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Rates of Return for Penn College CGAs Dropping Feb. 1


You can support students at Pennsylvania College of Technology, and provide yourself with a steady source of income, by establishing a Penn College Charitable Gift Annuity and with rates of return scheduled to be reduced on Feb. 1, now is the best time.

You can establish a Penn College CGA with a minimum gift of $10,000, in the form of cash or negotiable securities, and in exchange for your gift, the college guarantees to make specific payments to one or two beneficiaries as long as either is living. You must be at least 55 years old to establish a Penn College CGA, and you must be at least 60 years old to receive payout.

Current rates for a single-life CGA range from 5.5 percent at age 60 to 10.5 percent at age 90 and over. However, gift-annuity payouts for most ages will be reduced by 0.4 percent to 1.0 percent on Feb. 1. Establishing a Penn College CGA prior to that date will lock in the current, higher rates.

 

Sample Rates of Return for Single-Life Annuity*

Age     Current Rate (Until Jan. 31)     New Rate (Effective Feb. 1)

65                               5.7%                                                         5.3%

75                               6.7%                                                         6.3%

85                               8.9%                                                         8.1%

90 and over             10.5%                                                        9.5%

 

Payout rates are determined by the age and number of beneficiaries, and the time between when the gift is made and when the payments begin.

In addition to receiving immediate tax benefits and periodic annuity payments during your lifetime, establishing a Penn College CGA can give you the personal satisfaction of making a gift that will make a difference for the future of the college, its programs of study and, most importantly, its students. Additionally, at the maturity of your Penn College CGA, any amount remaining can be directed to the scholarship fund of your choice.

If you’re interested in learning more, please contact Barry Stiger, vice president for institutional advancement, at (570) 320-8020.

* The recommended rates of return are normally set once each year, but they may be revised more or less frequently. The rate for each CGA is permanently fixed at the time the CGA is established.

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