Thursday September 21, 2017

3.3.1 American Council on Gift Annuities

American Council on Gift Annuities

American Council on Gift Annuities:   The American Council on Gift Annuities is a voluntary association of over 1,500 charities.

ACGA Recommended Annuity Rates

Interest Rate Assumptions   Since 1939, the ACGA has assumed that charities using the ACGA rates will receive a final remainder value of at least 50% of the original contribution amount.

Annuity Reserve Investment Assumptions   ACGA bases its rates on a mixed portfolio that consists of 40% equities, 55% fixed investments and 5% cash.

Current or Immediate Gift Annuity Rates   Using these assumptions, the total return on gift annuity reserves is 4.25%.

Deferred Annuities:   New rates for deferred payment gift annuities also commence on January 1, 2012.

Current Rates:

One-life Rates:   ACGA Rates for a Single Life [Effective January 1, 2012].

Two-life Rates:   ACGA Rates for Two Lives [Effective January 1, 2012].

Previous Rates:

2011 ACGA Rates [Effective July 1, 2011 - December 31, 2011]:  

2010 ACGA Rates [Effective July 1, 2010 - June 30, 2011]:  

2009 ACGA Rates [Effective February 1, 2009 - June 30, 2010]:  

2008 ACGA Rates [Effective July 1, 2008 - January 31, 2009]:  

July 2003 ACGA Rates [Effective July 1, 2003 - June 30, 2008]:  

January 2003 ACGA Rates [Effective January 1, 2003 - June 30, 2003]:  

2002 ACGA Rates [Effective July 1, 2002 - December 31, 2002]:  

2001 ACGA Rates [Effective July 1, 2001 - June 30, 2002]:  

1999 ACGA Rates [Effective July 1, 1999 - June 30, 2001]:  

1998 ACGA Rates [Effective July 1, 1998 - June 30, 1999]:  

1997 ACGA Rates [Effective March 1, 1997 - June 30, 1998]:  

1994 ACGA Rates [Effective January 1, 1994 - February 28, 1997]:  

1992 ACGA Rates [Effective July 1, 1992 - December 31, 1993]:  

1983 ACGA Rates [Effective July 1, 1983 - June 30, 1992]:  

American Council on Gift Annuities


The American Council on Gift Annuities (ACGA or Council) is a voluntary association of charities. It exists for three primary purposes. These are: (1) to provide education and training in charitable gift annuities; (2) to recommend standard annuity rates for current and deferred gift annuities; and (3) to update charities on the state regulation of gift annuities.

The Council conducts an international conference on gift annuities every two years. The Rate Committee meets periodically to review gift annuity rates. The change in gift annuity rates is subject to variations in investments and interest rates and may be changed from time to time.

Charities that issue gift annuities are encouraged to become sponsors of the American Council on Gift Annuities and to subscribe to the Council's rates. The payment of annual dues entitles the charity to receive the current gift annuity rates, to attend the periodic conference at a sponsor rate and to receive regulatory and tax information on a periodic basis with respect to charitable gift annuities.

The ACGA may be contacted at:
American Council on Gift Annuities
1260 Winchester Parkway SE, Suite 205
Smyrna, GA 30080-6546
Jennifer Westmoreland
(770) 874-3355
ACGA@acga-web.org


ACGA Recommended Annuity Rates

Interest Rate Assumptions


In November 2011, the ACGA announced new rates effective January 1, 2012.

Since 1939, the ACGA has assumed that charities using the ACGA rates will receive a final remainder value of at least 50% of the original contribution amount. Historically, charities have received higher levels of residuum. The explanation of the ACGA rates effective July 1, 2011 added an additional requirement that the present value of the residuum be at least 20% of the gift amount.

Annuity Reserve Investment Assumptions


ACGA bases its rates on a mixed portfolio that consists of 40% equities, 55% fixed investments and 5% cash. The return rate on the 40% equities is the 80 year total return based primarily on the Standard and Poor's 500 Index, reduced by 2%. For the 55% bond portfolio, the return is based upon the yield for the past three months of a 10-year Treasury bond. The 5% cash amount reflects the current yield on the three-month Treasury.

