Benefits When Your Employment Ends - Prudential Financial · 2015-06-01 · Benefits When Your Employment Ends ... FICA Taxes ... The following information is designed to assist you

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Benefits When Your Employment Ends

The PESP and Stock Plans sections of this document constitute part of a prospectus covering securities that have been registered under the Securities Act of 1933.

Benefits When Your Employment Ends—Page i

Important Notice This booklet is intended to help you understand the main features of the benefits when your employment ends applicable to eligible Employees and to provide information regarding your benefits.

This booklet is not a substitute for the official Plan Document(s), which governs the operation of the benefits described. All terms and conditions of these Plans, including your eligibility and any benefits, will be determined pursuant to and are governed by the provisions of the applicable Plan Document(s). If there is any discrepancy between the information in this booklet or in any other Prudential materials relating to the benefits described, and the actual Plan Document(s), or if there is a conflict between information discussed by anyone acting on Prudential’s behalf and the actual Plan Document(s), the Plan Document(s), as interpreted by the applicable Plan Administrator in its sole discretion, will always govern.

The Prudential Employee Savings Plan (PESP) portion of this booklet constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933.

The Stock Plans portion of this booklet constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933.

Prudential may, in its sole discretion, modify, amend, suspend or terminate any and all of the policies, programs, Plans and benefits, including those described in this booklet, in whole or in part, at any time, without notice to or consent of any participant, employee or former employee to the extent permissible under applicable law.

Nothing contained in this booklet is intended to constitute or create a contract of employment, nor shall it constitute or create the right to remain associated with or in the employ of Prudential for any particular period of time. In addition, no oral or written statements made by anyone acting on Prudential’s behalf are intended to create the right to remain associated with or in the employ of Prudential for any particular period of time. Employment with Prudential is employment-at-will. This means that either you or Prudential may terminate the employment relationship at any time, with or without cause or notice.

For detailed information on specific benefits programs, see your applicable Summary Plan Description (SPD) booklet. This booklet is not intended to address your situation if you are eligible to Retire when your employment ends, or you transfer to a different Affiliate. If you are in one of these situations, you should instead refer to the applicable SPD booklet, including any subsequent related Summaries of Material Modifications (SMMs) of the SPD booklet, or your booklet entitled Benefits Upon Retirement.

For more details on any Plan or program, please refer to your SPD booklets and any subsequent related SMMs of the SPD booklets.

Benefits When Your Employment Ends—Page ii

Inside You Will Find… Section I - Health Care and Personal Protection Programs ................................................................................................ 1 Introduction .................................................................................................................................................................................... 2 Status of Benefits When Employment Ends ............................................................................................................................ 3 Medical, Dental and Vision....................................................................................................................................................... 12

When Coverage Ends .................................................................................................................................................... 12 Continuing Coverage...................................................................................................................................................... 12

Cost of Coverage ............................................................................................................................................... 12 When You Are Eligible to Enroll ...................................................................................................................... 12 If You (or Your Dependent) Become Disabled ............................................................................................. 13 Availability of Additional Medical Continuation Coverage........................................................................ 13 COBRA-Like Coverage for Qualified Adults .................................................................................................. 14

Cost of COBRA-Like Coverage ........................................................................................................... 14 When Qualified Adults Are Eligible to Enroll................................................................................... 14

Health Savings Account Fees ...................................................................................................................................... 14 Group Life and Accident ............................................................................................................................................................ 15

When Your Coverage as an Active Employee Ends ................................................................................................ 15 Conversion Provision ..................................................................................................................................................... 15

To Convert Coverage ........................................................................................................................................ 16 Group Universal Life Insurance Portability Provision ............................................................................................. 16 Group Universal Life Insurance Cash Accumulation Fund .................................................................................... 16 Dependent Term Life Insurance Portability Provision ............................................................................................ 16

Disability ....................................................................................................................................................................................... 18 When Coverage Ends .................................................................................................................................................... 18 Continuing Coverage...................................................................................................................................................... 18

Long Term Care ............................................................................................................................................................................ 19 Continuing Coverage...................................................................................................................................................... 19

Flexible Spending Accounts ..................................................................................................................................................... 20 When Contributions End ............................................................................................................................................... 20 Reimbursements After Your Employment Has Ended ............................................................................................. 20 Continuing Coverage...................................................................................................................................................... 21

Health Care Reimbursement Account and Limited Purpose HCRA......................................................... 21 Dependent Care Reimbursement Account ................................................................................................... 21

Group Legal Program .................................................................................................................................................................. 22 When Coverage Ends .................................................................................................................................................... 22 Extension of Benefits ..................................................................................................................................................... 22

Wellness Programs..................................................................................................................................................................... 23 Employee Assistance Program, Health Coaching Program and Best Doctors Program ................................. 23

When Coverage Ends ....................................................................................................................................... 23 Continuing Coverage ........................................................................................................................................ 23

Clinic Program ................................................................................................................................................................. 23

Benefits When Your Employment Ends—Page iii

When Coverage Ends ....................................................................................................................................... 23 Continuing Coverage ........................................................................................................................................ 23

Contact Information .................................................................................................................................................................... 24 Section II - Capital Accumulation Plans ................................................................................................................................ 26 Introduction .................................................................................................................................................................................. 27

How to Access Information About Your Capital Accumulation Plans ................................................................. 27 PESP and SESP .................................................................................................................................................. 27

PESP Terms and Conditions ............................................................................................................... 28 Retirement Plan and Supplemental Retirement Plan ................................................................................. 28

Prudential Employee Savings Plan ......................................................................................................................................... 29 What Happens to Your PESP Account When Your Employment Ends ................................................................ 29 How Your Vested Account Balance Can Be Paid .................................................................................................... 30 Tax Implications .............................................................................................................................................................. 32 Requesting a Distribution .............................................................................................................................................. 33 ESOP Cash Dividend Election and Dividend Distributions ..................................................................................... 33 Outstanding Loans .......................................................................................................................................................... 33 What Happens Upon Your Death ................................................................................................................................ 33

Requesting a PESP Beneficiary Designation Form ..................................................................................... 34 Section 16 Officers ......................................................................................................................................................... 34

Prudential Supplemental Employee Savings Plan............................................................................................................... 35 When Contributions End ............................................................................................................................................... 35 What Happens to Your SESP Account Once Your Employment Ends.................................................................. 35

Retirement Plan ........................................................................................................................................................................... 37 Accessing Retirement Plan Information Through the Prudential Benefits Center Website ........................... 37

How to Log In and View Retirement Plan Information ............................................................................... 37 Using the Prudential Benefits Center Website to Plan for Your Retirement ......................................... 38 How to Name a Beneficiary ............................................................................................................................ 39 Using the Prudential Benefits Center Website to Begin the Retirement Process ............................... 40

Which Retirement Plan Formula Applies to You ...................................................................................................... 40 Cash Balance Formula ............................................................................................................................................................... 41

What Happens to Your Cash Balance Formula Benefit Once Your Employment Ends .................................... 41 When You May Commence Your Vested Cash Balance Formula Benefit .......................................................... 41

If You Are Not Vested ....................................................................................................................................... 41 If You Are Vested ............................................................................................................................................... 41

How Your Vested Cash Balance Formula Benefit Can Be Paid ............................................................................ 42 What Happens Upon Your Death ................................................................................................................................ 43

If You Die Before Cash Balance Formula Benefit Payments Commence .............................................. 43 If You Die After Cash Balance Formula Benefit Payments Commence .................................................. 43

For More Information ..................................................................................................................................................... 43 Traditional Pension Formula .................................................................................................................................................... 44

What Happens to Your Traditional Pension Formula Benefit Once Your Employment Ends ........................... 44 When You May Commence Your Vested Traditional Pension Formula Benefit ................................................ 44

Benefits When Your Employment Ends—Page iv

If You Are Not Vested ....................................................................................................................................... 44 If You Are Vested ............................................................................................................................................... 44

How Your Traditional Pension Formula Benefit Can Be Paid ................................................................................ 44 Optional Forms of Payment:............................................................................................................................. 44

What Happens Upon Your Death ................................................................................................................................ 45 If You Die Before Traditional Pension Formula Benefit Payments Commence .................................... 45 If You Die After Traditional Pension Formula Benefit Payments Commence ........................................ 45

For More Information ..................................................................................................................................................... 45 Supplemental Retirement Plan ................................................................................................................................................ 46

Accessing Supplemental Retirement Plan Information Through the Prudential Benefits Center Website......................................................................................................................................................................... 46

If You Are Eligible to Receive a Benefit Under the Supplemental Retirement Plan’s Cash Balance Formula ......................................................................................................................................................................... 46

How Your Supplemental Retirement Plan Benefit Under the Cash Balance Formula Will Be Paid .................................................................................................................................................... 46

When Your Supplemental Retirement Plan Benefit Under the Cash Balance Formula Will Be Paid .................................................................................................................................................... 46

FICA Taxes .......................................................................................................................................................... 47 If You Are Eligible to Receive a Benefit Under the Supplemental Retirement Plan’s Traditional Pension

Formula ......................................................................................................................................................................... 48 How Your Supplemental Retirement Plan Benefit Under the Traditional Pension Formula

Will Be Paid .................................................................................................................................................... 48 When Your Supplemental Retirement Plan Benefit Under the Traditional Pension Formula

Will Be Paid .................................................................................................................................................... 48 FICA Taxes .......................................................................................................................................................... 49

Survivor Benefits ............................................................................................................................................................ 50 Section III - Stock Plans ............................................................................................................................................................ 51 Introduction .................................................................................................................................................................................. 52

Status of Stock Grants When Your Employment Ends ............................................................................................ 52 Prudential Stock Purchase Plan .................................................................................................................................. 52 How to Access Information About Your Stock Plan Accounts ............................................................................. 53

E*TRADE Account ............................................................................................................................................. 53 How to Activate Your E*TRADE Account ........................................................................................ 53

MullinTBG Account ........................................................................................................................................... 54 If You Have Questions ................................................................................................................................................... 54

Benefits When Your Employment Ends—Page 1

Section I - Health Care and Personal Protection Programs


Introduction The following information is designed to assist you in understanding what generally happens to your health care and personal protection program benefits from Prudential once your employment with Prudential and its Affiliates ends. Prudential is The Prudential Insurance Company of America and its Participating Affiliates. This information does not replace or supersede any information that can be found in the Summary Plan Description (SPD) booklets, including any subsequent related Summaries of Material Modification (SMMs) of the SPD booklets or the Plan Document for each plan or program. Please read this material carefully.

Beginning on page 3 of this booklet, you will find a table briefly outlining the status of benefits when your employment ends and the next steps to take. The remainder of this booklet provides more detailed information regarding the status of your benefits when your employment with Prudential and its Affiliates ends. Terms whose first letters are capitalized appear in the Glossary of each applicable SPD booklet, including any subsequent related SMMs of the SPD booklet.

If you have any questions regarding the health care and personal protection programs, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits. Prudential Benefits Center Representatives are available to assist you between 8 a.m. and 6 p.m., Eastern time, Monday through Friday, except on holidays. For the hearing-impaired, please contact your local relay service.

Defense of Marriage Act (DOMA) and Same-Sex Marriage

In 2013, the U.S. Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. As a result, validly married same-sex and opposite-sex couples must be given equal treatment under federal law, which includes the Employee Retirement Income Security Act of 1974, as amended (ERISA) and the Internal Revenue Code.

If you are in a valid same-sex marriage, your spouse will be eligible for any spousal coverage and/or benefit options available under Prudential’s health and welfare, retirement and 401(k) savings plans, assuming all other eligibility requirements are satisfied.

The Prudential Employee Benefits Department is working to implement all of the changes necessary to ensure that Prudential’s employee benefit plan administration is compliant with the changes to DOMA made by the U.S. Supreme Court’s ruling. We are still awaiting additional guidance from federal agencies, but the process is well under way. Please keep in mind, however, that this booklet may not reflect all recent changes that may apply to your benefits.

• If you have Health and Welfare benefits questions, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health & Welfare benefits.

• If you have Prudential Employee Savings Plan (PESP) questions, call Prudential Retirement at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for 401(k), or call 1-800-PRU-PESP (1-800-778-7377).

• If you have questions about The Prudential Merged Retirement Plan, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Pension.


Status of Benefits When Employment Ends This table briefly outlines the status of your health care and personal protection program benefits when your employment with Prudential and its Affiliates ends. For detailed information, you should review your applicable SPD booklets for each active Employee benefits program and any subsequent related SMMs of the SPD booklets.

Benefits Program/Plan

When Coverage Ends

Continuation Coverage Available To Continue Coverage…

Health Care (Medical, Dental and Vision)

Coverage ends at the end of the pay period in which your employment ends. If you maintain a Cigna Health Savings Account (Cigna HSA) administered by JPMorgan Chase in connection with the High Deductible Health Program (HDHP): You may retain your Health Savings Account (HSA) as an HSA independently owned by you and administered by JPMorgan Chase. You will be responsible for paying the monthly account maintenance fees and investment account maintenance fees.

You may elect COBRA continuation of the active coverage at 102% of the applicable full Cost of coverage (generally for a maximum of 18 months). You may elect coverage for yourself and your eligible dependents* within 60 days of the date of the COBRA notice or 60 days from the date your coverage ceases, whichever is later.

To continue your coverage through COBRA, make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center and submit any applicable premium within the required timeframe indicated on your COBRA Election Form. COBRA enrollment materials will be automatically mailed to your home a few weeks after your employment ends. If you do not receive your COBRA Election Package within a few weeks after your employment ends, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA.

