Prudential Premier Retirement Variable Annuities

More documents

Recommendations

Info

GUARANTEED RETURN OPTION PLUS II (GRO PLUS II) Guaranteed Return Option SM Plus II (GRO Plus II SM ) is a form of “guaranteed minimum accumulation benefit” that guarantees a specified Unadjusted Account Value at one or more dates in the future. If you participate in this benefit, you are subject to the predetermined mathematical formula described below that transfers Account Value between your Sub-accounts and an AST bond portfolio Sub-account. GRO Plus II is available only for Annuities issued with an application signed prior to January 24, 2011, subject to availability which may vary by firm. Under GRO Plus II, we guarantee that on the seventh anniversary of benefit election, and each anniversary thereafter, the Unadjusted Account Value will be not less than the Unadjusted Account Value on the date that the benefit is added to your Annuity (adjusted for subsequent Purchase Payments and withdrawals as detailed below). We refer to this initial guarantee as the “base guarantee.” In addition to the base guarantee, GRO Plus II offers the possibility of an enhanced guarantee. You may “manually” lock in an enhanced guarantee once per “benefit year” (i.e., a year beginning on the date you acquired the benefit and each anniversary thereafter) if your Unadjusted Account Value on that Valuation Day exceeds the amount of any outstanding base guarantee or enhanced guarantee. If you elect to manually lock-in an enhanced guarantee on an anniversary of the effective date of the benefit, that lock-in will not count towards the one elective manual lock-in you may make each benefit year. We guarantee that the Unadjusted Account Value locked-in by that enhanced guarantee will not be any less seven years later, and each anniversary of that date thereafter. In addition, you may elect an automatic enhanced guarantee feature under which, if your Unadjusted Account Value on a benefit anniversary exceeds the highest existing guarantee by 7% or more, we guarantee that such Unadjusted Account Value will not be any less seven benefit anniversaries later and each benefit anniversary thereafter. You may maintain only one enhanced guarantee in addition to your base guarantee. Thus, when a new enhanced guarantee is created, it cancels any existing enhanced guarantee. However, the fact that an enhanced guarantee was effected automatically on a benefit anniversary does not prevent you from “manually” locking-in an enhanced guarantee during the ensuing benefit year. In addition, the fact that you “manually” locked in an enhanced guarantee does not preclude the possibility of an automatic enhanced guarantee on the subsequent benefit anniversary. Please note that upon creation of a new enhanced guarantee, an immediate transfer to an AST bond portfolio Sub-account (which is used as part of this benefit) may occur depending on the discount rate (as described below) used to determine the present value of each of your guarantees. You may elect to terminate an enhanced guarantee without also terminating the base guarantee. If you do, any amounts held in the AST bond portfolio Sub-account (which is used as part of this benefit) with respect to that enhanced guarantee will be transferred to your other Sub-accounts in accordance with your most recent allocation instructions, and if none exist, then pro rata to your variable Sub-accounts (see below “Key Feature – Allocation of Unadjusted Account Value”). Amounts held in an AST bond portfolio Sub-account with respect to the base guarantee will not be transferred as a result of the termination of an enhanced guarantee. You may not lock in an enhanced guarantee, either manually or through our optional automatic program, within seven years prior to the Latest Annuity Date (please see “Annuity Options” for further information). This also applies to a new Owner who has acquired the Annuity from the original Owner. In this section, we refer to a date on which the Unadjusted Account Value is guaranteed to be present as the “Maturity Date”. If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Unadjusted Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Sub-account (other than the AST bond portfolio Sub-account used with this benefit and described below) in accordance with your most recent allocation instructions, which means: a) the Custom Portfolio Program or, b) if you are not participating in this program, then such amounts will be allocated to your Sub-accounts on a pro rata basis. