At its April 2, 2008 meeting, the ACGA Rates Committee has recommended and the ACGA board approved a new, lower schedule of gift annuity rates for immediate gift annuities, effective on July 1, 2008. In addition, the deferred gift annuity rates which became effective on July 1, 2006 will also be lower.
PGDC Comment:
Following is a sample of current and newly approved suggested rates that take effect July 1, 2008:
Immediate Payment Annuity - Single Life
| Age | Current Rate |
New Rate |
Difference |
|
50 |
5.3% | 5.1% | -.2% |
| 60 | 5.7% | 5.5% | -.2% |
| 70 | 6.5% | 6.1% | -.4% |
| 80 | 8.0% | 7.6% | -.4% |
| 90 | 11.3% | 10.5% | -.8% |
Immediate Payment Annuity - Two Lives
| Age | Current Rate |
New Rate |
Difference |
| 50/50 | 4.7 | 4.4 | -.3% |
| 60/60 | 5.4 | 5.2 | -.2% |
| 70/70 | 5.9 | 5.6 | -.3% |
| 80/80 | 6.9 | 6.6 | -.3% |
| 90/90 | 9.3 | 8.7 | -.6% |
The compound interest factor for deferred charitable gift annuities (for all states except New York and New Jersey is reduced from 1.0525 to 1.0475).
For a complete overview of current and new rates, go to:
http://www.acga-web.org/giftrates.html
A newly updated primer on charitable gift annuities can be found in the Technical Reports section of this site.