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1. The residuum (amount remaining for the charity when the annuitant(s) has (have) died will be 50% of the original contribution.
2. Life expectancies are from the Annuity 2000 Tables. Conservatism is achieved by using female life expectancies, setting the ages back one year, and factoring in projections for increased life expectancies.
3. The total net annual return on reserves for immediate gift annuities is assumed to be 6.0%. The total net return on reserves for deferred gift annuities during the deferral period is assumed to be 5.75%. ("Net return" is total return minus assumed annual administrative expenses of 75 basis points.)
Adjustments:
1. The rates for annuitants age 81 and older are lower than would follow from the above assumptions, and beginning at age 90 rates are capped at 12%.
2. Rates for annuitants age 60 and younger are also lower than would follow from the above assumptions.
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