Prudential Premier Retirement Variable Annuities

More documents

Recommendations

Info

▪ If you elect this benefit and in connection with that election, you are required to reallocate to different Sub-accounts, then on the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Sub-accounts and (ii) invest the proceeds of those sales in the Sub-accounts that you have designated. During this reallocation process, your Unadjusted Account Value allocated to the Sub-accounts will remain exposed to investment risk, as is the case generally. The newly-elected benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected benefit will not begin until the close of business on the following Valuation Day. ▪ Any Death Benefit, including any optional Death Benefit that you elect, will terminate if withdrawals taken under Highest Daily Lifetime Income reduce your Unadjusted Account Value to zero (see “Death Benefits” earlier in the prospectus). ▪ The current charge for Highest Daily Lifetime Income is 0.95% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. The maximum charge for Highest Daily Lifetime Income is 1.50% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in “Highest Daily Auto Step-Up” above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.2375% of the greater of the prior Valuation Day’s Unadjusted Account Value and the prior Valuation Day’s Protected Withdrawal Value. We deduct the fee pro rata from each of your Sub-accounts, including the AST Investment Grade Bond Sub-account. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments. If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the “Account Value Floor”), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit. Election of and Designations under the Benefit For Highest Daily Lifetime Income, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must be at least 45 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Income. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Income, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines. Highest Daily Lifetime Income can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Highest Daily Lifetime Income and terminate it, you can re-elect it, subject to our current rules and availability. See “Termination of Existing Benefits and Election of New Benefits” for information pertaining to elections, termination and re-election of benefits. Please note that if you terminate a living benefit and elect Highest Daily Lifetime Income, you lose the guarantees that you had accumulated under your existing benefit and your guarantees under Highest Daily Lifetime Income will be based on your Unadjusted Account Value on the effective date of Highest Daily Lifetime Income. You and your Financial Professional should carefully consider whether terminating your existing benefit and electing Highest Daily Lifetime Income is appropriate for you. We reserve the right to waive, change and/or further limit the election frequency in the future. If you wish to elect this benefit and you are currently participating in a Systematic Withdrawal program, amounts withdrawn under the program must be taken on a pro rata basis from your Annuity’s Sub-accounts (i.e., in direct proportion to the proportion that each such Sub-account bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Highest Daily Lifetime Income so long as you participate in a Systematic Withdrawal program in which withdrawals are not taken pro rata. Termination of the Benefit You may terminate Highest Daily Lifetime Income at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates upon the first to occur of the following: (i) your termination of the benefit, D-8
(ii) your surrender of the Annuity, (iii) your election to begin receiving annuity payments (although if you have elected to receive the Annual Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount) (iv) our receipt of Due Proof of Death of the Owner or Annuitant (for entity-owned annuities) (v) both the Unadjusted Account Value and Annual Income Amount equal zero, or (vi) you cease to meet our requirements as described in “Election of and Designations under the Benefit” above. “Due Proof of Death” is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary. Upon termination of Highest Daily Lifetime Income other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. However, if the amount in the Sub-accounts is not enough to pay the charge, we will reduce the fee to no more than the amount in the Sub-accounts. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Sub-accounts, and (ii) unless you are participating in an asset allocation program (i.e., Static Re-balancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Sub-account to your variable Investment Options, pro rata (i.e. in the same proportion as the current balances in your variable Investment Options). If, prior to the transfer from the AST Investment Grade Bond Sub-account, the Unadjusted Account Value in the variable Investment Options is zero, we will transfer such amounts to the AST Money Market Sub-account. If a surviving spouse elects to continue the Annuity, Highest Daily Lifetime Income terminates upon Due Proof of Death. The spouse may newly elect the benefit subject to the restrictions discussed above. How Highest Daily Lifetime Income Transfers Unadjusted Account Value Between Your Permitted Sub-accounts and the AST Investment Grade Bond Sub-account An integral part of Highest Daily Lifetime Income (including Highest Daily Lifetime Income with LIA and Spousal Highest Daily Lifetime Income) is the predetermined mathematical formula used to transfer Unadjusted Account Value between the Permitted Sub-accounts and a specified bond fund within the Advanced Series Trust (the AST Investment Grade Bond Sub-account, referred to in this section as the “Bond Sub-account”). This predetermined mathematical formula (“formula”) runs each Valuation Day that the benefit is in effect on your Annuity and, as a result, transfers of Unadjusted Account Value between the Permitted Sub-accounts and the Bond Sub-account can occur on any Valuation Day subject to the conditions described below. Only the predetermined mathematical formula can transfer Unadjusted Account Value to and from the Bond Sub-account, and thus you may not allocate Purchase Payments to or make transfers to or from the Bond Sub-account. We are not providing you with investment advice through the use of the formula nor does the formula constitute an investment strategy that we are recommending to you. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime Income. The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Unadjusted Account Value or the Protected Withdrawal Value. The formula is set forth in Appendix I (and is described below). As indicated above, we limit the Sub-accounts to which you may allocate Unadjusted Account Value if you elect Highest Daily Lifetime Income. For purposes of these benefits, we refer to those permitted Investment Options as the “Permitted Sub-accounts”. Because these restrictions and the use of the formula lessen the risk that your Unadjusted Account Value will be reduced to zero while you are still alive, they also reduce the likelihood that we will make any lifetime income payments under this benefit. They may also limit your upside potential for growth. If you are participating in Highest Daily Lifetime Income and also are participating in the 6 or 12 Month DCA Program, and the formula under the benefit dictates a transfer from the Permitted Sub-accounts to the Bond Sub-account, then the amount to be transferred will be taken entirely from the Sub-accounts, provided there is sufficient Unadjusted Account Value in those Sub-accounts to meet the required transfer amount. Only if there is insufficient Unadjusted Account Value in those Sub-accounts will an amount be transferred from the DCA MVA Options. For purposes of the discussion below concerning transfers from the Permitted Sub-accounts to the Bond Sub-account, amounts held within the DCA MVA Options are included within the term “Permitted Sub-accounts”. Thus, amounts may be transferred from the DCA MVA Options in the circumstances described above and in the section of the prospectus entitled 6 or 12 Month Dollar Cost Averaging Program. Any transfer dictated by the formula out of the Bond Sub-account will only be transferred to the Permitted Sub-accounts, not the DCA MVA Options. We will not assess any Market Value Adjustment with respect to transfers under the formula from the DCA MVA Options. D-9
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 174 and 175:
GUARANTEED RETURN OPTION PLUS II (G
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:
Page 212 and 213:
Sub-Accounts Accumulation Unit Valu
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231: PREMIER RETIREMENT L SERIES Pruco L
Page 232 and 233: Sub-Accounts Accumulation Unit Valu
Page 234 and 235: Sub-Accounts PREMIER RETIREMENT C S
Page 242 and 243: [THIS PAGE INTENTIONALLY LEFT BLANK
Page 244 and 245: Annuity Comparison X Series B Serie
Page 246 and 247: The shaded values indicate the high
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 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 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 298 and 299: If the formula ratio is less than a
Page 302 and 303: We reserve the right to waive the l
Page 306 and 307: If the formula ratio is less than a
Page 310 and 311: ▪ T - the amount of a transfer in
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 322 and 323: income, and dividend income), pensi
Page 324 and 325: c. Made to a Beneficiary or to your
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?