If you maintain a Cigna HSA administered by JPMorgan Chase in connection with the HDHP: You will receive information from JPMorgan Chase explaining your options. If you do not make an election, your HSA will automatically transition to an HSA independently owned by you and administered by JPMorgan Chase. You will be responsible for paying the monthly account maintenance fees and investment account maintenance fees. For more information, you may contact JPMorgan Chase by visiting the JPMorgan Chase website at www.chase.com/hsa or by calling JPMorgan Chase at 1-866-524-2483.

* If you wish to select continued coverage for a Qualified Adult, as defined in the various SPD booklets for the programs included in the table above, contact your carrier to ensure that COBRA-like continuation coverage is available for your Qualified Adult.



When Coverage Ends


Group Life and Accident

Basic Group Life* Coverage ends on the date your employment ends.

You have the option to convert your lost coverage to an individual policy at your own expense, without evidence of good health, provided you do so before the later of:

• 31 days after the date your coverage ends; or

• 15 days after you receive your package from the Prudential Benefits Center containing your notice of conversion, but no more than 91 days after the date your coverage ends.

To continue coverage via the conversion feature: About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert your Basic Group Life coverage to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday. You may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits with any questions regarding the conversion notice.

Basic Accidental Death & Dismemberment

Generally, coverage ends on the date your employment ends.

None Not applicable

Business Travel Accident


None Not applicable

* Please note that waiver of premium may apply to this coverage. Please refer to the Life and Accident Insurance Programs SPD booklet and any subsequent related SMMs of the SPD booklet for details.



When Coverage Ends


Group Universal Life*

Coverage ends at the end of the pay period in which your employment ends.

You may elect to continue this coverage via the portability feature and pay the required premium within 31 days of the date your coverage ends.

Or, if you wish to convert all or any part of your coverage to an individual policy, you must notify the insurance carrier of your intent to do so and pay the required contributions before the later of:



To continue coverage via the portability feature: About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to port lost coverage. To port coverage, follow the rules as outlined in this notice. For more information about this notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits. To continue coverage via the conversion feature: About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert your Group Universal Life coverage to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday. You may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits with any questions regarding the conversion notice.

To review and/or update (if necessary) your Beneficiary designation: You may visit the Prudential Benefits Center website (at

* Please note that waiver of premium may apply to this coverage. Please refer to the Life and Accident Insurance Programs SPD booklet and any subsequent related SMMs of the SPD booklet for details.



When Coverage Ends


Group Universal Life (continued)

www.prubenefitscenter.com), then click on the Health & Welfare Benefits tab and select “Beneficiaries,” or call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

Supplemental Accidental Death & Dismemberment


None Not applicable

Dependent Term Life


Your eligible dependents may elect to continue this coverage via the portability feature and pay the required premiums within 31 days of the date your coverage ends. Please see the Life and Accident Insurance Programs SPD booklet and any subsequent related SMMs of the SPD booklet for more information.

Or, your eligible dependents may elect to continue this coverage by converting to an individual policy. If your eligible dependents wish to convert all or any part of their coverage to an individual policy, you must notify the insurance carrier of your intent to do so and pay the required contributions before the later of:



To continue coverage via the portability feature: About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to port lost coverage. To port coverage, follow the rules as outlined in this notice. For more information about this notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits. To continue coverage via the conversion feature: About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert your Dependent Term Life to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday. You may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits with any questions regarding the conversion notice.



When Coverage Ends


Survivor Benefits Life Insurance1


If you wish to convert all or any part of your coverage to an individual policy, you must notify the insurance carrier of your intent to do so and pay the required contributions before the later of:



To continue coverage via the conversion feature:

About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert your Survivor Benefits Life to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday. You may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits with any questions regarding the conversion notice.

Short Term Disability2


None Not applicable

Long Term Disability


If you were covered under the Long Term Disability Program for at least 12 consecutive months, you may elect to continue this coverage via the conversion feature within 60 days of the date your coverage ends.

To continue coverage via the conversion feature: About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert coverage, follow the rules as outlined in this notice. For more information about this notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

1 Please note that waiver of premium may apply to this coverage. Please refer to the Life and Accident Insurance Programs SPD booklet and any subsequent related SMMs of the SPD booklet for details.

2 Short Term Disability coverage (except certain state-mandated benefits) is not available to Agency Distribution Sales Professionals (i.e., Financial Professionals, Financial Professional Associates and Prudential Representatives) with an adjusted service date of January 1, 2005, or after.



When Coverage Ends


Optional Long Term Disability


If you were covered under the Optional Long Term Disability Program for at least 12 consecutive months, you may elect to continue this coverage via the conversion feature within 60 days of the date your coverage ends.

To continue coverage via the conversion feature:

About two weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert coverage, follow the rules as outlined in this notice. For more information about this notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

Long Term Care (LTC)

When your employment with Prudential and its Affiliates ends, your LTC coverage is guaranteed renewable by the insurance carrier and will continue as long as you pay your premiums on time and do not exhaust your lifetime maximum.

Your LTC coverage will continue on a direct billing basis. Your premium rate will not be affected by this change. Your coverage is guaranteed renewable by the insurance carrier and will continue as long as you pay your premiums on time and do not exhaust your lifetime maximum. Following the end of your employment, you will receive a direct bill from the insurance carrier. You must pay the premium shown on the bill within 60 days of the premium due date. If you do not pay the premium by that date, your coverage will terminate retroactive to the last day of the month in which your employment ends.

Your coverage will continue on a direct billing basis as long as you pay your premiums on time and do not exhaust your lifetime maximum. If you choose to subsequently change or discontinue your coverage, you will need to notify the Long Term Care Customer Service Center at 1-866-439-8631 between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.



When Coverage Ends


Flexible Spending Accounts

Health Care Reimbursement Account (HCRA) and Limited Purpose HCRA

Coverage ends at the end of the pay period in which your employment ends. Generally, you may request reimbursement from your HCRA or Limited Purpose HCRA for eligible health care expenses (dental and vision expenses only for the Limited Purpose HCRA) incurred through your final pay period. All claims and supporting documentation must be received by Cigna on or before June 30 of the year following the Calendar Year in which your employment ends.

You may continue to contribute to the HCRA or Limited Purpose HCRA on an After-Tax basis for the remainder of the Calendar Year by electing COBRA continuation coverage. Generally, if you do not continue HCRA or Limited Purpose HCRA participation through COBRA, only those eligible expenses (dental and vision expenses only for the Limited Purpose HCRA) incurred prior to the termination of coverage will be eligible for reimbursement. If you do continue HCRA or Limited Purpose HCRA participation through COBRA through the end of the Calendar Year, you may continue to incur eligible expenses through March 15 of the following year to apply against your HCRA or Limited Purpose HCRA balance.

To continue your coverage through COBRA, make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center and submit any applicable premium within the required timeframe indicated on the COBRA Election Form. COBRA materials will be automatically mailed to your home a few weeks after your employment ends. If you do not receive your COBRA Election Package within a few weeks after your employment ends, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA.



When Coverage Ends


Dependent Care Reimbursement Account (DCRA)*

Coverage ends at the end of the pay period in which your employment ends. Generally, the DCRA* will reimburse you for eligible expenses incurred through the end of the pay period during which your employment ends. Please note: Under the terms of the Prudential Flexible Benefits Plan, DCRA* expenses are eligible only if the dependent care provided allows you to work or to seek employment. All claims and supporting documentation must be received by Cigna on or before June 30 of the year following the Calendar Year in which your employment ends.

You may not make additional DCRA* contributions after your employment ends. Generally, you may continue to incur eligible dependent care expenses through the end of the pay period in which your employment ends to apply against any balance remaining in your DCRA. Please note: Under the terms of the Prudential Flexible Benefits Plan, DCRA* expenses are eligible only if the dependent care provided allows you to work or to seek employment.

You should continue to submit eligible claims to Cigna for reimbursement. Please note: Under the terms of the Prudential Flexible Benefits Plan, DCRA* expenses are eligible only if the dependent care provided allows you to work or seek employment.

Group Legal Program*

Generally, coverage ends at the end of the pay period in which your employment ends.

If you experienced an event requiring legal services and retained an attorney prior to your employment ending, coverage will be extended for that event until services are complete.

If you wish to continue coverage for legal services already in progress, call Hyatt Legal Plans at 1-800-821-6400 between 8 a.m. and 7 p.m., Eastern time, Monday through Friday, or visit the Hyatt Legal Plans website (at www.legalplans.com).

* The Dependent Care Reimbursement Account and the Group Legal Program are not available to Agency Distribution Financial Professional Associates or Agency Distribution Financial Professionals. Please note: Prudential Representatives are eligible for these Programs.



When Coverage Ends


Wellness Programs

Employee Assistance Program, Health Coaching Program, Best Doctors Program

Coverage ends at the end of the pay period during which your employment ends.

COBRA coverage is available at no cost to you and your eligible dependents for up to 18 months.

To continue your coverage through COBRA, make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center by the date indicated on the COBRA Election Form. COBRA materials will be automatically mailed to your home after your employment ends.

If you do not receive your COBRA Election Package within a few weeks after your employment ends, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA.

Clinic Program Coverage ends at the end of the pay period during which your employment ends.

COBRA coverage is available at no cost to you for up to 18 months.

To continue your coverage through COBRA, make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center by the date indicated on the COBRA Election Form. COBRA materials will be automatically mailed to your home after your employment ends. If you do not receive your COBRA Election Package within a few weeks after your employment ends, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA.


Medical, Dental and Vision When Coverage Ends Your coverage ends at the end of the pay period in which your employment ends (except for your rights under COBRA as described below).

Continuing Coverage If you lost coverage because your employment with Prudential and its Affiliates ended, you and/or your eligible dependents may elect to continue coverage for up to 18 months (the number of months is reduced if you become entitled to Medicare while covered under COBRA) under terms provided by the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (COBRA) or through COBRA-like coverage for Qualified Adults (Domestic Partners, Qualified Same-Sex Spouses and Extended Family Members). Eligibility for Qualified Same-Sex Spouses is limited. Please see the applicable Summary Plan Description (SPD) booklets and the subsequent related Summaries of Material Modifications (SMMs) for more information about eligibility.

To be eligible for COBRA coverage, you must experience a Qualifying Event, such as the loss of a job. However, Prudential is not required to offer COBRA if your loss of employment is based on gross misconduct.

Cost of Coverage If you wish to purchase COBRA continuation coverage, you will be required to pay the total Cost of this group coverage, plus an additional 2% administrative fee.

There is no cost for Vision Discount Program COBRA continuation coverage, but you must make a COBRA election.

When You Are Eligible to Enroll You and/or your eligible dependents have 60 days from the date on the notice of the right to continue coverage or 60 days from the date your coverage ceases, whichever is later, to elect continuation coverage. The notice of the right to continue coverage and COBRA election form will be automatically mailed to your home.

Please note: If you choose to continue coverage, you must make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center within 60 days after the later of the following dates:

• The date on your notice of the right to continue coverage; or

• The date your coverage ends.

If you have questions about receiving your notice of the right to continue coverage or the election process, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA.

You have 45 days from the date of your COBRA election to remit your first premium payment. Your invoice will include your election date and a reference to the 45-day timing, as well as the amount of the first payment. COBRA continuation coverage will not become effective until your election and your first premium payment are received. If your initial monthly payment is timely received, you will be credited for coverage retroactive to the day after your active coverage terminated.


Please note: From the time of the termination of your active coverage through the date that your health care carriers receive notification from the Prudential Benefits Center that you have elected and paid for COBRA continuation coverage, the carriers (for example, Aetna, Cigna, Davis Vision, Express Scripts) will not recognize you as a covered participant under the program. Once you elect COBRA coverage and, if applicable, pay for it, the Prudential Benefits Center will alert your carrier(s) that you have been reinstated, retroactive to the day after your coverage as an active Employee ended. Only then will your health care carrier(s) reinstate coverage. Prudential, therefore, strongly encourages timely election of, and, if applicable, payment for, COBRA continuation coverage. Once verification is received, the carrier(s) will process claims for the entire period covered, but this may require payment for medical, dental, vision and/or prescription drug expenses up-front, and submission of paper claim forms once coverage has been retroactively reinstated.

If you do elect coverage, Prudential suggests that you contact your health care carriers for detailed information on reimbursement of claims incurred during the election period.

If You (or Your Dependent) Become Disabled If you and/or an eligible dependent should become disabled (as defined under the Social Security Act) within 60 days of the date your employment with Prudential and its Affiliates ends, COBRA coverage may be extended up to an additional 11 months, to a total of 29 months. If you wish to purchase this extended COBRA continuation coverage, you will be required to pay the full Cost of this coverage plus an additional 50% administrative fee. To qualify for this disability extension, you and/or your Spouse and/or Dependent Child(ren) must both notify the Prudential Benefits Center, and provide the Prudential Benefits Center with a copy of the “Notice of Award” letter from the Social Security Administration before the end of the original 18-month COBRA continuation period and within 60 days of the latest of the following events:

• The date of the disability determination by the Social Security Administration;

• The date the Qualifying Event occurred;

• The date coverage was lost or would be lost as a result of the Qualifying Event; or

• The date you and/or your Spouse and/or Dependent Child(ren) were informed, either through your SPD booklet or your initial notice of the right to continue coverage, of your responsibility to notify the Prudential Benefits Center and the procedures for providing such notice to the Prudential Benefits Center.

Please see the Medical Program, Dental Program and/or Vision Program SPD booklet and any subsequent related SMMs of the SPD booklets, for more information about COBRA continuation coverage.

Please note that, in the case of a disability, the process of applying for and receiving the determination from the Social Security Administration may take up to or more than six months. Therefore, you must apply as soon as possible in order to forward the Social Security disability determination before the end of the above deadlines. If these steps are not followed, the right to extend coverage from up to 18 months to up to 29 months will be lost.

