If the deferral period is more than 20 years, you must use a lower compound interest factor for the entire period. Through August of 2002, a compound interest factor not exceeding 5.25% for the entire deferral period would meet New York and New Jersey requirements in nearly all instances.
When New York and New Jersey release their interest assumptions later this year, the maximum compound interest factor for longer deferral periods may change. Information about the maximum compound interest factors for these two states will be posted on the Planned Giving Resources website at that time.
* New York and New Jersey are the two states known at this time to require different interest factors for deferred gift annuities with longer deferral periods.