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST bond portfolio Sub-account associated with the maturing guarantee in accordance with your most recent allocation instructions, which means: a) the Custom Portfolio Program or, b) if you are not participating in this program, then such amounts will be allocated to your Sub-accounts on a pro rata basis. If the former (i.e., an asset allocation program), your Unadjusted Account Value will be transferred according to the program. Any addition or transferred amount may be subsequently re-allocated based on the predetermined mathematical formula described below. The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Unadjusted Account Value, and the transfer of Unadjusted Account Value to support your future guarantees, the benefit may provide some protection from significant Sub-account losses. For this same reason, the benefit may limit your ability to benefit from Sub-account increases while it is in effect. We increase both the base guarantee and any enhanced guarantee by the amount of each Purchase Payment (including any associated Purchase Credits) made subsequent to the date that the guarantee was established. For example, if the effective date of the benefit was January 3, 2011 and the Account Value was $100,000 on that date, then a $30,000 Purchase Payment made on March 30, 2012 would increase the base guarantee amount to $130,000. If you make a withdrawal (including any CDSC), we effect a proportional reduction to each existing guarantee amount. We calculate a proportional reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Unadjusted Account Value immediately prior to the withdrawal. 96
If you make a withdrawal, we will deduct the withdrawal amount pro rata from each of your Sub-accounts (including the AST bond portfolio Sub-account used with this benefit). EXAMPLE This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit. Assume the following: ▪ The Issue Date is December 1, 2010 ▪ The benefit is elected on December 1, 2010 ▪ The Unadjusted Account Value on December 1, 2010 is $200,000, which results in a base guarantee of $200,000 ▪ An enhanced guarantee amount of $350,000 is locked in on December 1, 2011 ▪ The Unadjusted Account Value immediately prior to the withdrawal is equal to $380,000 ▪ for purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be inapplicable based on the Free Withdrawal provision if the withdrawal was within the CDSC period, and would be inapplicable to the C Series) If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio of the total withdrawal amount to the Unadjusted Account Value just prior to the withdrawal being taken. Here is the calculation (figures are rounded): Withdrawal Amount $ 50,000 Divided by Unadjusted Account Value before withdrawal $380,000 Equals ratio 13.16% All guarantees will be reduced by the above ratio (13.16%). Base guarantee amount $173,680 Enhanced guarantee amount $303,940 Key Feature – Allocation of Unadjusted Account Value For GRO Plus II (and Highest Daily GRO II, if elected prior to July 16, 2010) We limit the Sub-accounts to which you may allocate Unadjusted Account Value if you elect GRO Plus II or Highest Daily GRO II (HD GRO II) (see below for information pertaining to HD GRO II). For purposes of these benefits, we refer to those permitted Investment Options (other than the required bond portfolio Sub-accounts discussed below) as the “Permitted Sub-accounts.” GRO Plus II and HD GRO II use a predetermined mathematical formula to help us manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for newly-issued Annuities that elect or re-elect GRO Plus II and HD GRO II and for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under GRO Plus II and HD GRO II, by moving assets out of certain Sub-accounts if dictated by the formula (see below). In essence, we seek to preserve Unadjusted Account Value, by transferring them to a more stable option (i.e., one or more specified bond Portfolios of Advanced Series Trust). We refer to the Sub-accounts corresponding to these bond Portfolios collectively as the “AST bond portfolio Sub-accounts”. The formula also contemplates the transfer of Unadjusted Account Value from an AST bond portfolio Sub-account to the other Sub-accounts. Because these restrictions and the use of the formula lessen the likelihood that your Unadjusted Account Value will be reduced below the base and/or enhanced guarantee(s), they also reduce