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.