New York Close to Fixing State's Charitable Gift Annuity Glitch

Most states use rate guidelines developed by the council.

The New York Rate Rules

In 2020, the New York State Department of Financial Services developed a set of payout calculation rules that required charities to set gender-specific rates and update the rates every three months.

“The constant adjustment of rates and the gender specificity of those rates increase the costs and complexity to charities,” according to the gift annuities council. “This caused confusion and disruption to charities and donors.”

Financial services regulators and lawmakers in New York accepted a gift annuities council proposal to shift to using unisex rates and a simpler method for calculating the maximum allowable rates.

The New York Bill

S02863 was introduced by state Sen. Neil Breslin, D-Albany, N.Y., chairman of the Senate Insurance Committee.

If Hochul signs the bill, it will take effect 90 days after the signing.

A view of Manhattan, from Midtown looking west toward the Hudson River. Credit: ALM