Analysis of the New ACGA Annuity Rates

On May 8, 2020, the American Council on Gift Annuities (ACGA) announced there would be new suggested maximum gift annuity rates, effective July 1, 2020, to replace the rates that became effective on January 1, 2020. The ACGA released the new 1-life annuity rates on May 29, 2020 and the 2-life annuity rates on June 11, 2020. The ACGA’s decision to reduce its suggested maximum gift annuity rates was triggered by the plunge in interest rates starting in mid-February, one of the countless consequences of the ongoing coronavirus pandemic.

Analysis of the New ACGA Annuity Rates

On November 22, 2019, the American Council on Gift Annuities (ACGA) announced new suggested maximum gift annuity rates to replace the rates that became effective on July 1, 2018. The new rates will apply to gift annuities established on or after January 1, 2020, although a charity may follow the new rates immediately if it wishes.

New Rates? What Should I do?

On November 22, 2019, the American Council on Gift Annuities (ACGA) announced new suggested maximum gift annuity rates to replace the rates that became effective on July 1, 2018. The new rates will apply to gift annuities established on or after January 1, 2020, although you may use the new rates immediately. These new rates are moderately lower than the ones they replace; you can read our complete analysis of the new rates here.