Suggested Maximum Rate Schedules Effective July 1, 2011
Approved by the American Council on Gift Annuities on April 4, 2011
Information last updated October 12, 2010
In April, the Board of Directors of the American Council on Gift Annuities (ACGA) approved a new schedule of suggested maximum gift annuity rates for gifts established on or after July 1, 2011. The new schedule reflects (1) the Council’s long-standing residuum target of 50%, with an additional requirement that the present value of the residuum be at least 20% of the gift amount; (2) the results of a recent study on charitable gift annuitant mortality conducted by the ACGA’s actuarial consultants, the Hay Group, and (3) a more conservative investment return assumption.
Generally speaking, the new rate schedule contains slightly lower rates for single-life annuities for ages 69 and younger, and slightly higher rates for single-life annuities at ages 75 and older. Similar changes apply to 2-life gift annuity rates.
The ACGA Rates Committee has prepared this report to explain the reasoning used in establishing suggested charitable gift annuity rates. Detail in this report goes beyond the assumptions used in arriving at the rates. The report provides historical background, statistical information, rationale behind the assumptions and more. This report is available electronically to our members at no charge.
Click here to download a copy of the rates report.