In keeping with a previous notice that action on suggested rates would be announced by July 1, the ACGA is reaffirming the recommended Schedule of Rates that became effective February 1, 2009.
The Rates Committee and the Board will continue with their customary review of factors that affect our rates recommendations. Your attention is called to our Rates Report published in April 2009 and our Best Practices Document for guidance on the effective operation of your gift annuity program. The 2009 Rates Report is available at no charge to ACGA sponsors in the Sponsors’ Forum on the ACGA web site. The Best Practices document is available to everyone in the Resources/Ethics section of the site.
The Board of Directors of the American Council on Gift Annuities (ACGA), at a called meeting on December 29, 2008, approved a recommendation from the Rates Committee to reduce the expected return assumption from 5.75% to 5.25%. A new rate schedule has been developed reflecting this change.
Recommended rates have been lowered by .4% to .7% at each age with a maximum rate of 9.5% at ages 90 and above. The new rates will qualify at all ages at a CFMR of 2.4% or above. The new rate recommendations are effective on February 1, 2009. These rates will be held until at least June 30, 2009. In the case of deferred gift annuities, there may be a few instances in which rates based on the ACGA's suggested schedule and methodology do not qualify when the CMFR is quite low. In those instances, the deferred rates would have to be reduced to qualify.
NOTE July 1, 2003,
July 1, 2004,
July 1, 2005,
July 1, 2006
&
July 1, 2007 Immediate gift annuity rates are the same.
Please check the Comments page for further information about deferred payment gift annuities.
