Updated 3/8/2024: New York and ACGA maximum annuity rates no longer in conflict
A new law went into effect in New York on January 23, 2024 that revised how New York computes its maximum annuity rates. As a result, no current New York maximum annuity rates are lower than the corresponding maximum annuity rates currently suggested by the American Council on Gift Annuities (ACGA). Under the new law, New York will update its rates every July 1 and January 1. The ACGA updates its rates periodically, as well. It is unlikely that conflicts between New York and ACGA maximum annuity rates like the ones described below will arise again, but it could happen under certain unusual circumstances. We will update this post again if any future New York maximum annuity rates become lower than their corresponding ACGA rates.

Here’s the problem:
The ACGA, in an April 2021 communication, informed its members that the ACGA suggested maximum payout rates exceed the current maximum payout rates allowed by the State of New York at the typical ages of most gift annuitants. While there are a number of states that regulate gift annuities, New York is the only one that issues its own maximum allowable gift annuity payout rates for its residents. Until recently, the ACGA suggested maximum payout rates have been consistently lower than the New York maximum rates.

What we have determined:  
Our most recent analysis reveals that the ACGA rates exceed the maximum New York rates applicable to gift annuities funded in October – December 2021 for females at ages 45 through 88 and for males at ages 46 through 85. That’s pretty much the age group for new gift annuities! Please note, the NY maximum payout rates are published only for 1-life annuities, and they are gender-specific. The state does not currently publish maximum payout rates for 2-life gift annuities, or for any type of deferred gift annuities.

Here’s the problem:
The ACGA, in an April 2021 communication, informed its members that the ACGA suggested maximum payout rates exceed the current maximum payout rates allowed by the State of New York at the typical ages of most gift annuitants. While there are a number of states that regulate gift annuities, New York is the only one that issues its own maximum allowable gift annuity payout rates for its residents. Until recently, the ACGA suggested maximum payout rates have been consistently lower than the New York maximum rates.

What we have determined:  
Our recent analysis revealed that the ACGA rates exceed the maximum New York rates applicable to gift annuities funded in April – June 2021 for females at ages 46 through 91 and for males at ages 46 through 86. That’s pretty much the age group for new gift annuities! Please note, the NY maximum payout rates are published only for 1-life annuities, and they are gender-specific. The state does not currently publish maximum payout rates for 2-life gift annuities, or for any type of deferred gift annuities.