New York Maximum Immediate Annuity Rates Remain Higher Than ACGA Rates for Q1 2023

Despite the increase in American Council on Gift Annuities (ACGA) rates that went into effect on January 1, 2023, New York 1-life maximum rates are higher for gift annuities funded in Q1 2023 than their corresponding 1-life ACGA rates at all male and female ages. Even better, our testing of 2-life immediate payment annuity rates over a range of age combinations suggests that all NY 2-life maximum rates are greater than their ACGA rate counterparts. We also haven’t found a case where the New York maximum rate for a 1-life deferred annuity is lower than the ACGA suggested maximum deferred rate, although it can come close.

While the conflict between New York and ACGA maximum rates has largely receded, we are still able to find New York 2-life maximum deferred annuity rates that are lower than the ACGA rate at certain annuitant ages. We also can’t be sure there aren’t 1-life deferred annuities or 2-life immediate payment annuities where the New York maximum rate is lower than the ACGA rate. So, when issuing a 2-life immediate annuity or 1-life or 2-life deferred annuity to a New York donor, we urge you to determine the New York maximum rate and, if lower than the ACGA rate you would ordinarily offer, to propose a rate no higher than New York’s maximum rate instead. To determine the New York maximum annuity rate for any of these annuities, fill out this form to request a calculation.

If your charity offers annuity rates higher than the ACGA rates, you should also check the New York maximum rate for any 1-life immediate annuities you may issue to a New York donor. It could be lower than the standard rate your charity would otherwise offer. You can look up New York’s 1-life maximum immediate annuity rates by going here and clicking the “Present Value of Immediate Annuities . . .” link. To compute the maximum allowable payout rate, divide the value in the maximum income column by 10 for the age in question.

Legislation has been reintroduced in the New York Senate that would greatly reduce the likelihood of its maximum rates continuing to be lower than the ACGA’s suggested maximum rates for any male or female ages. We are monitoring this legislation closely and will keep you posted on its progress.