Based on UMF Finance Committee review and in consideration of declining interest rates and volatile investment markets, the guaranteed annual interest rate for demand funds (crediting rate) has been changed to .5% (from 2%) effective February 1, 2008.
The policy for unspent available funds in endowment or quasi-endowment funds has been clarified as follows:
"The annual interest rate paid on unspent available dollars in endowment or quasi-endowment funds will be limited to the investment earnings of the current fiscal year up to the established crediting rate." (To clarify, if there is a negative investment return, the available balance portions of endowments and quasi-endowments would not receive a return at all.)
The crediting rate will be reviewed for adjustment on a quarterly basis.
If you have questions, please contact Gracie Davenport at 612-624-0346.