403_b_ Sticker - Prudential Annuities

FEES AND CHARGESThe charges under the Annuity is designed to cover, in the aggregate, our direct and indirect costs of selling, administering andproviding benefits under the Annuity. They are also designed, in the aggregate, to compensate us for the risks ofloss we assume.If, as we expect, the charges that we collect from the Annuity exceeds our total costs in connection with the Annuity, we will earn aprofit. Otherwise we will incur a loss. For example, American Skandia may make a profit on the Insurance Charge if, over time,the actual costs of providing the guaranteed insurance obligations under the Annuity are less than the amount we deduct for theInsurance Charge. To the extent we make a profit onthe Insurance Charge, such profit may be used for any other corporatepurpose, including payment of other expenses that American Skandia incurs in promoting, distributing, issuing and administeringthe Annuity.The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risksthat we will incur. In most cases, this prospectus identifies such expenses or risks in the name of the charge; however, the fact thatany charge bears the name of, or is designed primarily to defray a particular expense or risk does not mean that the amount wecollect from that charge will never be more than the amount of such expense or risk, nor does it mean that we may not also becompensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the Annuity. A portion ofthe proceeds that American Skandia receives from charges that apply to the Sub-accounts may include amounts based on marketappreciation of the Sub-account values.WHAT ARE THE CONTRACT FEES AND CHARGES?There is no Contingent Deferred Sales Charge appliedifyou surrender your Annuity or make a partial withdrawal.Transfer Fee: Currently, you may make twenty (20) free transfers between investment options each Annuity Year. We will charge$10.00 for each transfer after the twentieth in each Annuity Year. We do not consider transfers made as part of a Dollar CostAveraging, Automatic Rebalancing or asset allocation program when we count the twenty free transfers. All transfers made onthesame day will be treated as one (1) transfer. Renewals or transfers of Account Value from a Fixed Allocation at the end of itsGuarantee Period are not subject to the Transfer Fee and are not counted toward the twenty free transfers. We may reduce thenumber of free transfers allowable each Annuity Year (subject to a minimum of twelve) without charging a Transfer Fee unlessyou make use of electronic means to transmit your transfer requests. We may eliminate the Transfer Fee for transfer requeststransmitted electronically or through other means that reduce our processing costs. If enrolled in any program that does not permittransfer requests to be transmitted electronically, the Transfer Fee will not be waived.Annual Maintenance Fee: During the accumulation period we deduct an Annual Maintenance Fee. The Annual Maintenance Feeis $35.00 or 2% of your Account Value invested in the Sub-accounts whichever is less. This fee will be deducted annually on theanniversary of the Issue Date of your Annuity or, if you surrender your Annuity during the Annuity Year, the fee is deducted at thetime of surrender. Currently, the Annual Maintenance Fee is only deducted if your Account Value is less than $50,000 on theanniversary of the Issue Date or at the time of surrender. We do not impose the Annual Maintenance Fee upon annuitization or thepayment of a Death Benefit. We may increase the Annual Maintenance Fee. However, any increase will only apply to Annuitiesissued after the date of the increase. For beneficiaries that elect the Beneficiary Continuation Option, the Annual Maintenance Feeis the lesser of $30 or 2% of Account Value. For a non-Qualified Beneficiary Continuation Option, the fee is only applicable if theAccount Value is less than $25,000 at the time the fee is assessed.Tax Charge: Several states and some municipalities charge premium taxes or similar taxes on annuities that we are required topay. The amount of tax will vary from jurisdiction to jurisdiction and is subject to change. The tax charge currently ranges up to3 1 ⁄ 2 %ofyour Purchase Payment and is designed to approximate the taxes that we are required to pay. Wegenerally will deduct thecharge at the time the tax is imposed, but may also decide to deduct the charge from each Purchase Payment at the time of awithdrawal or surrender of your Annuity or at the time you elect to begin receiving annuity payments. We may assess a chargeagainst theSub-accounts and theFixed Allocations equal to any taxes which may be imposed upon the separate accounts.We will pay company income taxes on the taxable corporate earnings created bythis separate account product. While we mayconsider company income taxes when pricing our products, we do not currently include such income taxes in the tax charges youpay under the Annuity. We will periodically review the issue of charging for these taxes and may impose a charge in the future.In calculating our corporate income tax liability, we derive certain corporate income tax benefits associated with the investment ofcompany assets, including separate account assets, which are treated as company assets under applicable income tax law. Thesebenefits reduce our overall corporate income tax liability. Under current law, such benefits may include foreign tax credits andcorporate dividends received deductions. We do not pass these tax benefits through to holders of the separate account annuitycontracts because (i) the contract owners are not the owners of the assets generating these benefits under applicable income tax lawand (ii) we do not currently include company income taxes in the tax charges you pay under the contract.Insurance Charge: We deduct an Insurance Charge daily. The charge is assessed against the daily assets allocated to theSub-accounts and is equal to the amount indicated under “Summary of Contract Fees & Charges”. The Insurance Charge isthe32