Military Mutual Aid Association Raises Rates... Pension-Style Installment Benefits Up from 4.9% to 5.1%

"Improving Member Benefits Amid Rising Interest Rates"

The Military Mutual Aid Association will raise the interest rates on its Lump-Sum Deposit Savings and Pension-Style Installment Benefits by up to 0.20 percentage points. The rate for Pension-Style Installment Benefits will increase from 4.90% to 5.10% per year, while the rate for the two-year deposit-type Lump-Sum Deposit Savings product will rise from 4.60% to 4.80% per year.

Lump-Sum Deposit Savings is a savings product in which members deposit a lump sum with the association and earn interest. Pension-Style Installment Benefits allow members to receive their benefits in installments rather than as a lump sum upon discharge or retirement.

On October 26, the Military Mutual Aid Association said its board of directors recently decided to raise the interest rates on Lump-Sum Deposit Savings and Pension-Style Installment Benefits by up to 0.20 percentage points.

The decision aims to improve member benefits amid volatility in commercial bank interest rates and to ensure the stable management of the fund. For deposit-type Lump-Sum Deposit Savings, this is the second rate increase this year, following the increase on July 1.

With this increase, the rates for enlisted-member savings (flexible installment type), active-duty and reserve-member savings (installment type), and pension-type products will rise by 0.10 percentage points to 5.00% per year, compounded annually.

The rates for deposit-type and group deposit-type products have each been raised by 0.20 percentage points: the one-year rate is now 4.60% per year, and the two-year rate is 4.80% per year, both with annual simple interest. The rate for the six-month product, at 3.90% per year, remains unchanged. Pension-Style Installment Benefits, which provide regular installment payments of living expenses after discharge, will be subject to a rate of 5.10% per year, compounded annually, following an increase of 0.20 percentage points.

The effective date varies by product. The increased rate for Lump-Sum Deposit Savings will take effect on November 1, 2026, while the increased rate for Pension-Style Installment Benefits will take effect on January 1, 2027.

The rate change also applies differently to existing members, depending on the product type. For enlisted-member savings (flexible installment type), active-duty and reserve-member savings (installment type), pension-type Lump-Sum Deposit Savings, and Pension-Style Installment Benefits, the increased rate will apply to existing members starting on the date the rate changes.

By contrast, the increased rates for deposit-type and group deposit-type products will apply only to accounts opened on or after November 1, 2026. Accounts opened by October 31 will retain the rate in effect when they were opened until maturity.

The Military Mutual Aid Association said, "We expect this rate increase to make a significant contribution to securing a stable income in retirement after discharge."

This content was produced with the assistance of AI translation services.