Yr Mo Day

Yr Mo Day Year: 0 ÷ 2 0 0

Deposit Period Beginning Date: 2010 01 03 Month: 0 ÷ 2 0 0

Deposit Period Ending Date: Day: 0 ÷ 2 0

Total: 0 0 0 0 0 0

0 0 0

 

Year In Which Midpoint Falls: 0 Mo Day

12 31 #N/A

0 0 #N/A

12 31

#N/A

#N/A

#N/A

#N/A

Variable Interest Rates:

Interest Calculation Worksheet Instructions:

The steps for computing the interest on the employee’s NAREA deposit are described below. 

Using this Excel version of the worksheet, you will need only to enter the information requested in the cells that are highlighted in yellow. 

If the beginning date of the deposit period is later than January 3, 2010, you will also need to enter the appropriate starting date of the deposit period in the Deposit Period Beginning Date cells. 

Step 1: Compute the Midpoint of the Deposit Period (the date interest begins to accrue)

 a: Add beginning date of the deposit period to the ending date of the deposit period

 You will enter the ending date of the interest period (Retirement date or 12/31/2011 if the retirement date is in 2012) in the yellow hightlighted area

 b: Divide by 2

 The worksheet will calculate the midpoint of the period of service and load information into Step 2-a.

Step 2: Add interest on the Total Additional Employee Deductions Owed

 a. Determine prorated interest rate for initital calendar year

 - Step 1-b calculated the midpoint and loaded the year in which the midpoint falls, the last day of that year, the midpoint month and days and the time 

 covered by interest.

 - The worksheet then calculates the time factor using the month and days covered by interest for the initial year. 

 - In the yellow highlighted box, you will enter the Variable Interest rate for the year in which the midpoint falls.

 For2010 the variable interest rate has 3 decimal places, therefore Cells E-21 and M-17 are formatted as percentage, 3 decimal places.

 For 2011 the variable interest rate has 2 decimal places, therefore Cells E-21 and M-17 must be formatted as percentage, 2 decimal places.

 (To change the formatting from 3 to 2, right click on the Cell E-21, select format cell and change the decimal places to 2, do the same for M-17) 

 - The worksheet then calculates the Adjusted variable interest rate and loads the adjusted rate in Step 2-b.

 b. Calculate the deposit with interest

 - In the first yellow highlighted cell, you will enter the Total Additional Deductions Owed from the Deposit Worksheet , Cell I-41.

 - The worksheet then calculates the Total Additional Employee Deductions Owed with Interest for the initial year and breaks it down so that the actual interest owed is shown.

 - If additional interest is due for the second year, place the variable interest rate for that year in the yellow highlighted cell formatted to the appropriate decimal places

 - You will then place the actual interest owed into your Deposit Worksheet in either Cell I-12, Cell I-25 or Cell I-39 for the year that interest was calculated.

Total Interest Due

2010 - 3.125% 2011- 2.75% 2012 - 2.25%

Interest Due Initial Year

Interest Due Second Year

Midpoint 

(month/day):

Total Additional Employee Deductions 

Owed with initial year interest (2010-

3.125%, 2011-2.75%)

Time covered by Interest 

(for initial year of interest):

Variable Interest Rate for Second Year 

(2011-2.75%, 2012-2.25%)

Time Factor for Time Covered by Interest (SEC. 

50C1.1-1 Chart CSRS/FERS Handbook): 1.086111

Total Additional Employee Deductions 

Owed with Interest:

Calendar Year Variable Interest Rate 

(for year in which midpoint falls): #N/A

Adjusted variable interest rate for initial year #N/A

Step 2: Add Interest on the Total Additional Employee Deductions Owed

a. Determine prorated interest rate for initial year (year in which midpoint falls) b. Calculate Deposit with Interest

Total Additional Employee Deductions 

Owed (without Interest) from Deposit Calc 

Worksheet. Cell I-41: 

Last Day of Year

Adjusted Variable Interest Rate for Year 

from Step 2-a.

Midpoint:

NAREA Interest Calculation Worksheet

Employee Name: Retirement Plan:

Interest Calculation- (Highlighted yellow blocks represent where you must enter information for the calculation to be completed.) 

Step 1: Compute Midpoint of the Interest Period (the date interest begins to accrue)

a. Add Deposit Period Beginning Date to Deposit Period Ending Date b. Divide Total by 2

Total: