ACGA suggested annuity rates effective 2/1/09



The tables below display the maximum payout rates that the American Council on Gift Annuities suggest charities should offer their gift annuity donors for gifts made on or after February 1, 2009. These rates are used as guidelines by members of the ACGA for offering annuity rates to potential donors. The rates are actuarially determined with the goal of having at least half of the gift asset passed on to the charity (the residuum).

Interest factors for computing deferred annuity payout rates
A table of interest factors for computing maximum deferred gift annuity payout rates appears below. It is for use in all states, including New York and New Jersey. In past years, a separate table has been issued for use in New York and New Jersey only, but as of this writing, the ACGA has not issued a separate table for this purpose.

The table assumes a whole number of years from the date of gift to the annuity starting date. The ACGA suggests that fractional years of deferral be taken into account in computing the interest factor. An example of a fractional year factor calculation is included with the table of whole year factors.

One-life rates


Two-life rates


Two-life table (continued)


Two-life table (continued)


Recalculation factors for deferred annuity rates


Factors for use in all states, including New York and New Jersey
A deferred interest factor is used to calculate the maximum deferred gift annuity rates suggested by the American Council on Gift Annuities for all states. The maximum deferred gift annuity rate equals the suggested rate from the one-life or two-life table for the age(s) of the annuitant(s) on the annuity starting date multiplied by the deferred interest factor determined as follows:

For deferral periods of any length, the factor equals 1.0425 raised to the exact number of years from the date of gift to the annuity starting date.

 Deferral period Interest rate

 all years 4.25%

The suggested effective date for these factors is February 1, 2009.


Joe Donor funds a deferred gift annuity on 7/15/2009 that will make its first quarterly payment on 6/30/2019. Payments are made at the end of each period. Joe will be the sole annuitant and was born on 6/20/1954. To compute the payout rate to offer Joe based on the ACGA's recommendations that went into effect on 2/1/2009:


1.  Determine Joe's age on his closest birthday to 4/1/2019, the annuity starting date for an annuity that pays quarterly, starting on 6/30/2019. Joe's closest birthday to 4/1/2019 is 6/20/2019 and he will be 65 on that birthday. The unadjusted ACGA rate for a single 65 year-old is 5.3%.

2.  The number of years from the date of gift, 7/15/2009, to the annuity starting date, 4/1/2019, is:

 170/365 + 9 + 91/365 = 9.7151 years

The interest factor suggested by the ACGA for 9.7151 years of deferral is:

 ((1.0425) ^ 9.7151) = 1.4983

3.  5.3% x 1.4983 = 7.9412%. After rounding to the nearest 0.1%, the payout rate suggested by the ACGA for Joe's deferred gift annuity is 8.0%.

The table of interest factors below shows the factors applicable for whole years of deferral.



Copyright 2023 PG Calc Incorporated