Availability of Additional Medical Continuation Coverage If you meet certain eligibility requirements (in addition to other requirements, you must be at least age 50 with five years of Vesting Service when you leave Prudential), you may be eligible to participate in Prudential’s Medical Access Plan or Executive Medical Access Plan. Coverage under these Plans is not effective unless you elected to continue your medical coverage through COBRA and have been covered for the entire COBRA continuation period. The coverage is not subsidized by Prudential—you pay the full Cost of the coverage. For more information about these Plans and the eligibility requirements, you may contact the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then Medical Access Plan.


COBRA-Like Coverage for Qualified Adults COBRA continuation coverage is available only for Prudential Employees and the Spouse and Dependent Children of an Employee. However, Prudential will make available (within a specified time frame) continued coverage similar to COBRA at COBRA rates to a Qualified Adult (that is, a Domestic Partner, Qualified Same-Sex Spouse or an Extended Family Member) for a defined duration of time. Please note that not all program options allow COBRA-like coverage for a Qualified Adult. It is your responsibility to contact the carrier (for example, Aetna or Cigna) to verify whether COBRA-like continuation coverage is available for a Qualified Adult. In order to be eligible for this coverage, the Qualified Adult must be covered under the Medical, Dental and/or Vision Programs at the time the Employee’s employment with Prudential and its Affiliates ends.

Cost of COBRA-Like Coverage The Qualified Adult will be required to pay the total Cost of this group coverage, plus an additional 2% administrative fee.

When Qualified Adults Are Eligible to Enroll The Qualified Adult will have 60 days from the date of the notice of the right to continue coverage or 60 days from the date his/her coverage ceases, whichever is later, to elect this continuation coverage. The election form will be automatically mailed to the Employee’s home address a few weeks after his/her active coverage ends. Please note: If you choose to continue coverage, you must make your election on the Prudential Benefits Center website or by calling the Prudential Benefits Center no later than the election expiration date indicated on your notice of the right to continue coverage.

The Qualified Adult will have 45 days from the date of his/her COBRA election to remit the first premium payment. The invoice will indicate the due date and the amount of the first payment. Continuation of coverage will not become effective until the election and the first premium payment are received. The initial monthly payment will be credited for coverage retroactive to the day after active coverage terminated.

Health Savings Account Fees If you have a Cigna Health Savings Account (Cigna HSA) administered by JPMorgan Chase and your employment with Prudential ends, you may retain your Health Savings Account (HSA) administered by JPMorgan Chase. You will be responsible for paying the monthly account maintenance fees and investment account maintenance fees. You will receive information from JPMorgan Chase explaining your options. If you do not make an election, your HSA will transition automatically to an HSA independently owned by you and administered by JPMorgan Chase. For more information, you may contact JPMorgan Chase by visiting the JPMorgan Chase website at www.chase.com/hsa or by calling JPMorgan Chase at 1-866-524-2483.


Group Life and Accident When Your Coverage as an Active Employee Ends Basic Group Life Insurance, Basic Accidental Death & Dismemberment (AD&D) and Business Travel Accident coverages end on the date your employment with Prudential and its Affiliates ends.

Group Universal Life, Supplemental Accidental Death & Dismemberment, Dependent Term Life and/or Survivor Benefits Life Insurance coverages end at the end of the pay period in which your employment ends. However, if you are placed on a paid terminal leave of absence preceding your last day of employment, Basic AD&D and Business Travel Accident Insurance coverage ends on the last day you were actively at work before the start of the paid terminal leave.

Conversion Provision If you are enrolled in Basic Group Life1, Group Universal Life, Dependent Term Life1 and/or Survivor Benefits Life Insurance, you have the right to convert any lost coverage to an individual policy without providing evidence of good health. Following the end of your employment, you will receive a notice from the Prudential Benefits Center, regarding your right to convert lost coverage. If you wish to convert all or any part of your coverage, you must notify the insurance carrier of your intent to do so and pay the required contributions before the later of:



You may elect to convert your full amount of insurance or a reduced amount. If a death should occur within the time period during which you are entitled to convert your coverage, benefits will be payable as if your coverage had not terminated. These benefits are payable even if you did not apply for conversion. To obtain a conversion notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

Basic Accidental Death & Dismemberment, Supplemental Accidental Death & Dismemberment and Business Travel Accident coverages cannot be converted.

Rates for converted coverage are generally higher than those in force when you were an active Employee.

1 FOR MINNESOTA RESIDENTS ONLY: You may continue group life coverage, Dependent

Term Life and Survivor Benefits Life Insurance coverage for yourself and for your dependents, if applicable, in an amount equal to the amount of insurance in effect on the day your employment with Prudential ends by completing the appropriate Prudential form. You have until the date 60 days after the later of (1) the date your coverage ends and (2) the date you receive the letter to make your election. Coverage may be continued until the earliest of any of the following events:

• 18 months from the date your employment with Prudential ends;

• The date you cease to pay any required payments to continue group life insurance; or

• The date you become covered under any other group life insurance plan.

To continue coverage, contact the Prudential Group Life Services Division at 1-800-435-5171 and follow the prompts to speak with a representative.


To Convert Coverage To convert Basic Group Life, Group Universal Life, Dependent Term Life and/or Survivor Benefits Life Insurance coverage, please contact your Prudential agent or call the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday. To obtain a conversion notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

Group Universal Life Insurance Portability Provision In addition to your conversion rights under Group Universal Life Insurance (GUL), you have a right to continue coverage through the portability feature. Portability is a feature that allows you to continue your participation in the GUL Insurance coverage at the same coverage amount that was in force when your coverage ended; however, your portability rates as a terminated Employee are different (generally higher) than those that were in force while you were an active Employee. You may continue coverage, provided that (a) you apply for continued coverage within 31 days after the end of the pay period during which your employment with Prudential and its Affiliates ends, and (b) you continue to pay the required premiums. Once ported, your coverage may be maintained on a direct billing basis until you are age 100. If you elect to continue your coverage through the portability feature, you will be unable to exercise your conversion rights. However, you may convert if the group contract ends or you reach age 100. For more information about portability, contact the Prudential Group Life Services Division at 1-800-435-5171.

When your employment with Prudential and its Affiliates ends, you will receive a notice from the Prudential Benefits Center containing information regarding your right to port lost coverage. To port coverage, follow the rules as outlined in this notice. For more information about this notice, contact the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

If you elect to port your GUL coverage, your GUL rates will be higher than they were when you were an active Employee.

Group Universal Life Insurance Cash Accumulation Fund If you choose not to continue Group Universal Life Insurance coverage, either through conversion or portability, and you have a balance in your Group Universal Life Insurance Cash Accumulation Fund (GUL Fund), you have a choice of what to do with your balance. You may choose to have the total amount in your GUL Fund account (minus any outstanding loans and interest) paid out to you, or used to purchase Paid-Up Insurance.

If you choose not to continue GUL Insurance coverage, either through conversion or portability, and you do not have a balance in your GUL Fund, your coverage will end.

If any outstanding loan balance is defaulted upon purchase of Paid-Up Insurance or on termination of coverage, the loan amount will be treated as a distribution, all or part of which may be taxable. In addition, a full or partial surrender of Paid-Up Insurance may have tax consequences. For more information, please refer to the Life and Accident Insurance Programs SPD booklet, including any subsequent related SMMs of the SPD booklet, or consult your tax advisor.

IRS Circular 230 Disclosure: Neither Prudential nor its representatives are authorized to provide tax or legal advice or financial advice on behalf of the Plan. Any tax information provided is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. You are encouraged to consult with your tax, financial and/or legal advisors for advice regarding your particular situation.

Dependent Term Life Insurance Portability Provision Portability is a feature that allows your Spouse, Domestic Partner or Qualified Same-Sex Spouse and eligible Dependent Child(ren) to continue Dependent Term Life Insurance coverage after coverage would have otherwise terminated (i.e., due to a divorce, your death or your termination of employment with Prudential).


Please note: Portability is not permitted when coverage ends due to the following:

• You fail to make the required contributions; • You Retire; or • You become insured by another group life insurance program within 31 days of the date coverage for all

Employees ends. Portability rates are different (generally higher) than those that were in force while you were an active Employee.

Portability under the Dependent Term Life Insurance Program is permitted for Spouses, Domestic Partners or Qualified Same-Sex Spouses, as long as the Spouse, Domestic Partner or Qualified Same-Sex Spouse is not confined for medical care or treatment on the day before your Dependent Term Life Insurance coverage ends. Once ported, Spouse, Domestic Partner or Qualified Same-Sex Spouse coverage may be maintained on a direct billing basis until the Spouse, Domestic Partner or Qualified Same-Sex Spouse is age 80. You may also port coverage for your Dependent Child (even if you do not port Spouse, Domestic Partner or Qualified Same-Sex Spouse coverage), as long as the Dependent Child is not confined for medical care or treatment on the day before your Dependent Term Life Insurance coverage ends. Once ported, Dependent Child coverage may be maintained on a direct billing basis until the child is age 19, or age 23 if enrolled in school as a full-time student and wholly depends on you for support and maintenance.

Coverage will continue until the applicable age provided that (a) coverage is applied for by the longer of 31 days after your Dependent Term Life Insurance coverage ends or the number of days during which you have the right to convert your Basic Life Insurance to an individual life insurance contract, or in the case of death or divorce the number of days in which your Spouse, Domestic Partner or Qualified Same-Sex Spouse has the right to convert the Dependent Term Life Insurance to an individual life insurance contract, and (b) required premiums continue to be paid.

Coverage continued through the portability feature cannot also be converted. However, if your Spouse, Domestic Partner or Qualified Same-Sex Spouse or Dependent Child(ren) continues coverage through the portability feature and the ported coverage ends, coverage may then be converted. Conversion is not available when coverage ends due to coverage voluntarily lapsing because of non-payment.

For general information about porting coverage, or if you are a Minnesota resident, contact the Prudential Group Life Services Division at 1-800-435-5171. To obtain a portability notice, contact the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.


Disability (Short Term Disability2, Long Term Disability and Optional Long Term Disability)

When Coverage Ends Coverage ends on the date your employment with Prudential and its Affiliates ends.

Please note: If your separation from employment with Prudential is covered by the Worker Adjustment and Retraining Notification Act (the “WARN Act”), Prudential will provide you with a notice that the WARN Act applies. If the WARN Act applies to your separation from employment, you will remain covered under disability programs in which you are enrolled until you begin a leave of absence as indicated in the notice, if applicable.

Continuing Coverage Short Term Disability: Short Term Disability (STD) coverage may not be continued when your employment with Prudential and its Affiliates ends. However, if you became disabled prior to your last day of employment with Prudential and its Affiliates, disability payments may continue. For more details, see your Disability Program SPD booklet and any subsequent related SMMs of the SPD booklet.

Long Term Disability and Optional Long Term Disability: Long Term Disability (LTD) and Optional Long Term Disability (OLTD) coverage may be continued via the conversion feature within 60 days of the date your coverage ends so long as you are not Retirement-Eligible under the Prudential Merged Retirement Plan (the Retirement Plan) and you were covered under the LTD and OLTD Programs for at least 12 consecutive months. However, the provisions of the converted coverage and the cost of coverage may be different and/or higher than the Prudential program. A few weeks following the end of your employment, you will receive a notice from the Prudential Benefits Center that will contain information regarding your right to convert lost coverage. To convert coverage, follow the rules as outlined in this notice. For more information about this notice, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

If you have any questions regarding disability payments, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Disability.

2 Short Term Disability coverage (except certain state-mandated benefits) is not available to

Agency Distribution Sales Professionals (i.e., Financial Professionals, Financial Professional Associates and Prudential Representatives) with an adjusted service date of January 1, 2005, or after.


Long Term Care Continuing Coverage When your employment with Prudential and its Affiliates ends, your Long Term Care coverage will continue automatically on a direct billing basis. Your premium rate will not be affected by this change. Your coverage is guaranteed renewable by the insurance carrier and will continue as long as you pay your premiums on time and do not exhaust your Lifetime Maximum. Within 60 days of the premium due date, you must pay the premium shown on the bill. If you do not pay the premium by that date, your coverage will terminate retroactively to the last day of the month in which your employment ends.

Please call the Long Term Care Customer Service Center at 1-866-439-8631 between 8 a.m. and 8 p.m., Eastern time, Monday through Friday, for the following:

• If you have any questions;

• To change or discontinue your coverage;

• To provide a change of address; or

• To arrange to pay your premiums through monthly electronic funds transfer or on a quarterly, semi-annual or annual direct billing basis.


Flexible Spending Accounts When Contributions End Your Before-Tax contributions to the Flexible Spending Accounts (that is, Health Care Reimbursement Account [HCRA], Limited Purpose Health Care Reimbursement Account [Limited Purpose HCRA] and Dependent Care Reimbursement Account [DCRA]3) end at the end of the pay period in which your employment with Prudential and its Affiliates ends.

Reimbursements After Your Employment Has Ended If your employment ends mid-year, you will be eligible to submit claims for expenses as follows:

• You may request reimbursement from your HCRA or Limited Purpose HCRA for eligible health care expenses (dental and vision expenses only under the Limited Purpose HCRA) incurred from January 1, or the date your participation took effect, if later, through the end of the pay period during which your employment ends; and

• You may request reimbursement from your DCRA3 for eligible dependent care expenses incurred from January 1 or the date your participation took effect, if later, through the end of the pay period in which your employment ends.

Please note: Under the terms of the Prudential Flexible Benefits Plan, DCRA3 expenses are eligible only if the dependent care provided allows you to work or seek employment.