Current or Immediate Gift Annuity Rates


Using these assumptions, the total return on gift annuity reserves is 4.25%. Because there is a 1% assumed expense allocation, the net rate for setting ACGA rates is 3.25% after January 1, 2012. The rates also reflect an actuarial decision to use a 50-50 blend of the 2012 IAR male and female mortality table with no age setback

The other adjustments are slightly lower rates for young annuitants to qualify for the required minimum 10% deduction with low applicable federal rates, and a cap on rates for very senior persons. A 9.0% cap applies to annuitants age 90 and older. The rate schedule contains slightly lower rates for single-life annuities at age 69 and younger, and slightly higher rates for single-life annuities at age 75 and older.

Deferred Annuities


New rates for deferred payment gift annuities also commence on January 1, 2012. A deferred annuity must include a one year or greater period of deferral between the funding date and the annuity starting date. The annuity starting date is defined by the IRS as one period prior to the first payment date. For example, with a quarterly payment gift annuity, the annuity starting date would be one quarter prior to the first payment.

The methodology for calculating deferred payment gift annuities uses the period of deferral to calculate the deferral factor. Based on the deferral period in actual numbers of years (calculated to four decimal points), there will be a 3.25% increase each year in the deferred annuity factor. This factor will then be multiplied times the payout rate for the person on the annuity starting date. Since the regulations to Sec. 72 of the Internal Revenue Code require the use of the annuity starting date for all other purposes, it is desirable for the deferred payment rates to be calculated in a manner consistent with these IRS regulations.

ACGA Rates for a Single Life [Effective January 1, 2012]


AgeRate
5 and Under 2.0
6 2.0
7 2.0
8 2.0
9 2.0
102.0
112.1
122.1
132.1
142.1
152.1
162.2
172.2
182.2
192.2
202.3
212.3
222.3
232.3
242.4
252.4
262.4
272.5
282.5
292.5
302.6
312.6
322.6
332.7
342.7
352.8
AgeRate
362.8
372.9
382.9
393.0
403.0
413.1
423.1
433.2
443.3
453.3
463.4
473.5
483.6
493.6
503.7
513.8
523.8
533.9
543.9
554.0
564.1
574.1
584.2
594.3
604.4
614.4
624.5
634.5
644.6
654.7
AgeRate
664.8
674.8
684.9
695.0
705.1
715.3
725.4
735.5
745.7
755.8
766.0
776.2
786.4
796.6
806.8
817.0
827.2
837.4
847.6
857.8
868.0
878.2
888.4
898.7
909.0
919.0
929.0
939.0
949.0
95 and Over9.0


ACGA Rates for Two Lives - Joint and Survivor [Effective January 1, 2012]


