ACGA suggested annuity rates effective 7/1/99
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 July 1, 1999. 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
Two tables of interest factors for computing maximum deferred gift annuity payout rates appear below. One is for use in all states other than New York and New Jersey. The other is for use in New York and New Jersey only.
One-life rates
Two-life rates
Two-life table (continued)
Recalculation factors for deferred annuity rates
Factors for use in states other than New York and New Jersey
The table of interest factors below is used to calculate the maximum deferred gift annuity rates suggested by the American Council on Gift Annuities for all states except New York and New Jersey. 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) six months before the date of first payment multiplied by the factor below for the number of whole years from the gift date to six months before the date of first payment. The suggested effective dates for these factors is July 1, 1999. They are based on a 5.75% rate of return per annum.
Factors for use in New York and New Jersey
For the first time, the ACGA released a separate table of recalculation factors for deferred gift annuities that must comply with the maximum rates set by New York and New Jersey. These factors are identical to the factors for use in other states for deferral periods up to 18 years. For deferral periods of 19 years or more, the table of factors for use in New York and New Jersey contains lower factors than the other table of factors. At these longer deferral periods, therefore, the maximum rates allowed in New York and New Jersey are lower than the ACGA's suggested maximums for all the other states.