If your employment ends during a pay period that includes or ends on December 31, you may continue to incur eligible expenses through March 15 of the following year to apply against any balance remaining in your accounts.

Over-the-Counter (OTC) drugs and medicines are not considered eligible expenses under the HCRA (except for insulin and OTC drugs or medicines prescribed by a doctor).

Requests for reimbursement of these expenses, including supporting documentation, must be received by Cigna on or before June 30 of the year following the Calendar Year in which your status changed. (This means that claims that are postmarked by June 30, but are not received by Cigna until after June 30, will be denied.) You may fax your claims to Cigna on or before June 30 to expedite their receipt. Instead of submitting a paper form, you also have the option to submit your claim and request reimbursement online. You can arrange for your reimbursement to be direct deposited into your checking or savings account. Visit the Cigna website at www.mycigna.com for details.

Suppose your employment ends on September 1, 2013, and the end of the pay period is September 22, 2013. Then, all claims and supporting documentation must be received by Cigna on or before June 30, 2014, for eligible health care expenses (dental and vision expenses only under the Limited Purpose HCRA) incurred from January 1, 2013, or the date your participation took effect, if later, through September 22, 2013, and eligible dependent care expenses incurred from January 1, 2013, or the date your participation took effect, if later, through September 22, 2013. In certain circumstances, you may be able to continue participation in your HCRA or Limited Purpose HCRA through COBRA on an After-Tax basis. (See “Continuing Coverage” beginning below for more information.) You must elect continuation coverage for your HCRA or Limited Purpose HCRA in order to submit claims for reimbursement of eligible health care expenses (dental and vision expenses only for the Limited Purpose HCRA) incurred after the end of the pay period during which your last day of paid employment with Prudential occurred.

3 The Dependent Care Reimbursement Account is not available to Agency Distribution Financial

Professional Associates or Agency Distribution Financial Professionals. Please note: Prudential Representatives are eligible for this Program.

http://www.mycigna.com/


Continuing Coverage Health Care Reimbursement Account and Limited Purpose HCRA You may arrange to make After-Tax contributions to your HCRA or Limited Purpose HCRA for the remainder of the Calendar Year in which your employment with Prudential and its Affiliates ends.

To continue participation in the HCRA or the Limited Purpose HCRA on an After-Tax basis through the end of the Calendar Year in which your employment ends, you must elect COBRA continuation coverage. Through COBRA, you are provided with certain rights regarding the Prudential HCRA and the Limited Purpose HCRA. Your COBRA Election Package will contain detailed information regarding these rights. If you continue participation in the HCRA or the Limited Purpose HCRA through the end of the Calendar Year in which your employment ends, you may request reimbursement from your HCRA or Limited Purpose HCRA for eligible health care expenses (dental and vision expenses only for the Limited Purpose HCRA) incurred from January 1, or the date participation took effect, if later, through March 15 of the following year. Requests for reimbursement of eligible expenses for the current Claims Period, including supporting documentation, must be received by Cigna on or before June 30 of the year following the Calendar Year in which your employment ends. (This means that claims that are postmarked by June 30, but are not received by Cigna until after June 30, will be denied.) You may fax your claims and supporting documentation to Cigna on or before June 30 to expedite their receipt.

If you stop contributing to your HCRA or Limited Purpose HCRA before the end of the Calendar Year in which your employment ends, any health care expenses (dental and vision expenses only for the Limited Purpose HCRA) incurred after your last contribution will not be eligible for reimbursement, and any amounts remaining in your account will be forfeited unless Cigna receives your claim for reimbursement, including supporting documentation, on or before June 30 of the year following the Calendar Year in which your employment ends.

If you wish to continue After-Tax contributions through COBRA for the HCRA or the Limited Purpose HCRA for the remainder of the Calendar Year in which your employment ends, you will need to make your election by the date indicated in your COBRA Election Package, which will be automatically mailed to your home a few weeks after your active coverage ends. If you do not receive your COBRA Election Package within a few weeks after your employment ends, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA.

Dependent Care Reimbursement Account4

You may not make additional contributions after your employment with Prudential and its Affiliates ends. You may continue to incur eligible dependent care expenses through the end of the pay period in which your employment ends to apply against any balance remaining in your DCRA4.

Please note: Under the terms of the Prudential Flexible Benefits Plan, DCRA4 expenses are eligible only if the dependent care provided allows you to work or seek employment.

Requests for reimbursement of eligible expenses for the current Calendar Year’s Claims Period, including supporting documentation, must be received by Cigna on or before June 30 of the year following the Calendar Year in which your employment ends. (This means that claims that are postmarked by June 30, but are not received by Cigna until after June 30, will be denied.) You may fax your claims and supporting documentation to Cigna on or before June 30 to expedite their receipt. Instead of submitting a paper form, you also have the option to submit your claim and request reimbursement online. You can arrange for your reimbursement to be direct deposited into your checking or savings account. Visit the Cigna website at www.mycigna.com for details.

4 The Dependent Care Reimbursement Account is not available to Agency Distribution Financial

Professional Associates or Agency Distribution Financial Professionals. Please note: Prudential Representatives are eligible for this Program.


Group Legal Program5 When Coverage Ends Generally, coverage ends at the end of the pay period in which your employment with Prudential and its Affiliates ends.

Extension of Benefits When your coverage ends, coverage under the Group Legal Program5 will be extended to cover any legal services started by you or one of your Qualified Dependents before your coverage ended, provided an attorney has been retained.

If you wish to continue coverage for legal services already in progress, call Hyatt Legal Plans at 1-800-821-6400 between 8 a.m. and 6 p.m., Eastern time, Monday through Friday, or visit the Hyatt Legal Plans website (at www.legalplans.com).

5 The Group Legal Program is not available to Agency Distribution Financial Professional

Associates or Agency Distribution Financial Professionals. Please note: Prudential Representatives are eligible for this Program.


Wellness Programs Employee Assistance Program, Health Coaching Program and Best Doctors Program When Coverage Ends Coverage ends at the end of the pay period during which your employment with Prudential and its Affiliates ends.

Continuing Coverage Because your loss of coverage is due to the end of your employment with Prudential and its Affiliates, you and/or your Spouse and/or your Dependent Child(ren) may elect to continue coverage for up to 18 months (the number of months is reduced if you become entitled to Medicare while covered under COBRA) under terms provided by COBRA or through COBRA-like coverage for Qualified Adults.

You and/or your eligible dependents have 60 days from the date of the notice of the right to continue coverage or 60 days from the date your coverage ceases, whichever is later, to elect this continuation coverage. The information to elect this coverage will be included in the COBRA Election Package, which will be automatically mailed to your home within a few weeks after your employment ends. If you do not receive your COBRA Election Package within a few weeks, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA. If you choose to continue coverage through COBRA, you are not required to make contributions for this coverage; however, you are required to make a COBRA election. Please note: If you choose to continue coverage, you must make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center by the date indicated on your COBRA Election Form.

Clinic Program When Coverage Ends Coverage ends at the end of the pay period during which your employment with Prudential and its Affiliates ends.

Continuing Coverage Because your loss of coverage is due to the end of your employment with Prudential and its Affiliates, you may elect to continue coverage for up to 18 months (the number of months is reduced if you become entitled to Medicare while covered under COBRA) under terms provided by COBRA.

You have 60 days from the date of the notice of the right to continue coverage or 60 days from the date your coverage ceases, whichever is later, to elect this continuation coverage. The information to elect this coverage will be included in the COBRA Election Package, which will be automatically mailed to your home within a few weeks after your employment ends. If you do not receive your COBRA Election Package within a few weeks, please call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits and then COBRA. If you choose to continue coverage through COBRA, you are not required to make contributions for this coverage; however, you are required to make a COBRA election. Please note: If you choose to continue coverage, you must make your COBRA election on the Prudential Benefits Center website or by calling the Prudential Benefits Center by the date indicated on your COBRA Election Form.


Contact Information For general benefits questions, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits or visit the Prudential Benefits Center website (at www.prubenefitscenter.com).

Benefits Program/Plan Contact

Medical For benefits, claims and providers, call your medical carrier at the number listed on your identification card. For information about continuing your active medical coverage through COBRA, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA. For information about continuing your Health Savings Account (HSA) through JPMorgan Chase, contact JPMorgan Chase by visiting the JPMorgan Chase website at www.chase.com/hsa or by calling JPMorgan Chase at 1-866-524-2483.

Dental For benefits, claims and providers, call your dental carrier at the number listed on your identification card. For information about continuing your active dental coverage through COBRA, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

Vision For benefits and provider locations, call Davis Vision at 1-888-PRU-2869 (1-888-778-2869), or visit the Davis Vision website at www.davisvision.com to log in to your personalized account. For mail-order contact lens replacements, call 1-800-LENS-123 (1-800-536-7123).

For information about continuing your active vision coverage through COBRA, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

Basic Group Life For information about converting to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday.

Basic Accidental Death & Dismemberment

Not applicable

Business Travel Accident Not applicable

Group Universal Life For information regarding your right to continue your coverage through the portability feature, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

For information regarding your right to convert to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday. To review and/or update (if necessary) your Beneficiary designation, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits.

Supplemental Accidental Death & Dismemberment

Not applicable

Dependent Term Life For information regarding your right to continue your coverage through the portability feature, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Health and Welfare benefits. For information regarding your right to convert to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday.


Benefits Program/Plan Contact

Survivor Benefits Life Insurance

For more information regarding your right to convert to an individual policy, call your local Prudential agent or the Prudential Group Life Conversion Unit at 1-800-435-5171 between 9 a.m. and 5 p.m., Eastern time, Monday through Friday.

Short Term Disability Not applicable

Long Term Disability For more information regarding your right to convert lost coverage, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Disability.

Optional Long Term Disability For more information regarding your right to convert lost coverage, call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Disability.

Long Term Care For information about continuing coverage, call the Long Term Care Customer Service Center at 1-866-439-8631 between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

Flexible Spending Accounts

To continue After-Tax contributions for Health Care Reimbursement Account (HCRA) or Limited Purpose HCRA coverage for the remainder of the Calendar Year, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

For questions about benefits or claims, call Cigna member services at 1-888-502-4462 or visit the Cigna custom website for Prudential (at www.cigna.com/prudential).

Group Legal Program For information about Group Legal Program benefits, call Hyatt Legal Plans at 1-800-821-6400, or visit the Hyatt Legal Plans website (at www.legalplans.com).

Employee Assistance Program

For information about Employee Assistance Program benefits, call FEI Behavioral Health at 1-800-433-8960. For information about continuing your Employee Assistance Program coverage, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

Clinic Program For information about Clinic Program benefits, visit your on-site Health and Wellness clinic. For information about continuing your Clinic Program coverage, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

Health Coaching Program For information about Health Coaching Program benefits, call the Health Coaching Program at 1-877-584-3101. For information about continuing your Health Coaching Program coverage, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

Best Doctors Program For information about Best Doctors Program benefits, call the Best Doctors Program at 1-866-904-0910.

For information about continuing your Best Doctors Program coverage, contact the Prudential Benefits Center by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Health and Welfare benefits and then COBRA.

Medicare For information about Medicare benefits and to enroll in Medicare, visit the Social Security Administration website (at www.ssa.gov). You may also call the Social Security Administration at 1-800-772-1213.


Section II - Capital Accumulation Plans


Introduction The information on the following pages is intended to highlight certain information about how your benefits under the Prudential Capital Accumulation plans are affected when your employment with Prudential and its Affiliates ends. This information does not replace or supersede any information that can be found in the Summary Plan Description (SPD) booklet, including any subsequent related Summaries of Material Modifications (SMMs) of the SPD booklet or the Plan Document for each plan. Terms whose first letters are capitalized appear in the Glossary of each applicable SPD booklet, including any subsequent related SMMs of the SPD booklet.

Once you have reviewed this information, if you still have questions regarding your Prudential Employee Savings Plan (PESP), Prudential Supplemental Employee Savings Plan (SESP), Prudential Merged Retirement Plan (the Retirement Plan) or Prudential Supplemental Retirement Plan (the Supplemental Retirement Plan) benefit, please review the applicable SPD booklet, including any subsequent related SMMs of the SPD booklet, or call 1-800-PRU-EASY (1-800-778-3279), follow the prompts as indicated below and follow the instructions to speak to a representative. Representatives are available Monday through Friday, except on holidays, during the hours listed below.

How to Access Information About Your Capital Accumulation Plans

For the: Follow the prompts for Retirement: And call during the following hours (Eastern time):

PESP* Employee Savings Plan or 401(k) 8 a.m. to 9 p.m.

SESP* Employee Savings Plan or 401(k) 8 a.m. to 9 p.m.

Retirement Plan Pension 8 a.m. to 6 p.m.

Supplemental Retirement Plan Pension 8 a.m. to 6 p.m.

* You can use the direct Interactive Voice Response (IVR) system to obtain PESP and SESP information at 1-800-PRU-PESP. When prompted, enter your Social Security number and press the pound key (#). Then, enter your PESP/Prudential Personal Identification Number (PIN) and press “#” again. You will be provided with your total account balance. If you are hearing-impaired and have a teletype (TTY) line, please call 1-877-760-5166, Monday through Friday, except on holidays, between 8 a.m. and 6 p.m., Eastern time.

PESP and SESP In addition, you will continue to have online access to your PESP and SESP account information via the Internet (at www.prudential.com/pesp). Simply choose whichever method is most convenient for you and follow the instructions below.

• Via the Internet (at www.prudential.com/pesp):

Enter your User ID and password in the spaces provided, then click “LOG IN.” If you are signing on for the first time, click “Register Now” and follow the instructions to establish your User ID and password.