Younger AgeOlder AgeRate
5 and UnderAll*1.8
6 6-95+ 1.8
7 7-95+ 1.8
8 8-95+ 1.8
9 9-95+ 1.8
10 10-95+ 1.8
11 11-95+ 1.9
12 12-95+ 1.9
13 13-95+ 1.9
14 14-95+ 1.9
15 15-95+ 1.9
16 16-95+ 2.0
17 17-95+ 2.0
18 18-95+ 2.0
19 19-95+ 2.0
20 20-95+ 2.1
21 21-95+ 2.1
22 22-95+ 2.1
23 23-95+ 2.1
24 24-95+ 2.1
25 25-95+ 2.2
26 26-95+ 2.2
27 27-95+ 2.2
28 28-95+ 2.2
29 29-95+ 2.3
30 30-95+ 2.3
31 31-95+ 2.3
32 32-95+ 2.3
33 33-95+ 2.4
34 34-95+ 2.4
35 35-95+ 2.4
36 36-95+ 2.5
37 37-95+ 2.5
38 38-95+ 2.5
39 39-95+ 2.6
40 40-95+ 2.6
41 41-95+ 2.7
42 42-95+ 2.7
43 43-95+ 2.8
44 44-95+ 2.8
45 45-95+ 2.9
46 46-95+ 2.9
47 47-50 3.0
47 51-95+ 3.1
48 48 3.0
48 49-95+ 3.1
49 49-51 3.1
49 52-95+ 3.2
50 50 3.1
50 51-53 3.2
50 54-95+ 3.3
51 51-52 3.2
51 53-55 3.3
51 56-95+ 3.4
52 52-54 3.3
52 55-95+ 3.4
53 53-55 3.4
53 56-58 3.5
53 59-95+ 3.6
54 54 3.4
54 55-57 3.5
54 58-95+ 3.6
55 55 3.5
55 56-58 3.6
55 59-61 3.7
55 62-95+ 3.8
56 56-57 3.6
56 58-59 3.7
56 60-62 3.8
56 63-95+ 3.9
57 57-58 3.7
57 59-63 3.8
57 64-95+ 3.9
58 58-61 3.8
58 62-65 3.9
58 66-95+ 4.0
59 59-60 3.8
59 61-63 3.9
59 64-68 4.0
59 69-95+ 4.1
60 60-62 3.9
60 63-66 4.0
60 67-70 4.1
60 71-95+ 4.2
61 61 3.9
61 62-64 4.0
61 65-68 4.1
61 69-95+ 4.2
62 62-63 4.0
62 64-66 4.1
62 67-69 4.2
62 70-95+ 4.3
63 63-64 4.1
63 65-67 4.2
Younger AgeOlder AgeRate
63 68-95+ 4.3
64 64-66 4.2
64 67-70 4.3
64 71-95+ 4.4
65 65 4.2
65 66-68 4.3
65 69-72 4.4
65 73-95+ 4.5
66 66-67 4.3
66 68-71 4.4
66 72-75 4.5
66 76-95+ 4.6
67 67-69 4.4
67 70-73 4.5
67 74-95+ 4.6
68 68 4.4
68 69-71 4.5
68 72-75 4.6
68 76-95+ 4.7
69 69-70 4.5
69 71-73 4.6
69 74-76 4.7
69 77-95+ 4.8
70 70-71 4.6
70 72-74 4.7
70 75-78 4.8
70 79-95+ 4.9
71 71-73 4.7
71 74-75 4.8
71 76-79 4.9
71 80-82 5.0
71 83-95+ 5.1
72 72 4.7
72 73-74 4.8
72 75-76 4.9
72 77-79 5.0
72 80-83 5.1
72 84-95+ 5.2
73 73 4.8
73 74-75 4.9
73 76-77 5.0
73 78-80 5.1
73 81-83 5.2
73 84-95+ 5.3
74 74 4.9
74 75-76 5.0
74 77-78 5.1
74 79-80 5.2
74 81-83 5.3
74 84-87 5.4
74 88-95+ 5.5
75 75 5.0
75 76-77 5.1
75 78 5.2
75 79-81 5.3
75 82-83 5.4
75 84-86 5.5
75 87-95+ 5.6
76 76-77 5.2
76 78-79 5.3
76 80-81 5.4
76 82-83 5.5
76 84-85 5.6
76 86-88 5.7
76 89-95+ 5.8
77 77-78 5.3
77 79 5.4
77 80-81 5.5
77 82-83 5.6
77 84-85 5.7
77 86-87 5.8
77 88-91 5.9
77 92-95+ 6.0
78 78 5.4
78 79 5.5
78 80-81 5.6
78 82-83 5.7
78 84 5.8
78 85-86 5.9
78 87-89 6.0
78 90-92 6.1
78 93-95+ 6.2
79 79-80 5.6
79 81 5.7
79 82 5.8
79 83-84 5.9
79 85-86 6.0
79 87-88 6.1
79 89-90 6.2
79 91-93 6.3
79 94-95+ 6.4
80 80 5.7
80 81 5.8
80 82 5.9
Younger AgeOlder AgeRate
80 83-84 6.0
80 85 6.1
80 86-87 6.2
80 88-89 6.3
80 90-91 6.4
80 92-93 6.5
80 94-95+ 6.6
81 81 5.9
81 82 6.0
81 83 6.1
81 84-85 6.2
81 86 6.3
81 87-88 6.4
81 89 6.5
81 90-91 6.6
81 92-94 6.7
81 95+ 6.8
82 82 6.1
82 83 6.2
82 84 6.3
82 85-86 6.4
82 87 6.5
82 88 6.6
82 89-90 6.7
82 91 6.8
82 92-93 6.9
82 94-95+ 7.0
83 83 6.3
83 84 6.4
83 85 6.5
83 86 6.6
83 87 6.7
83 88-89 6.8
83 90 6.9
83 91 7.0
83 92-93 7.1
83 94-95+ 7.2
84 84 6.5
84 85 6.6
84 86 6.7
84 87 6.8
84 88 6.9
84 89 7.0
84 90 7.1
84 91 7.2
84 92-93 7.3
84 94-95+ 7.4
85 85 6.7
85 86 6.9
85 87 7.0
85 88 7.1
85 89 7.2
85 90 7.3
85 91 7.4
85 92 7.5
85 93-95+ 7.6
86 86 7.0
86 87 7.1
86 88 7.3
86 89 7.4
86 90 7.5
86 91 7.6
86 92 7.7
86 93-95+ 7.8
87 87 7.3
87 88 7.4
87 89 7.5
87 90 7.7
87 91 7.8
87 92 7.9
87 93-95+ 8.0
88 88 7.6
88 89 7.7
88 90 7.9
88 91 8.0
88 92 8.1
88 93-95+ 8.2
89 89 7.9
89 90 8.0
89 91 8.2
89 92 8.3
89 93-95+ 8.5
90 90 8.2
90 91 8.4
90 92 8.5
90 93 8.7
90 94-95+ 8.8
91 91 8.6
91 92 8.7
91 93-95+ 8.8
92 92-95+ 8.8
93 93-95+ 8.8
94 94-95+ 8.8
95 95+ 8.8


