Dear PG Calcer,

On November 23, the American Council on Gift Annuities (ACGA) announced that it will be increasing its suggested maximum annuity rates, effective January 1, 2023. The ACGA estimates that the new rates will be about 0.6% higher than the current rates for single-life and joint-life annuities. Also, the interest factor used to adjust deferred annuity rates upward for the deferral of payments will increase 0.75% to 4.25%.

The ACGA plans to make the rates available to the general public on Monday, December 19, 2022. We expect to be ready to release updates to PGM Anywhere, Planned Giving Manager (desktop), GiftCalcs, and all our Marketing Services planned giving websites that same day. Where applicable, these updates will also include the indexed tax tables for 2023.

A Word of Caution
A few charities always ask us whether they can offer new higher ACGA rates before their effective date. We caution against doing this for two reasons. First, the current rates are more favorable to your charity than the new rates and will result in bigger gifts. Second, if your charity has previously filed an ACGA rate table with Alabama, Arkansas, California, Maryland, New Jersey, New York, or Washington, the state will assume that your charity will adopt each new ACGA schedule as of the ACGA’s stated effective date. Any acceleration or delay in adoption needs to be specifically communicated to the state. For example, it would violate New Hampshire law for a charity to issue annuities using the new ACGA rates before the rates become effective on January 1, 2023.

Best,

Bill Laskin
Vice President, Product Management
PG Calc
Your partner in planned giving success.
888-474-2252
support@pgcalc.com
www.pgcalc.com