Call to Action: NY Legislation on Gift Annuities
We need your help in contacting NY legislators relating to pending legislation in New York. ACGA has been working for some time to modify NY's gift annuity law relating to reinsurance of gift annuities. Currently if a charity wishes to reinsure a gift annuity, and reduce the liability in its gift annuity reserve fund, it must use a reinsurance treaty, something that is available only from a few insurers and can be costly. The pending legislation would allow a charity to purchase a commercial annuity and count it as reinsurance in offsetting the reserve obligation.
Click here to view a copy of the Assembly bill (A3783). The corresponding bill in the Senate (S3066) has already passed. What we need now is to urge the Assembly to take action on the bill. There is just one month left in the legislative session, so the time to act is now. We are asking you to call or email your Assemblymen in support of this legislation. Democratic Assemblymen are particularly key, since that party controls the Assembly. Contacting the Speaker of the Assembly's office is also critical, since ultimately the Speaker controls the movement of legislation. Speaker Sheldon Silver's office numbers are 212-312-1420 (NYC) and 518-455-3791 (Albany).
This legislation would provide all charities registered in New York with a much easier, cost-effective way to reinsure gift annuities. As a result, an organization would have an additional option for managing risk with, for example, a particularly large gift annuity, or a large concentration from one gift annuity donor within its gift annuity reserve fund.
Thank you for your assistance in moving this effort forward!
Chair, ACGA State Regulations Committee