Conference 7.286::digital

2028.0. "SERP causes SAVE rate to fall?" by MRKTNG::SILVERBERG (Mark Silverberg DTN 264-2269 TTB1-5/B3) Fri Jul 31 1992 09:12

 Digital - Interest rate revised on SAVE Plan's Fixed Interest Fund
	{Livewire, U.S. News, 30-Jul-92}
   Previously, Digital communicated that the estimated blended interest rate 
 for Digital Equipment Corporation Savings and Investment (SAVE) Plan's Fixed
 Interest Fund (Fund A) would be 8.13% for the period April 1, 1992 through
 September 30, 1992. However, because of the Special Early Retirement Program
 (SERP), an unusually large sum of money was transferred into the SAVE Plan on
 July 1. As a consequence, Digital was required to negotiate a new contract in
 which to invest this sum. The new contract resulted in a revised blended rate
 of 7.99% for the period July 1 through September 30, 1992. 
   The SAVE Plan's Fund A is comprised of several insurance investment 
 contracts (IICs) and bank investment contracts (BICs). To obtain these 
 investment contracts, Digital solicits bids from insurance companies, banks,
 and other financial institutions whose credit rating is AAA or from banks 
 whose credit rating is AA- or better and offer FDIC insurance on our
 investments. While these investment contracts mature over varying time
 periods, the average maturity of the entire fund is three years.
   New rates for Fund A will take effect on October 1, 1992. To receive Fund A
 interest rate information, enroll in the plan, or make contribution changes, 
 employees may use the Touch Tone (TM) System by dialing DTN 223-6000. The 
 next deadline for any SAVE transactions is September 15, 1992.
 ---       
 Touch-Tone is a trademark of AT&T.

    Gee, while 8.13% to 7.99% isn't much of a drop, and the rate is
    real good compared to recent CD & passbook rates, I wonder if the rate
    would have gone UP if people took money OUT instead of putting it in?
    8^)
    
    Mark
    

    Is anyobody out there? I sent mail with questions to SAVE @MSO, like
    the nice investers hotline says to do. They garuantee 24hr turnaround 
    on email. I have the delivery receipt, but no read receipt and no
    response, several days later. I would at least feel better if I knew
    someone had at least read it!
    
    Anyone know who moinitors this account?
    
    Dave