• Via the Interactive Voice Response (IVR) system:

Dial 1-800-PRU-PESP (1-800-778-7377);

When prompted, enter your Social Security number and press the pound key (#); and

When prompted, enter your PESP/Prudential PIN and press #. You will be provided with your total account balance.


PESP Terms and Conditions IMPORTANT: When you use the PESP online or IVR systems, you are agreeing to use them under the terms and conditions prescribed by the Company. These terms and conditions are maintained on the PESP website for easy reference. Or, to obtain a copy, call Prudential Retirement at 1-800-PRU-PESP (1-800-778-7377).

Retirement Plan and Supplemental Retirement Plan In addition, you will continue to have online access to your Retirement Plan information through the Prudential Benefits Center website via the Internet (at www.prubenefitscenter.com). Or, you may call the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279) and follow the prompts for Pension, and follow the instructions to speak to a Prudential Benefits Center Representative.


Prudential Employee Savings Plan The Prudential Employee Savings Plan (PESP) section of this document constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933.

What Happens to Your PESP Account When Your Employment Ends If your Vested account is more than $5,000 when your employment with Prudential and its Affiliates ends, you may leave your Vested account in PESP or receive a full or partial distribution of your Vested account. You will continue to receive quarterly PESP account statements as long as you have a balance in PESP.

Specifically, you may:

• Elect to defer receiving a distribution until a later date—typically as late as age 70½. (See “Distributions After You Reach Age 70½” in your PESP SPD booklet.) If your Vested account balance does not exceed $5,000, you may not have a right to defer payment.

If you defer receiving a distribution, the Plan investment options available to you thereafter (including related fees) generally will be the same as those available to active Employees. However, certain plan features, such as the right to repay or take a loan from the Plan, will generally not be available if you have terminated employment. Please refer to the “Receiving Distributions from PESP” and “Investing Your PESP Account” sections of your PESP SPD booklet as well as fund fact sheets for more information about Plan investment options, investment related expenses, any Plan restrictions or payment options, and any other special rules that may impact your distribution decision.

For additional information about Plan investment options (and related fees), Plan restrictions or if you have other questions regarding your right to defer a distribution or the consequences of not deferring a distribution, please call 1-800-PRU-PESP (1-800-778-7377);

• Generally, change the investment of your accounts that remain in PESP, up to once a day. Prudential reserves the right to limit the percentage of assets that you may invest in the Prudential Financial, Inc. (PFI) Common Stock Fund. In order to comply with applicable law or Prudential policies, specific transactions, including, but not limited to, those in the PFI Common Stock Fund, may be limited for certain individuals;

• Generally, elect to receive a distribution of your entire Vested account balance at one time;

• Roll over your Vested account balance in cash and/or PFI Common Stock (if you meet certain requirements) to an IRA or another Tax-Qualified Plan;

• Elect to receive partial distributions, subject to certain restrictions, from your Vested account balance that will follow the hierarchy of distribution. (Refer to the “Partial Distributions” and “Order of Distribution from Your Account” sections of the PESP SPD booklet for more information);

• Elect to receive any Annuity form that is available under the Plan (minimum purchase amount of $5,000);

• Avoid default on any loan in your PESP account by paying it back by the earlier of the 60th day following the date your employment ends or the 60th day following your failure to make payments on the loan through payroll deduction or otherwise. Note that the balance of an outstanding loan becomes due and payable when your employment ends;

• Continue to submit elections, during authorized election periods, concerning how you want to handle the dividends paid on your Vested account balance in the PFI Common Stock Fund of the Employee Stock Ownership Plan (ESOP) portion of PESP, until you receive a total distribution of your Vested PESP account. You can receive these dividends in cash, payable to you, or in additional


units in the PFI Common Stock Fund that will remain in the ESOP portion of your Vested PESP account;

• Change or update your Beneficiary election at any time. While your Vested PESP account remains in the Plan, it is advisable that you keep your Beneficiary elections and information as current as possible. See “What Happens Upon Your Death” on page 33 for more information;

• Update your address at any time. Please call 1-800-PRU-PESP (1-800-778-7377); and

• Request a statement of your Vested PESP account at any time.

Generally, you will continue to have the ability to review your PESP account 24 hours a day, 7 days a week, so that you can check your Vested account balance, request a statement at any time, transfer funds and perform certain transactions.

Please note: If your separation from employment with Prudential is covered by the Worker Adjustment and Retraining Notification Act (the “WARN Act”), Prudential will provide you with a notice that the WARN Act applies. If the WARN Act applies to your separation from employment, you may continue to make contributions to PESP until your separation date as indicated in the notice, even if you are not expected to return to work following your leave.

You are not permitted to:

• Earn additional vesting credit in the Company Matching Contributions portion of your PESP account and any related investment results; however, you become 100% Vested in Company Matching Contributions and any related investment results after three years of Vesting Service with Prudential and its Affiliates (or if you reach age 65 while still employed by Prudential). Additionally, you are always 100% vested in your contributions and any related investment results;

• Make additional contributions to your PESP account;

• Receive additional Company Matching Contributions to your PESP account;

• Take hardship withdrawals;

• Take or continue loans against your Vested account balance, in most cases, except in certain circumstances. For more information, call 1-800-PRU-PESP (1-800-778-7377); or

• Leave your money in your PESP account if your Vested account balance is $5,000 or less. Note, however, that you may be able to roll over certain distributions from the Retirement Plan to raise your account balance above this level.

Generally, any non-vested Company Matching Contributions and any related investment results will be forfeited if you are not re-employed by Prudential or one of its Affiliates within five years from the date your employment with Prudential and its Affiliates ends.

How Your Vested Account Balance Can Be Paid If your Vested PESP account balance is greater than $1,000, but is not more than $5,000, your Vested account balance will be rolled over to an Individual Retirement Account (IRA) and/or a Roth IRA (if applicable) designated by the Plan, unless you elect to:

• Receive the entire portion of your account invested in the PFI Common Stock Fund in the form of shares of PFI Common Stock. You will retain ownership of your shares through an account at ComputerShare. Any fractional shares will be distributed in cash equivalents.

If you elect to receive a distribution that you roll over to another eligible retirement plan such as a traditional IRA or a Roth IRA, the investment options offered under PESP (for example, mutual funds, employer stock) may not be available to you or, if available, are likely to carry higher expenses if transferred to an IRA. If you elect to receive a distribution but do not roll it over to


another eligible retirement plan, such action triggers taxation (possibly including a 10% Federal early distribution tax), results in loss of future tax-deferred earnings (if any) and may diminish the funds available to you for retirement purposes;

• Have your account paid to you in cash; or

• Have your account rolled over to an IRA and/or Roth IRA (if applicable) or another Tax-Qualified Plan.

If your Vested account balance is rolled over to an IRA and/or Roth IRA (if applicable) designated by the Plan, you will receive a written explanation describing the Plan’s automatic rollover procedures, the nature of the investment product in which your distribution will be invested and how the fees and expenses will be allocated.

However, if you are age 65 or older at the time your distribution is made, and you do not make a timely distribution election, your account will not be rolled over automatically to an IRA; instead, your account will be distributed to you in a lump sum cash payment.

If your Vested PESP account balance is $1,000 or less, and you do not elect another form of payment and you do not elect to roll it over to another qualified plan, it will be automatically distributed in a lump sum cash payment.

If your Vested account balance exceeds $5,000 (or such higher amounts as may be permitted under applicable law), in general, you may elect to:

• Defer the distribution of all or a portion of your Vested PESP account balance until no later than April 1 of the Calendar Year following the later of:

The Calendar Year in which you reach age 70½; or

The Calendar Year in which your employment with Prudential and its Affiliates ends.

For more information on the rules governing Minimum Required Distributions (MRDs) after you reach age 70½, please refer to the “Distributions After You Reach Age 70½” section of the PESP SPD booklet.

• Receive your Vested PESP account in one or more of the ways described beginning below:

Single Sum: You may elect to have all or a portion of your Vested PESP account balance distributed directly to you in a single sum payment or directly rolled over in cash and/or, if available, PFI Common Stock to a traditional IRA (excluding a SIMPLE IRA, a Coverdell Education Savings Account—formerly known as an Education IRA), a Roth IRA or another Tax-Qualified Plan (including a governmental 457(b) plan) that agrees to separately account for such amounts. Please note the following:

− Your Roth 401(k) Contributions can be directly rolled over to a Roth IRA or another employer’s Tax-Qualified Plan that accepts Roth 401(k) rollovers and provides separate accounting for Roth 401(k) rollover amounts. Please note: There are rules for Qualified Distributions from Roth Accounts. You are encouraged to consult with your tax advisor or financial planning professional to understand the details of a Qualified Distribution from Roth Accounts;

− You can have your After-Tax contributions directly rolled over from your PESP account to another employer plan, annuity plan and/or tax-sheltered annuity using a direct rollover if the other plan or annuity provides separate accounting for amounts rolled over, including separate accounting for the earnings on the After-Tax amounts. You cannot roll over After-Tax contributions to a governmental 457 plan; and


− You may be able to transfer or roll over all or part of your Prudential IncomeFlex guarantees to a Prudential Annuity contract that can be part of a Prudential rollover IRA. The Prudential Retirement Security Annuity is subject to regulatory approval in the state or territory where you live, and may have restrictions, substantially different fees and different provisions affecting the guarantees. Refer to the “Additional Information About Prudential IncomeFlex SelectSM” section of the PESP SPD booklet for more information.

If you choose not to receive a distribution of your entire Vested PESP account balance, you may take up to five partial distributions per Calendar Year (subject to a minimum amount of $300 each and to certain other PESP rules regarding the order in which the type of contributions and related investment results may be withdrawn);

Purchase an Annuity: You may elect to apply all or a portion of your Vested PESP account balance towards the purchase of an Annuity, subject to a minimum purchase amount of $5,000. Refer to the “Choosing an Annuity” section of the PESP SPD booklet for more information;

IncomeFlex Lifetime Withdrawals: If you are age 55 or older, IncomeFlex allows you to lock in a certain level of income that will be available for you to withdraw as retirement income every year for life. For more information about your IncomeFlex options, please refer to the “Additional Information About Prudential IncomeFlex SelectSM” section of the PESP SPD booklet; and

Combination of PESP Distribution Options: You may choose to receive payments under any combination of the above distribution options.

Distributions are generally paid entirely as cash equivalents (that is, by check or electronic funds transfer [EFT]). However, if your employment with Prudential and its Affiliates ends, if you elect a lump-sum distribution of a portion or all of your Vested account balance, and if a portion of your Vested account balance is invested in the PFI Common Stock Fund, you may choose to receive the value of your PFI Common Stock Fund (both the ESOP and the non-ESOP portions together) entirely in PFI Common Stock. If you choose this option, you will retain ownership of your shares through an account at ComputerShare (fractional shares will be distributed in cash). The remaining account balance will be distributed in cash equivalents. Generally, you may not receive a distribution in the form of PFI Common Stock if you elect an Annuity form of payment. If you elect to receive PFI Common Stock, you will not receive share certificates. Instead, your shares will be transferred to ComputerShare and you will incur fees to sell or transfer those shares.

Generally, the method of payment you elect from the distribution options described above is irrevocable.

For more information on these distribution options, please refer to the “Receiving Distributions from PESP” section of the PESP SPD booklet.

Tax Implications The Internal Revenue Code has rules on the taxation of distributions from PESP. The tax treatment of your distribution may vary depending on how you receive your Vested PESP account balance. In addition, taxes on a PESP distribution can be complex; you may want to determine the most tax-favorable payment methods for you before you receive a distribution. For information on the tax treatment of your PESP distributions, eligible rollover distributions, and employer stock distributions, please refer to the “Tax Treatment of Distributions” section of the PESP SPD booklet.

When you receive a distribution from your PESP account, the appropriate Federal, state and local income taxes generally will be withheld from the taxable portion of your distribution. You may receive a separate check for the non-taxable portion of your distribution, if any.

These distributions will be reported to you and to the Internal Revenue Service (IRS) on IRS Form 1099R, which will be mailed to you by the end of January of the Calendar Year following the Calendar Year in which the distribution is made.


IMPORTANT: The rules governing the income tax consequences of distributions from plans like PESP are complex. This section and the “Tax Treatment of Distributions” section of the PESP SPD booklet are intended only to highlight some general tax information. Additional information can be found in the “Special Tax Notice Regarding Plan Payments,” available on the PESP website (at www.prudential.com/pesp). You can also obtain a copy by calling 1-800-PRU-PESP (1-800-778-7377) and following the prompts to speak to a Customer Service Representative.


Requesting a Distribution To request a distribution of your account, visit the website at www.prudential.com/pesp or call the IVR system at 1-800-PRU-PESP (1-800-778-7377).

ESOP Cash Dividend Election and Dividend Distributions If you decide to delay receipt of all or a portion of your Vested PESP account and if you have previously elected to have the dividends paid on your Vested account balance in the PFI Common Stock Fund of the Employee Stock Ownership Plan (ESOP) portion of PESP paid to you as cash, you will continue to receive these cash payments until you change your election during an authorized ESOP election period. Any ESOP dividends that you elect to have paid to you will be reported to the IRS as dividend income and will be summarized for you each year on IRS Form 1099-DIV.

For more information, please refer to the “ESOP Cash Dividend Election and Dividend Distributions” section of the PESP SPD booklet.

