pre 1989 1% Contributions, if applicable) on June 30, 2009.  This interest rate will be applied to the June 30, 2008 balances.  It will also be prorated and applied to service purchases.  This rate will be reduced by .25 percent and the results will be applied to regular and supplemental account balances on a prorated basis if withdrawn from the system thru June 30, 2010.

The Board had previously changed the method of calculating the return on the Voluntary Account from a smoothed rate of return (an average, of sorts) to an investment rate of return (actual investment results for the current year) effective July 1, 2007.  The Board adopted an investment rate of return of -20.9% to be applied to Voluntary Account balances on June 30, 2009.  This investment rate of return will be applied to the June 30, 2008 balances.