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New Jersey

Regulation of Charitable Gift Annuities

Degree of Regulation:

Issuance of charitable gift annuities is regulated under New Jersey State Statutes Annotated Section 17B:17-13.1.

In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:

  • have been in continuous operation for at least ten years
  • obtain a permit from the Department of Banking and Insurance
  • maintain gift annuity reserves, invested in accordance with the prudent investor standard
  • submit an annual filing to the state
  • adopt a board resolution referencing applicable state statutory provisions
  • be registered for charitable solicitation with the New Jersey Department of Law and Public Safety and to do business in the state with the New Jersey Division of Revenue (unless exempt from such registrations)

Actions Required for Exemption:

A charity must apply for a permit from the New Jersey Department of Banking and Insurance prior to issuance of any gift annuity in the state.

There is a $100 application fee.

Disclosure and Agreement Content Requirements:

The annuity agreement must include the following:

  • a misstatement of age provision (providing for corrective action if the age of the annuitant is misstated)
  • a statement that payments terminate upon the death of the annuitant or, in the case of a two life annuity, the surviving annuitant
  • an indication that New Jersey law will govern
  • a form number that includes a “publication date” (the date on which the forms were submitted to the department of insurance for approval)
  • a page number on each page, when the agreement consists of multiple pages

Reserve Requirements:

The segregated fund must maintain assets at least equal to the sum of a charity’s reserves on its outstanding gift annuity agreements plus a surplus of the greater of: (i) $100,000; or (ii) 10% of its reserves.  The reserves are to be calculated in accordance with prescribed mortality tables and discount rates.  A deduction in reserves may be made for any portion of the annuity risk that is reinsured by an authorized insurer. However, reinsurance does not relieve a charity from the $100,000 minimum surplus.  The segregated annuity reserve fund charity must be invested according to the New Jersey Prudent Investor Act.

Annual Reporting:

An annual report on the segregated reserve fund is due 120 days after the end of the calendar year, or 120 days after the end of the charity's fiscal year end if the charity has obtained permission to file on that basis. Permit holders using appropriate software, and having the technical expertise to calculate the required reserves, are not required to submit with the annual report a statement by an actuary as to the accuracy of the reserves, unless the charity has issued any deferred annuities with a flexible commencement date. When an actuary’s statement is not required, the charity instead submits a certification from an officer stating the software being used and the person responsible for calculating the reserves and their qualifications. A copy of the charity’s most recent audited financial statement must accompany the annual report.

Compliance/Enforcement:

Failure to comply with any of the statutory requirements may result in the suspension or revocation of the permit.

Links to State Regulations Pages:

New Jersey Statutes Annotated Sec. 17B:17-13.1

New Jersey State Charitable Gift Annuity Page

New Jersey Insurance Department Contact Information:

June A. Duggan
Department of Banking & Insurance
Office of Solvency Regulation
8th Floor
20 West State Street
P.O. Box 325
Trenton, NJ 08625-0325
phone: 609-292-5350 ext. 50326
e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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