Outstanding Loans The balance of an outstanding loan becomes due and payable when your employment ends. Generally, to avoid default and, therefore, to avoid having your loan be treated as a deemed distribution, you must repay any outstanding loan balance in full by the earlier of the 60th day following the date your employment ends or the 60th day following your failure to make payments on the loan through payroll deduction or otherwise. If payment is not received within the applicable 60-day period, the outstanding balance of your loan will be treated as a taxable distribution. Shortly after the end of the Calendar Year of the deemed distribution, you will receive a Form 1099R, which will also be reported to the IRS, indicating your receipt of this deemed distribution. For more information about loans, see the “Loans” section of the PESP SPD booklet.

Please note that special rules may apply to loans issued under other Tax-Qualified Plans in which you may have participated before those plans were merged into PESP. If you have questions regarding an outstanding loan granted under a Tax-Qualified Plan in which you participated before it was merged into PESP, please call 1-800-PRU-PESP (1-800-778-7377).

To pay off your loan, you will need to determine and lock in the amount of the repayment. To do so, call Prudential Retirement at 1-800-PRU-PESP (1-800-778-7377), or go to the PESP website (at www.prudential.com/pesp), select “Loans” from the menu on the left side and then “Pay Off Loan.” The payment must be made by certified check, cashier’s check or money order in the prescribed time and should be sent to: Prudential Retirement, Attn: PESP Team, 30 Scranton Office Park, Scranton, PA 18507-1789.

What Happens Upon Your Death If you purchase an Annuity with all or a portion of your Vested PESP account, any survivor payments with respect to that Annuity will be distributed in accordance with the terms of the Annuity form of payment in effect at your death.


If you elected the IncomeFlex spousal benefit, your Spouse will receive 100% of your IncomeFlex annual lifetime withdrawal amount for the rest of his/her lifetime if your Spouse should outlive you.

Any remaining Vested PESP account balance not used to purchase an Annuity or not locked in to pay an IncomeFlex spousal benefit and not previously distributed will be payable to your surviving designated Beneficiary(ies) under PESP. If you are married at the time of your death, your surviving Spouse is automatically your PESP Beneficiary, unless you designated a different PESP Beneficiary and your Spouse provided written, notarized consent to that Beneficiary designation. If you are not married upon your death and have no surviving designated Beneficiary(ies), your remaining Vested PESP account balance will be paid to your estate.

In general, your Beneficiary(ies) may elect any available form of distribution under PESP (see “How Your Vested Account Balance Can Be Paid” beginning on page 30 for more information about distribution options). In addition, subject to the rules under the Internal Revenue Code for a Minimum Required Distribution, your Beneficiary can elect to leave the Vested account in PESP for a period of time, provided the Vested account balance remains more than $5,000 (or such higher amount as may be permitted under applicable law).

Once the Plan Administrator is informed of your death, your Beneficiary(ies) should receive information regarding any benefits payable.

For more information on PESP distribution rules that will apply to your surviving Beneficiary(ies), please refer to the “Survivor Benefits” section of the PESP SPD booklet.

Requesting a PESP Beneficiary Designation Form To request a PESP Beneficiary Designation Form, visit www.prudential.com/pesp or call the IVR system at 1-800-PRU-PESP (1-800-778-7377).

Section 16 Officers Section 16 of the Securities Exchange Act of 1934 requires that transactions of Insiders (that is, directors, certain officers and ten percent owners of the issuer) in equity securities of Prudential Financial, Inc. be reported to the Securities and Exchange Commission no later than two business days after the transaction has been executed, and allows for the recovery by Prudential Financial, Inc. of short swing profits by these Insiders (that is, any profit gained from buying and selling or selling and buying Prudential Financial, Inc. securities in less than a six-month period). A Section 16 Officer, for the purposes of the rule, is defined as President, Principal Financial Officer, Principal Accounting Officer or Controller, any Vice President in charge of a principal business unit, division or function, and any other executive officer who performs similar policy-making functions. This includes transactions whether acquired through a Prudential-sponsored plan or program or independently on the open market.

Section 16 Officers may be subject to certain restrictions in connection with purchases and sales of Prudential Financial, Inc. securities. More information about these restrictions is available by contacting Corporate Compliance or by reviewing Prudential’s Personal Securities Trading Policy.


Prudential Supplemental Employee Savings Plan When Contributions End You are not permitted to make additional contributions to your Prudential Supplemental Employee Savings Plan (SESP) following the date your employment with Prudential and its Affiliates ends.

What Happens to Your SESP Account Once Your Employment Ends The timing of your distribution depends on your employee classification on January 1, 2008 (or your date of hire, if later), and on the date your Employment with Prudential and its Affiliates ends.

When a distribution is made, your funds will be paid to you in a single sum taxable payment. Because SESP is a non-qualified plan, your distribution cannot be rolled over to an Individual Retirement Account/Annuity (IRA) or another employer’s Tax-Qualified Plan.

If you were an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later), your funds will be paid to you when you turn age 65. If you separate from service before you turn age 65, your account will continue to grow with interest credits until the distribution is made.

If you were in active service when you attained age 65, your account was distributed to you at that time and additional accruals were distributed each January 1. You will receive a final distribution on January 1 of the year following the year your Employment with Prudential and its Affiliates for any additional accruals in your final year of Employment with Prudential and its Affiliates.

If you were any other type of Employee on January 1, 2008 (or your date of hire, if later):

• If you were not an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later) and are not an Agency Distribution Financial Professional when your Employment at Prudential and its Affiliates ends, you usually will receive your payment six months following your last day of Employment at Prudential and its Affiliates6.

• If you were not an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later), but are an Agency Distribution Financial Professional when your Employment at Prudential and its Affiliates ends, you usually will receive your payment at the earlier of the following6: 1) age 65, and 2) the date you are both at least age 55 and your age and your service (when your Employment with Prudential and its Affiliates ended) added together equals 70. In any event, however, you will not receive your payment until at least six months following your last day of Employment at Prudential and its Affiliates.

When you receive a distribution, the appropriate federal, state, local and foreign income taxes will be withheld, and your distribution will be reported to you and the IRS on IRS Form W-2 as wages. These forms will be mailed to you by the end of January of the Calendar Year following the Calendar Year in which the distribution is made.


6 If you are performing services as an independent contractor (including under an emeritus

contract) between the date your Employment with Prudential and its Affiliates ends and the date your benefit is expected to be paid to you, payment of your Supplemental Employee Savings Plan benefit may be further delayed based on the circumstances of your relationship with the Company as an independent contractor.


To find out how to review your account online, use the IVR system or speak to a Customer Service Representative, see “How to Access Information About Your Capital Accumulation Plans” beginning on page 27.


Retirement Plan The Retirement Plan is a “qualified” plan that is subject to certain limits imposed by the Internal Revenue Code and Regulations (the “Code”).

The Retirement Plan currently has three components:

• Component One: the Prudential Traditional Retirement Plan Document (which will be referred to as the Traditional Pension Formula);

• Component Two: the Prudential Securities Incorporated Cash Balance Pension Plan Document (which will be referred to as the PSI Plan); and

• Component Three: the Prudential Cash Balance Pension Plan Document (which will be referred to as the Cash Balance Formula).

The Prudential Supplemental Retirement Plan (the Supplemental Retirement Plan) is a “non-qualified” plan that provides benefits to eligible Employees whose benefits under Components One and Three of the Retirement Plan are limited by the Code. The Supplemental Retirement Plan covers both the Cash Balance Formula and the Traditional Pension Formula.

If your Retirement Plan benefit has been limited, you are eligible to receive the portion of your benefit that exceeds these Code limits through the Supplemental Retirement Plan.

The information that appears in this section of the booklet covers Components One and Three of the Retirement Plan and the corresponding benefit under the Prudential Supplemental Retirement Plan. These two components, together and under both plans, are referred to as the “Retirement Plan” throughout this booklet.

When and how any Vested Retirement Plan benefit is payable to you depends on whether your benefit was determined under the:

• Cash Balance Formula;

• Traditional Pension Formula; or

• Both the Cash Balance Formula and the Traditional Pension Formula.

Accessing Retirement Plan Information Through the Prudential Benefits Center Website You can access information about the Retirement Plan through the Prudential Benefits Center website 24 hours a day, 7 days a week via the Internet (at www.prubenefitscenter.com).

How to Log In and View Retirement Plan Information Follow these steps to view information about the Retirement Plan:

• Access the Prudential Benefits Center website via the Internet (at www.prubenefitscenter.com):

Click “Begin”;

On the Log In page, enter your User ID and Password in the spaces provided; and

Read all of the information contained on this Log In page, then click “Enter” to reach the Welcome Page for the Prudential Benefits Center website;

• Open the “Retirement Planning” drop-down list to access information about the Retirement Plan, then click any of the following links:

“Projected Income” link allows you to project your estimated pension benefit (see “Using the Prudential Benefits Center Website to Plan for Your Retirement” beginning on page 38);


“Retirement Process” link allows you to begin the retirement and/or commencement process online;

“Summary Plan Description” link, which provides your Retirement Plan SPD booklet as well as other benefits documents;

“Forms and Materials” link, which provides you with access to forms and materials related to your Retirement Plan benefit;

“Recent Requests” link, which allows you to review requests that you recently submitted on the Prudential Benefits Center website;

“Beneficiaries” link where you can view and/or change your Beneficiary;

“Review Account” link, which provides you with your Cash Balance Account balance as of a current date. If you have more than one Cash Balance Account, a drop-down menu will appear on this page under the “Plan” heading. You will need to select each one and click “Redisplay.” If you want to see your Cash Balance Account balance as of a prior date, you will need to enter the prior date and click “Redisplay”;

“Key Dates” link, which outlines your potential retirement dates, including your earliest retirement date, earliest unreduced date, normal retirement date and earliest commencement dates under both the Traditional Pension and Cash Balance Formulas; and

“Future Payments” link, which will indicate if you are currently receiving any benefits. For most active Employees, this link will not appear since there are no future payments on file for you.

Using the Prudential Benefits Center Website to Plan for Your Retirement You can project your pension benefit on the Prudential Benefits Center website. The Pension Modeling Tool allows you to modify assumptions, such as your last day of employment, potential earnings, interest rates and Spouse or Contingent Annuitant information, to project your potential pension benefit. To use the Pension Modeling Tool:

• Open the “Retirement Planning” drop-down list and then click the “Projected Income” link to access the tool;

• Once on the Projected Income page, you can enter assumptions to run your pension benefit projection. To view a description of most of the assumptions, move your cursor over the assumption and read a description of the assumption and any parameters you need to keep in mind when entering your own assumptions. For some entries, you also have a drop-down menu that provides you with your range of choices and for others, you need to click on the field to see the description.

The following tips may help you complete the entries needed to make your projection:

Last Day of Employment: If you are eligible to retire at age 55 and would like to project your potential pension benefit to begin at age 55, use the specific date fields and enter the last day of the month in which you turn age 55. If your birthday is the first day of the month, enter the last day of the previous month. For example, if your birthday is February 9, 1960, enter 2/28/2015. If your birthday is February 1, 1960, enter 1/31/2015.

Please note that if you have pension benefits determined under the Traditional Pension Formula or you chose the Cash Balance Formula during the Pension Choice Election Process in 2001, you must enter a date that is no earlier than the Last Day of Employment described above for retirement age 55 in order to be considered Retirement-Eligible (see the Retirement Plan SPD booklet for the definition of “Retirement-Eligible”). Also note, if you enter “age 55,” the calculation will assume your last day of employment is on your 55th birthday, which for most individuals means that you will not be considered Retirement-Eligible;


Date You Begin Receiving Benefits: If you have a pension benefit under more than one formula or plan, you may need to enter different commencement dates to see an estimate for each;

Current Year Eligible Earnings Amount and Next Year Eligible Earnings Amount:

− The Current Year Eligible Earnings Amount and the Next Year Eligible Earnings Amount fields will default to your last Calendar Year’s Eligible earnings amount;

− If you are entering a Last Day of Employment that is in the Current Year or Next Year, you will need to enter the amount of Eligible Earnings you expect to receive by the Last Day of Employment entered;

− The Pension Modeling Tool WILL NOT prorate the earnings amount displayed or entered in the Current Year or Next Year (but it will prorate for following years, if applicable). This means that if you do not prorate or change your earnings to reflect your Last Day of Employment, you will not receive an accurate estimate.

For example, if your annual earnings are expected to be $80,000 and you are estimating a retirement date of July 1 in the current year, you will need to modify your Current Year Eligible Earnings Amount to something closer to $40,000 to reflect that you will work for half of the year;

• After you have modified all applicable assumptions, click the “Project Pension Benefit” button to obtain your estimates;

If you have a benefit under more than one pension benefit formula, you should select the drop-down menu in the “Your Benefit” field, select whether you want to view your payments as monthly or annual amounts and then select the “Redisplay” button. You will need to complete this same process for each of the formulas under which you have a benefit; and

Other forms of payment may be available that are not displayed in the calculation results provided. If you would like an estimate for a form of payment not displayed, please contact the Prudential Benefits Center at 1-800-PRU-EASY (1-800-778-3279); and

• To save your calculation to review it at a future date, enter a description of the calculation in the box provided at the bottom of the page, then click “Save.” To view your saved calculations, click “View Your Saved Projections.”

Please note: The pension estimates provided by the Pension Modeling Tool are non-binding and are not a guarantee of your actual pension benefit. Your actual pension benefit may differ from the estimate and can only be determined after you make your election, after final data is verified and after all necessary pension calculations are completed.

How to Name a Beneficiary You may use the Prudential Benefits Center website to add a Beneficiary.

• On the Prudential Benefits Center website (at www.prubenefitscenter.com), open the “Retirement Planning” drop-down list;

• Select “Beneficiaries,” then scroll to the Retirement Plan and select “Update Beneficiaries”; and

• Follow the on-screen instructions.

