ACGA Board Action Regarding Gift Annuity Rates
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 is being developed reflecting this change and will be released no later than January 15, when the actuarial work is complete.
It is anticipated that the recommended rates will be lower 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 recommendation will be effective on February 1, 2009.