New York Maximum Annuity Rates Higher than ACGA Rates in Q4 2022

As was true for the last quarter, 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 fourth quarter of 2022 increased modestly from their third quarter levels. Consequently, as in the third quarter, New York’s maximum single-life annuity rates for Q4 2022 are higher than the corresponding ACGA rates for all male and female ages. This means charities can offer the ACGA rate to New York donors of single-life annuities funded from October 1, 2022 to December 31, 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. It appears that charities can offer New York donors the ACGA rate for all two-life immediate annuities funded during the fourth quarter this year. To be safe, however, we recommend that you determine the New York maximum rate for a 2-life annuity. There could be annuitant age combinations we didn’t test where the New York maximum rate is lower than the ACGA rate.

The story remains less rosy for deferred gift annuities. There still are some one-life and two-life deferred annuities where New York’s maximum rate is lower than the ACGA rate. Charities should continue to determine New York’s maximum rate for one-life and two-life deferred annuities issued to New York donors in Q4 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 two-life immediate gift annuity, or 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. Go here to learn more about our New York Rate Calculations Service or to submit a calculation request form.

For additional details about this issue, see our Knowledge Base article.