After adding a Beneficiary, you must select the person you would like to be designated as your Beneficiary.

If spousal consent is required, you will need to print and complete a spousal consent form.


Using the Prudential Benefits Center Website to Begin the Retirement Process To receive any benefit earned under the Retirement Plan, generally you—or anyone entitled to a benefit—must apply for it. To commence your pension benefit, an application should be completed and filed between 30 and 60 days before the date you want your Retirement Plan benefit to commence. If you are preparing to retire directly from active service, you should view and print the “Your Retirement Guide” and Commencement Checklist, which are designed to guide you through the retirement process, on the Prudential Benefits Center website (at www.prubenefitscenter.com), then open the “Retirement Planning” drop-down list; and then click the “Retirement Process” link. Click on “Making Your Pension Benefit Elections” to begin the process online. You may complete the entire process online or call the Prudential Benefits Center for assistance from a dedicated retirement specialist.

Which Retirement Plan Formula Applies to You The Retirement Plan formula that applies to you depends on when you were hired or rehired, and whether or not you were eligible for the Pension Choice Election process. You may have a benefit under the Cash Balance Formula, the Traditional Pension Formula or both. To determine which benefit formula(s) apply to your benefit, please refer to the “Which Retirement Formula Applies to You” section of the Retirement Plan SPD booklet. You can also access this information on the Prudential Benefits Center website via the Internet (at www.prubenefitscenter.com).

Please refer to the Retirement Plan SPD and any subsequent related SMMs of the SPD booklet for additional information regarding your Retirement Plan benefit.


Cash Balance Formula What Happens to Your Cash Balance Formula Benefit Once Your Employment Ends The following describes the impact on your Cash Balance Formula benefit when your employment with Prudential and its Affiliates ends:

• Basic Credits will be added to your Cash Balance Account until you no longer receive Eligible Earnings;

• Interest Credits will be added to your Cash Balance Account each month based on the value of your Cash Balance Account at the beginning of the month. Interest Credits will continue to be added to your account each month until payment of your Cash Balance Formula benefit commences;

• Vesting Service will generally end as of the date your employment ends;

• Annual Statements will be sent to you automatically until payment of your Cash Balance Formula benefit commences. You can request your balance at any time by calling 1-800-PRU-EASY (1-800-778-3279) and following the prompts for Pension. All statements will be mailed to your home address on record; and

• Beneficiary Designations that you made while you were still employed will remain in effect until you change them. You can make a new Beneficiary election or update a previous election at any time, subject to the rules outlined below:

If you are single, you may designate anyone as your Cash Balance Formula Beneficiary. If you are single upon your death and have no surviving Beneficiary(ies), or you have not designated any Beneficiary(ies), the entire value of your Cash Balance Account will be paid to your estate; or

If you are married, and have not yet reached January 1 of the year of your 35th birthday, your Cash Balance Formula Beneficiary automatically will be your Spouse. If you are married and have reached January 1 of the year of your 35th birthday, your Cash Balance Formula Beneficiary automatically will be your Spouse, unless you designate a different Beneficiary(ies) and your Spouse provides his/her written, notarized consent to that Beneficiary designation.

You may use the Prudential Benefits Center website at www.prubenefitscenter.com to name a beneficiary. Simply open the “Retirement Planning” drop-down list, select “Beneficiaries,” then scroll to Retirement Plan, select “Update Beneficiaries” and follow the on-screen instructions. If spousal consent is required, you will need to print and complete a spousal consent form.

For information on how your Cash Balance Formula benefit is determined, please refer to the “How Your Cash Balance Formula Benefit Is Determined” section of the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

When You May Commence Your Vested Cash Balance Formula Benefit If You Are Not Vested If your Employment with Prudential and its Affiliates ends before you become Vested, you are not entitled to any benefit under the Cash Balance Formula.

If You Are Vested If you are Vested in your Cash Balance Formula benefit, you are eligible to commence your Cash Balance Formula benefit on the first day of any month following the date your employment with Prudential and its Affiliates ends. For example, if your employment ends on February 15, you may elect to commence your Vested Cash Balance Formula benefit as early as March 1, regardless of your age, subject to the Retirement Plan’s administrative rules.

If your employment ends prior to your 65th birthday, you may elect either to:


• Receive your Cash Balance Formula benefit on the first day of any month following the date your employment with Prudential and its Affiliates ends; or

• Defer the receipt of your Cash Balance Formula benefit to a later date, but no later than the first day of the month on or following your 65th birthday (unless your benefit falls under the “Payment of Small Pensions” provisions explained in the Retirement Plan SPD booklet). You can also access this information via the Internet (at www.prubenefitscenter.com).

By electing to commence your pension benefit prior to age 65, you may be foregoing certain interest and/or other benefits that would otherwise be included in your benefit. When you receive your commencement package, you will receive more detailed information on the consequences of not deferring receipt of your benefit.

If your employment ends after your 65th birthday, you must commence your Cash Balance Formula benefit as of the first day of the month on or following the date your employment with Prudential and its Affiliates ends.

Please note: If you elect to receive your Cash Balance Formula benefit as a lump sum, you cannot receive the payment on the first day of the month following the date your employment with Prudential and its Affiliates ends. Assuming the timely completion of required paperwork, the earliest the payment can be made is three months after your employment ends.


For more information, please refer to the “When You May Commence Your Cash Balance Formula Benefit” section of the Cash Balance portion of the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

How Your Vested Cash Balance Formula Benefit Can Be Paid If you are Vested in your Cash Balance Formula benefit, you can choose how you would like to receive your Cash Balance Formula benefit (unless your benefit falls under the “Payment of Small Pensions” provisions explained in the Retirement Plan SPD booklet). Your Cash Balance Formula benefit can be paid in one of the following forms of payment:

• Single Life Annuity;

• 50% Qualified Joint and Survivor Annuity;

• 75% Qualified Optional Survivor Annuity;

• 100% Joint and Survivor Annuity;

• 50% Contingent Annuity; or

• Lump Sum (including eligible rollover to PESP or another qualifying plan or account).

IMPORTANT: If you elect to receive your Cash Balance Formula benefit as a lump sum, you can elect to have all or a portion of the lump sum directly rolled over to The Prudential Employee Savings Plan (PESP), another employer’s Tax-Qualified Plan or certain IRAs. However, if you receive a lump-sum distribution from the Supplemental Retirement Plan, it is not eligible for rollover to PESP, another employer’s Tax-Qualified Plan or an IRA because the Supplemental Retirement Plan is a non-qualified plan.



For more information about each form of payment, please refer to the “How Your Cash Balance Formula Benefit Can Be Paid” section of the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

What Happens Upon Your Death If You Die Before Cash Balance Formula Benefit Payments Commence If you die before your Cash Balance Formula benefit payments commence, your surviving Spouse or designated Beneficiary(ies) will receive the entire value of your Cash Balance Account. This benefit can be paid as a Single Life Annuity or as a Lump Sum.

If You Die After Cash Balance Formula Benefit Payments Commence If you die after your payments commence under the Cash Balance Formula, your surviving Spouse or designated Beneficiary(ies), as applicable, will receive a death benefit only if the form of payment you elected provided for such benefit.

For more information about how a death benefit is paid from your Cash Balance Account, please refer to the “Survivor Benefits” section of the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

For More Information If you have any questions about your Cash Balance Formula benefit or this booklet, contact a Prudential Benefits Center Representative by following the instructions in the “How to Access Information About Your Capital Accumulation Plans” section beginning on page 27.

To commence your Cash Balance Formula benefit, visit the Prudential Benefits Center website (at www.prubenefitscenter.com), then open the “Retirement Planning” drop-down list and select the “Retirement Process” link. Click on “Making Your Pension Benefit Elections” to begin the process online. You may complete the entire process online or call the Prudential Benefits Center for assistance from a dedicated retirement specialist.


Traditional Pension Formula What Happens to Your Traditional Pension Formula Benefit Once Your Employment Ends The following describes the impact on your Traditional Pension Formula benefit when your employment with Prudential and its Affiliates ends:

• Benefit Accruals will generally end as of the date your employment ends; and

• Vesting Service will generally end as of the date your employment ends.

For more information on how your Traditional Pension Formula benefit is determined, please refer to “How Your Pension Benefit Is Calculated” under the section “If You Are Not Retirement-Eligible When Your Employment Ends” in the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

When You May Commence Your Vested Traditional Pension Formula Benefit If You Are Not Vested If your employment with Prudential and its Affiliates ends before you become Vested in your pension benefit under the Traditional Pension Formula, you are not entitled to any benefit under the Traditional Pension Formula.

If You Are Vested You may elect to commence your Vested Traditional Pension Formula benefit on the first day of any month on or following your 55th birthday, but no later than the first day of the month on or following your 65th birthday, your Normal Retirement Date. If you elect to commence your Traditional Pension Formula benefit prior to your Normal Retirement Date, your monthly pension benefit payment amount may be reduced to take into account that payments will be made to you over a longer period of time. The later you commence your pension benefit before age 65, the less the reduction will be. When you receive your commencement package, you will receive more detailed information on the consequences of not deferring receipt of your benefit.

For more information, please refer to the “When You May Commence Your Pension Benefit” section of the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).


How Your Traditional Pension Formula Benefit Can Be Paid You can choose how you would like to receive your Traditional Pension Formula benefit (unless your benefit falls under the “Payment of Small Pensions” provisions explained in the Retirement Plan SPD booklet). Because you are not Retirement-Eligible, your Traditional Pension Formula benefit can be paid in one of the following normal forms of payment:

• Life Annuity; or

• 50% Qualified Joint and Survivor Annuity.

In addition to the normal forms of payment listed above, you may elect to receive your Traditional Pension Formula benefit under one of the following optional forms of payment:

Optional Forms of Payment:

• 75% Qualified Optional Survivor Annuity; and


• 100% Joint and Survivor Annuity.

For more information, please refer to “How Your Pension Benefit Can Be Paid” under the section, “If You Are Not Retirement-Eligible When Your Employment Ends” in the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).


What Happens Upon Your Death If You Die Before Traditional Pension Formula Benefit Payments Commence If you are married throughout the one-year period prior to your death, your surviving Spouse will be eligible to receive 50% of the monthly Traditional Pension Formula benefit you would have received under the 50% Qualified Joint and Survivor Annuity form of payment (provided you and your Spouse did not waive this pre-retirement benefit). Your Spouse may elect to commence this pension benefit as of the first day of any month on or following your 55th birthday; however, your Spouse must commence this benefit no later than the first day of the month on or following your 65th birthday. The same early commencement rules and Early Pension Factors that would apply to your monthly Traditional Pension Formula benefit will also apply to your surviving Spouse’s benefit.

If you are not married or if you have been married for less than one year and you are not yet Retirement-Eligible, there will be no death benefit payable under the Traditional Pension Formula.

If You Die After Traditional Pension Formula Benefit Payments Commence If you die after your payments commence under the Traditional Pension Formula, your surviving Spouse will receive a death benefit only if the form of payment you elected provides for such benefit.

For more information pertaining to Survivor Benefits on your Traditional Pension Formula benefit, please refer to the “Survivor Benefits” section of the Retirement Plan SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

For More Information If you have any questions about your Traditional Pension Formula benefit or this booklet, contact a Prudential Benefits Center Representative by following the instructions in the “How to Access Information About Your Capital Accumulation Plans” section beginning on page 27.

To commence your Cash Balance Formula benefit, visit the Prudential Benefits Center website (at www.prubenefitscenter.com), then open the “Retirement Planning” drop-down list and select the “Retirement Process” link. Click on “Making Your Pension Benefit Elections” to begin the process online. You may complete the entire process online or call the Prudential Benefits Center for assistance from a dedicated retirement specialist.


Supplemental Retirement Plan The Prudential Supplemental Retirement Plan (the Supplemental Retirement Plan) is a “non-qualified” plan that provides benefits to eligible Employees whose benefits under Components One and Three of the Retirement Plan are limited by the Code. The Supplemental Retirement Plan covers both the Cash Balance Formula and the Traditional Pension Formula.

If your Retirement Plan benefit has been limited, you are eligible to receive the portion of your benefit that exceeds these Code limits through the Supplemental Retirement Plan.

Accessing Supplemental Retirement Plan Information Through the Prudential Benefits Center Website You can access information about the Supplemental Retirement Plan through the Prudential Benefits Center website 24 hours a day, 7 days a week via the Internet (at www.prubenefitscenter.com).

If You Are Eligible to Receive a Benefit Under the Supplemental Retirement Plan’s Cash Balance Formula


How Your Supplemental Retirement Plan Benefit Under the Cash Balance Formula Will Be Paid Generally, your Supplemental Retirement Plan benefit under the Cash Balance Formula will be paid as a lump sum. Certain Employees who had a Supplemental Retirement Plan benefit on January 1, 2008, and did not commence that benefit prior to January 1, 2009, were given an opportunity to elect to receive their Supplemental Retirement Plan benefit in the form of an Annuity. If you elected an Annuity, your benefit will be paid as a Single Life Annuity if you are not married when your Supplemental Retirement Plan benefit begins, or a 50% Joint and Survivor Annuity if you are married when your Supplemental Retirement Plan benefit begins.

IMPORTANT: If you receive a lump-sum distribution from the Supplemental Retirement Plan, it is not eligible for rollover to PESP, another employer’s Tax-Qualified Plan or an IRA because the Supplemental Retirement Plan is a non-qualified plan.

When Your Supplemental Retirement Plan Benefit Under the Cash Balance Formula Will Be Paid When you will receive your Supplemental Retirement Plan benefit under the Cash Balance Formula depends on your employee classification on January 1, 2008, (or your date of hire, if later) and on the date your Employment with Prudential and its Affiliates ends.