the likelihood that we will make any payments under this benefit. They may also limit your upside potential for growth. The formula is set forth in Appendix D of this prospectus. A summary description of each AST bond portfolio Sub-account appears within the prospectus section entitled “Investment Options.” In addition, you can find a copy of the AST bond portfolio prospectus by going to www.prudentialannuities.com. For purposes of operating the GRO Plus II formula, we have included within each Annuity several AST bond portfolio Sub-accounts. Each AST bond portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond portfolio whose underlying investments generally mature in 2020, an AST bond portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST bond portfolio Sub-account to which Account Value is transferred. We will introduce new AST bond portfolio Sub-accounts in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit (and the Highest Daily GRO II benefit). If you have elected GRO Plus II or HD GRO II, you may have Unadjusted Account Value allocated to an AST bond portfolio Sub-account only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST bond portfolio Sub-account. Although we employ several AST bond portfolio Sub-accounts for purposes of the benefit, the formula described in the next paragraph operates so that your Unadjusted Account Value may be allocated to only one AST bond portfolio Sub-account at one 97
Page 1 and 2:
PRUCO LIFE INSURANCE COMPANY PRUCO
Page 3 and 4:
UNDERLYING PORTFOLIO UNDERLYING MUT
Page 5 and 6:
Page 7 and 8:
ii. To the list of available variab
Page 9 and 10:
II. NEW OPTIONAL BENEFITS This supp
Page 11 and 12:
that may periodically transfer your
Page 13 and 14:
Anniversary, we identify the Unadju
Page 15 and 16:
Non-Lifetime Withdrawal Feature You
Page 17 and 18:
▪ If annuity payments are to begi
Page 19 and 20:
(iv) our receipt of Due Proof of De
Page 21 and 22:
Example (assume the income basis is
Page 23 and 24:
taken first from your own Account V
Page 25 and 26:
While Spousal Highest Daily Lifetim
Page 27 and 28:
** In this example, the first daily
Page 29 and 30:
▪ Any Lifetime Withdrawal that yo
Page 31 and 32:
to the death claim and the payment
Page 33 and 34:
ages 59 1 ⁄2 to 64; 4.5% for ages
Page 35 and 36:
Example of proportional reductions
Page 37 and 38:
In general, withdrawals made from t
Page 39 and 40:
certain in order to comply with the
Page 41 and 42:
Upon termination of Highest Daily L
Page 43 and 44:
Key Feature - Annual Income Amount
Page 45 and 46:
Example of dollar-for-dollar reduct
Page 47 and 48:
Highest Daily Death Benefit A Death
Page 49 and 50:
newly-elected benefit will commence
Page 51 and 52:
How Spousal Highest Daily Lifetime
Page 53 and 54:
[THIS PAGE INTENTIONALLY LEFT BLANK
Page 55 and 56:
Page 57 and 58:
Page 60 and 61:
The Prudential Insurance Company of
Page 62 and 63:
COMBOSUP2 ADVANCED SERIES TRUST Sup
Page 64 and 65:
Subadvisers Investment Categories a
Page 66 and 67:
STYLE/ TYPE Asset Allocation COMBOS
Page 68 and 69:
GENPROD2 PRUCO LIFE INSURANCE COMPA
Page 70 and 71:
Page 72 and 73:
In the section titled “Investment
Page 74 and 75:
Page 76 and 77:
Advanced Series Trust AST Academic
Page 78 and 79:
DEATH BENEFITS ....................
Page 80 and 81:
Guarantee Period: The period of tim
Page 82 and 83:
C SERIES There is no CDSC or other
Page 84 and 85:
OPTIONAL BENEFIT ANNUALIZED OPTIONA
Page 86 and 87:
OPTIONAL BENEFIT ANNUALIZED OPTIONA
Page 88 and 89:
Page 90 and 91:
EXPENSE EXAMPLES These examples are
Page 92 and 93:
Please see “Investment Options,
Page 94 and 95:
INVESTMENT OPTIONS The Investment O
Page 96 and 97:
INVESTMENT OBJECTIVES/POLICIES ADVA
Page 98 and 99:
INVESTMENT OBJECTIVES/POLICIES AST
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
group (Group II) our “Custom Port
Page 110 and 111:
For the Long-Term MVA Option, a Gua
Page 112 and 113:
FEES, CHARGES AND DEDUCTIONS In thi
Page 114 and 115:
Settlement Service Charge: If your
Page 116 and 117:
additional Purchase Payments, unles
Page 118 and 119:
Please note the following additiona
Page 120 and 121:
MANAGING YOUR ACCOUNT VALUE There a
Page 122 and 123:
Please Note: Contracts managed by y
Page 124 and 125: ACCESS TO ACCOUNT VALUE TYPES OF DI
Page 126 and 127: prior to age 59 1 ⁄2 if you elect
Page 128 and 129: ANNUITY OPTIONS Annuitization invol
Page 130 and 131: LIVING BENEFITS Pruco Life offers d
Page 132 and 133: Income 2.0 may be appropriate if yo
Page 134 and 135: subsequent Purchase Payments and wi
