Good News About New York Maximum Annuity Rates for Q3 2022

There is good news for charities that issue annuities in New York! The maximum annuity rates allowed by New York for gift annuities issued to a New York donor in the third quarter of 2022 increased significantly from their second quarter levels. They increased enough, in fact, that New York’s maximum single-life annuity rates for Q3 2022 are higher than the corresponding ACGA rates for all male and female ages, even though the ACGA suggested maximum rates increased as of July 1. This means charities can offer the ACGA rates to New York donors of single-life annuities funded from July 1, 2022 to September 30, 2022, regardless of the annuitant’s age and gender.

We have tested a range of two-life immediate annuities and find that the same pattern holds true for them. Hence, we are reasonably confident that charities can offer New York donors the ACGA rate for all two-life immediate annuities funded during the third quarter this year.

The story is less rosy for deferred gift annuities. We find that there still are some one-life and two-life deferred annuities where New York’s maximum rate is lower than the ACGA rate. We recommend that charities continue to determine New York’s maximum rate for one-life and two-life deferred annuities issued to New York donors in Q3 2022 and then offer the New York maximum rate or the ACGA rate, whichever is lower.

If you are working with a New York donor who wishes to fund a one-life or two-life deferred gift annuity, contact us. We will determine the maximum annuity rate New York will allow you to offer your donor. We can do the same for two-life immediate annuities if you want confirmation that the New York maximum rate is lower than the ACGA rate. Go here to learn more about our New York Rate Calculations Service or to submit a calculation request form.

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