2011 ACGA Rates [Effective July 1, 2011 - December 31, 2011]

Single Life

Two Lives - Joint and Survivor


2010 ACGA Rates [Effective July 1, 2010 - June 30, 2011]

Single Life

Two Lives - Joint and Survivor


2009 ACGA Rates [Effective February 1, 2009 - June 30, 2010]

Single Life

Two Lives - Joint and Survivor


2008 ACGA Rates [Effective July 1, 2008 - January 31, 2009]

Single Life

Two Lives - Joint and Survivor


July 2003 ACGA Rates [Effective July 1, 2003 - June 30, 2008]

Single Life

Two Lives - Joint and Survivor


January 2003 ACGA Rates [Effective January 1, 2003 - June 30, 2003]

Single Life

Two Lives - Joint and Survivor


2002 ACGA Rates [Effective July 1, 2002 - December 31, 2002]

Single Life

Two Lives - Joint and Survivor


2001 ACGA Rates [Effective July 1, 2001 - June 30, 2002]

Single Life

Two Lives - Joint and Survivor


1999 ACGA Rates [Effective July 1, 1999 - June 30, 2001]

Single Life

Two Lives - Joint and Survivor


1998 ACGA Rates [Effective July 1, 1998 - June 30, 1999]

Single Life

Two Lives - Joint and Survivor


1997 ACGA Rates [Effective March 1, 1997 - June 30, 1998]

Single Life

Two Lives - Joint and Survivor


1994 ACGA Rates [Effective January 1, 1994 - February 28, 1997]

Single Life

Two Lives - Joint and Survivor


1992 ACGA Rates [Effective July 1, 1992 - December 31, 1993]

Single Life

Two Lives - Joint and Survivor


1983 ACGA Rates [Effective July 1, 1983 - June 30, 1992]

Single Life

Two Lives - Joint and Survivor



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