Page 136 and 137: make will be the first Lifetime Wit
Page 138 and 139: certain in order to comply with the
Page 140 and 141: transfer all amounts held in the AS
Page 142 and 143: Example: Assuming the Target Ratio
Page 144 and 145: If you elect Highest Daily Lifetime
Page 146 and 147: If the Annuity permits additional P
Page 148 and 149: If you have not made a Lifetime Wit
Page 150 and 151: ▪ Spousal Highest Daily Lifetime
Page 152 and 153: Required Minimum Distributions See
Page 154 and 155: ▪ One Annuity Owner, where the Ow
Page 156 and 157: effective date of the benefit, the
Page 158 and 159: Highest Daily Lifetime Income 2.0 w
Page 160 and 161: ▪ The Annuitant was 70 years old
Page 162 and 163: ▪ Please note that if your Unadju
Page 164 and 165: The benefit automatically terminate
Page 166 and 167: (c) all Purchase Payments (includin
Page 168 and 169: ▪ Both designated lives were 70 y
Page 170 and 171: Required Minimum Distributions See
Page 172 and 173: newly-elected benefit will commence
Page 176 and 177: time. The formula determines the ap
Page 178 and 179: Value” above for more details). Y
Page 180 and 181: HD GRO II uses a predetermined math
Page 182 and 183: Any amounts invested in the AST bon
Page 184 and 185: DEATH BENEFITS TRIGGERS FOR PAYMENT
Page 186 and 187: Calculation of Highest Anniversary
Page 188 and 189: A surviving spouse’s ability to c
Page 190 and 191: VALUING YOUR INVESTMENT VALUING THE
Page 192 and 193: TAX CONSIDERATIONS The tax consider
Page 194 and 195: Taxes Payable by Beneficiaries The
Page 196 and 197: A Nonqualified annuity may also be
Page 198 and 199: In any event, you must begin receiv
Page 200 and 201: ERISA Requirements ERISA (the “Em
Page 202 and 203: out of any other business we may co
Page 204 and 205: Cost Averaging, auto rebalancing, a
Page 206 and 207: Infinex Investments, Inc. ING Finan
Page 208 and 209: County, Illinois, was served on Pru
Page 210 and 211: [THIS PAGE INTENTIONALLY LEFT BLANK
Page 212 and 213: Sub-Accounts Accumulation Unit Valu
Page 224 and 225:
Sub-Accounts Accumulation Unit Valu
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
PREMIER RETIREMENT L SERIES Pruco L
Page 232 and 233:
Page 234 and 235:
Sub-Accounts PREMIER RETIREMENT C S
Page 236 and 237:
Page 238 and 239:
Page 240 and 241:
Page 242 and 243:
Page 244 and 245:
Annuity Comparison X Series B Serie
Page 246 and 247:
The shaded values indicate the high
Page 248 and 249:
Page 250 and 251:
holidays), plus the amount of any P
Page 252 and 253:
Examples of dollar-for-dollar and p
Page 254 and 255:
Required Minimum Distributions Requ
Page 256 and 257:
Unadjusted Account Value and Protec
Page 258 and 259:
equire a transfer to the Bond Sub-a
Page 260 and 261:
to as the “LIA Amount”) if you
Page 262 and 263:
the latter scenario, we determine w
Page 264 and 265:
The “Periodic Value” is initial
Page 266 and 267:
Amount on a dollar-for-dollar basis
Page 268 and 269:
Here is the calculation: Withdrawal
Page 270 and 271:
Election of and Designations under
Page 272 and 273:
Page 274 and 275:
holidays), plus the amount of any P
Page 276 and 277:
Examples of dollar-for-dollar and p
Page 278 and 279:
Required Minimum Distributions Requ
Page 280 and 281:
▪ If you elect this benefit and i
Page 282 and 283:
Generally, the formula, which is ap
Page 284 and 285:
Additional Tax Considerations If yo
Page 286 and 287:
LIA Amount after the first Lifetime
Page 288 and 289:
section above entitled “How Highe
Page 290 and 291:
Highest Daily Auto Step-Up An autom
Page 292 and 293:
Non-Lifetime Withdrawal Feature You
Page 294 and 295:
apply to current participants in th
Page 296 and 297:
Page 298 and 299:
If the formula ratio is less than a
Page 300 and 301:
Page 302 and 303:
We reserve the right to waive the l
Page 304 and 305:
Page 306 and 307:
If the formula ratio is less than a
Page 308 and 309:
Page 310 and 311:
▪ T - the amount of a transfer in
Page 312 and 313:
Page 314 and 315:
You can have a traditional IRA whet
Page 316 and 317:
2. Rollovers from an employer retir
Page 318 and 319:
Distributions from traditional IRAs
Page 320 and 321:
Page 322 and 323:
income, and dividend income), pensi
Page 324 and 325:
c. Made to a Beneficiary or to your
Page 326 and 327:
Page 328 and 329:
CONTINGENT DEFERRED SALES CHARGE 1
Page 330 and 331:
Page 332:
The Prudential Insurance Company of
show all

Prudential Premier Retirement Variable Annuities

Create successful ePaper yourself

Delete template?

Save as template?