New York Max Annuity Rates Legislation Signed into Law!
It has been a long time coming, but New York legislation that should greatly reduce the likelihood that any of its maximum annuity rates will be lower than the corresponding maximum rate suggested by the American Council on Gift Annuities (ACGA) has finally become law. Governor Hochul signed New York Bill A4599a on October 25. The new law will go into effect 90 days from that date, so the New York maximum rates computed using the old method will continue to apply until January 23, 2024. We know that all 1-life New York maximum rates for the current quarter (Q4 2023) are higher than their ACGA rate counterparts, and hence not a problem for charities that follow the ACGA rates, but we can’t be as sure about 2-life gift annuities or 1-life and 2-life deferred gift annuities. For these annuities, the safe thing to do while the old method is still in play is to determine the New York maximum rate and then offer that rate or the ACGA rate, whichever is lower.
If you are working with a New York donor who wishes to fund a 2-life immediate gift annuity, or a 1-life or 2-life deferred gift annuity, before January 23, 2024, contact us. We will determine the maximum annuity rate New York will allow you to offer your donor. Go here to learn more about our New York Rate Calculations Service or to submit a calculation request form.