If you were an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later), your Supplemental Retirement Plan benefit will be paid to you on the first day of the month on or following your 65th birthday. If you were still in active service on that date, your Supplemental Retirement Plan benefit was paid to you beginning at that time and additional accruals were paid to you each January 1 following the year in which the benefit was accrued. As a result, if you accrued an additional Supplemental Retirement Plan benefit in your final year of active service, a final payment will be made to you (or begin to be made to you if you are receiving an annuity) on January 1 of the year following the date your Employment with Prudential and its Affiliates ends.

If you were any other type of Employee on January 1, 2008 (or your date of hire, if later):

• If you were not an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later) and are not an Agency Distribution Financial Professional when your Employment with Prudential and its Affiliates ends:


If your Supplemental Retirement Plan benefit is paid in the form of a lump sum, the benefit usually will be paid to you six months after the first day of the month on or following the date your Employment with Prudential and its Affiliates ends7.

If your Supplemental Retirement Plan benefit is paid in the form of an Annuity, if your Employment with Prudential and its Affiliates ends before the first day of the month on or following your 65th birthday, the benefit usually will be paid to you on the later of the following7:

1) The first day of the month on or following your 55th birthday; or

2) The first day of the month on or following the date your Employment with Prudential and its Affiliates ends. There will be a six-month delay in your payments beginning.

• If you were not an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later), but are an Agency Distribution Financial Professional when your Employment with Prudential and its Affiliates ends, the benefit usually will be paid to you at the earlier of the following7: 1) age 65, and 2) the date you are both at least age 55 and your age and years of service (when your Employment with Prudential and its Affiliates ended) added together equals 70. In any event, you will not receive your benefit until at least six months after the first day of the month on or following the date your Employment with Prudential and its Affiliates ends.

However, if you were still in active service on the first day of the month on or following your 65th birthday, your Supplemental Retirement Plan benefit was paid to you beginning at that date, rather than as described above. Additional accruals were paid to you each January 1 following the year in which the benefit was accrued. As a result, if you accrued an additional Supplemental Retirement Plan benefit in your final year of active service, a final payment will be made to you (or begin to be made to you if you are receiving an annuity) on January 1 of the year following the date your Employment with Prudential and its Affiliates ends.

FICA Taxes Your Supplemental Retirement Plan pension benefit is taxed as wages and is generally subject to Federal Insurance Contributions Act (FICA) taxes if, and to the extent that, FICA taxes have not already been paid on these benefits. As a general rule, your FICA tax obligation and applicable Federal and state income tax withholding will either be withheld from your Non-Qualified Plan benefit amount or benefit payment(s), as applicable, when these tax obligations are due and payable. However, if you are an Agency Distribution Financial Professional, although FICA taxes will be withheld, no Federal or state income taxes will be withheld on your behalf.

More information about withholding for FICA taxes and applicable income tax obligations will be provided to participants in the Supplemental Retirement Plan when the FICA taxes are determined to be due and payable.



contract) between the date your Employment with Prudential and its Affiliates ends and the date your benefit is expected to be paid to you, payment of your Supplemental Retirement Plan benefit may be further delayed based on the circumstances of your relationship with the Company as an independent contractor. If you are still performing services as an independent contractor on the first day of the month on or following your 65th birthday, then your benefit will be paid beginning on that date.


For more information, please refer to “How and When Your Cash Balance Formula Benefit Will Be Paid” and “FICA Taxes” under the “Prudential Supplemental Retirement Plan” section in the Supplemental Plans SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

If You Are Eligible to Receive a Benefit Under the Supplemental Retirement Plan’s Traditional Pension Formula


How Your Supplemental Retirement Plan Benefit Under the Traditional Pension Formula Will Be Paid Generally, your Supplemental Retirement Plan benefit under the Traditional Pension Formula will be paid as an Annuity. Certain employees who had a Supplemental Retirement Plan benefit on January 1, 2008, were given an opportunity to elect to receive their Supplemental Retirement Plan benefit in the form of a lump sum.

If you receive your Supplemental Retirement Plan benefit as an Annuity, it will be paid as a 50% Joint and Survivor if you are married, or as a Life Annuity and 15-Year Period Certain if you are single on the date your Non-Qualified Plan pension benefit begins. If you are eligible to retire, there will be no reduction in your pension to provide survivor benefits. If you are not Retirement-Eligible at the time your Employment with Prudential and its Affiliates ends, there will be a reduction in your pension to provide the survivor benefits. If you are not married when your pension begins, you may elect to receive a Single Life Annuity (with no Period Certain) that is actuarially equivalent to the Life Annuity and 15-Year Period Certain. This will result in a larger monthly benefit to you, but no benefit will be payable to your beneficiary if you die.

If your marital status when your benefit commences is different than your marital status on January 1, 2008 (or your date of hire, if later), your benefit will be determined based on your marital status on January 1, 2008 (or your date of hire, if later), and automatically adjusted based on your marital status when your benefit commences. This could result in a higher or lower payable pension benefit.

If you receive your Supplemental Retirement Plan benefit as a lump sum, it will be the actuarial present value of the benefit determined above.

IMPORTANT: If you receive a lump-sum distribution from the Supplemental Retirement Plan, it is not eligible for rollover to PESP, another employer’s Tax-Qualified Plan or an IRA because the Supplemental Retirement Plan is a non-qualified plan.

When Your Supplemental Retirement Plan Benefit Under the Traditional Pension Formula Will Be Paid When you receive your Supplemental Retirement Plan benefit under the Traditional Pension Formula depends on your employee classification on January 1, 2008 (or your date of hire, if later) and on the date your Employment with Prudential and its Affiliates ends.

If you were an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later)

If you were an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later), your Supplemental Retirement Plan benefit usually will be paid at the earlier of:

1) The first of the month on or following both your 60th birthday and completion of 30 years of service; or

2) The first day of the month on or following your 65th birthday.


However, if you were still in active service when the earlier of these occurred, your Supplemental Retirement Plan benefit was paid to you beginning at that date, rather than as described above. Additional accruals were paid to you each January 1 following the year in which the benefit was accrued. As a result, if you accrued an additional Supplemental Retirement Plan benefit in your final year of active service, a final payment will be made to you (or begin to be made to you if you are receiving an annuity) on January 1 of the year following the date your Employment with Prudential and its Affiliates ends.

If you were any other type of Employee on January 1, 2008 (or your date of hire, if later)

• If you were not an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later) and are not an Agency Distribution Financial Professional when your Employment with Prudential and its Affiliates ends, your Supplemental Retirement Plan benefit usually will be paid to you after your Employment with Prudential and its Affiliates ends on the later of the following8:

1) The first day of the month on or following your 55th birthday; or

2) The first day of the month on or following the date your Employment with Prudential and its Affiliates ends. There will be a six-month delay in your payments being made. If your payment will be a lump sum, interest will be included on the lump sum for the six months.

• If you were not an Agency Distribution Financial Professional on January 1, 2008 (or your date of hire, if later), but are an Agency Distribution Financial Professional when your Employment with Prudential and its Affiliates ends, your Supplemental Retirement Plan benefit usually will be paid to you at the earlier of the following8: 1) age 65, and 2) the date you are both at least age 55 and your age and service (when your Employment with Prudential and its Affiliates ended) added together equal 70. In any event, you will not receive your benefit until at least six months following the date your Employment with Prudential and its Affiliates ends.

However, if you were still in active service on the first day of the month on or following your 65th birthday, your Supplemental Retirement Plan benefit was paid to you beginning at that date, rather than as described above. Additional accruals were paid to you each January 1 following the year in which the benefit was accrued. As a result, if you accrued an additional Supplemental Retirement Plan benefit in your final year of active service, a final payment will be made to you (or begin to be made to you if you are receiving an annuity) on January 1 of the year following the date your Employment with Prudential and its Affiliates ends.

FICA Taxes Your Supplemental Retirement Plan pension benefit is taxed as wages and is generally subject to Federal Insurance Contributions Act (FICA) taxes if, and to the extent that, FICA taxes have not already been paid on these benefits. As a general rule, your FICA tax obligation and applicable Federal and state income tax withholding will either be withheld from your Non-Qualified Plan benefit amount or benefit payment(s), as applicable, when these tax obligations are due and payable. However, if you are an Agency Distribution Financial Professional, although FICA taxes will be withheld, no Federal or state income taxes will be withheld on your behalf.

More information about withholding for FICA taxes and applicable income tax obligations will be provided to participants in the Supplemental Retirement Plan when the FICA taxes are determined to be due and payable.


contract) between the date your Employment with Prudential and its Affiliates ends and the date your benefit is expected to be paid to you, payment of your Supplemental Retirement Plan benefit may be further delayed based on the circumstances of your relationship with the Company as an independent contractor. If you are still performing services as an independent contractor on the first day of the month on or following your 65th birthday, then your benefit will be paid beginning on that date.



For more information, please refer to “How and When Your Traditional Pension Formula Benefit Will Be Paid” under the “Prudential Supplemental Retirement Plan” section in the Supplemental Plans SPD booklet. You can also access this information via the Internet (at www.prubenefitscenter.com).

Survivor Benefits If you have not yet commenced your Supplemental Retirement Plan pension benefits before your death, pension benefits payable to your Beneficiary will depend on your marital status at the time of your death.

If you are eligible for a benefit under the Supplemental Retirement Plan’s Cash Balance Formula, pension benefits payable to your Beneficiary will be paid as a lump sum beginning on the first day of the month on or following your date of death.

However, certain Employees who had a Supplemental Retirement Plan benefit on January 1, 2008, and did not commence that benefit prior to January 1, 2009, were given an opportunity to elect the form of payment their Beneficiary would receive if the employee died before his/her Supplemental Retirement Plan benefit began. The available forms were a Single Life Annuity and a lump sum. An employee eligible for this election may change it at any time, however, there will be a one-year waiting period before the election will become effective.

If you die after your benefit begins, the benefit payable to your beneficiary depends on the form of payment you are receiving. However, if you were in active service on the first of the month on or following your 65th birthday and die, any benefit you accrued that has not yet begun to be paid to you will be paid to your surviving beneficiary, according to the elections made regarding pension benefits made to your Beneficiary if you were to die before receiving your pension.

If you are eligible for a benefit under the Supplemental Retirement Plan’s Traditional Pension Formula, and you are married at the time of death, your beneficiary will receive 50% of the benefit that would have been payable to you as if you had commenced receiving benefits on the date of death. If you are single at the time of your death, your beneficiary will receive a Period Certain Annuity for 15 years equal to the benefit that would have been payable to you as if you had commenced receiving benefits on the date of death.

If you are married and become single, or vice versa, there will be a one-year delay in the change of your marital status applying to the survivor benefit. For example, if you are married and become single, and die within one year of that happening, your benefit will be paid to your beneficiary as a 50% survivor benefit (rather than a 15-Year Period Certain).

However, certain Employees who had a Supplemental Retirement Plan benefit on January 1, 2008, were given an opportunity to elect the form of payment their Beneficiary would receive if the Employee died before his/her Supplemental Retirement Plan benefit began. The available forms were an annuity described above and a lump sum. An Employee eligible for this election may change it at any time, however, there will be a one-year waiting period before the election will become effective.

If you die after your benefit begins, the benefit payable to your beneficiary depends on the form of payment you are receiving.

If your Supplemental Retirement Plan benefit began to be paid to you while you were in active service and you die, any benefit you accrued that has not yet begun to be paid to you will be paid to your surviving beneficiary according to the elections made regarding pension benefits made to your beneficiary if you were to die before receiving your pension.


Section III - Stock Plans


Introduction The information on the following pages is intended to highlight certain information about how the vesting status of your grants, if any, made under the Prudential Financial, Inc. Omnibus Incentive Plan (“Omnibus Plan” or “Plan”) and the Prudential Financial, Inc. Stock Option Plan (which was merged into the Omnibus Plan) are affected when your employment with Prudential or its affiliates ends. This information does not replace or supersede any information that can be found in the Omnibus Plan Document or the program terms approved by the Compensation Committee of the Board of Directors of Prudential. If there are any discrepancies or conflicts between the information discussed in this document and the actual Plan Document, the Plan Document, as interpreted by the Plan Administrator in its sole discretion will always govern.

Also provided is information about what happens to your Prudential Stock Purchase Plan accounts, if applicable, when your employment ends or in the event of your death.

Status of Stock Grants When Your Employment Ends The vesting status of your grants is affected by whether, when, and why your employment with Prudential or one of its affiliates ends.

For further information regarding these grants, see:

• The original grant materials sent to all eligible participants at the time of the grant;

• “How to Access Information About Your Stock Plan Accounts” beginning on page 53; and

• The “Employee Stock Ownership” link on the “PRU Today,” (Pay & Retirement Savings, then the “Employee Stock Ownership” link).

The impact of a termination of employment on grants made under the Long-Term and Mid-Term Incentive Programs pursuant to the Plan, which may consist of stock options, restricted stock, restricted stock units, book value units, performance units or performance shares (if applicable), will vary depending on the year the option, share or unit was granted, and may require you to sign a Separation Agreement and General Release or a General Release of Claim, as may be applicable.

You can exercise on the date the options expire, but only during New York Stock Exchange (“NYSE”) trading hours. If the options expire on a day that the NYSE is closed, you can exercise only during market hours on or before the last day of NYSE trading prior to the options’ expiration date. You will not be able to exercise after the date your options expire.

Your rights under all Long-Term and Mid-Term Incentive Program grants of stock options, restricted stock, restricted stock units, book value units, performance units and/or performance shares are subject to the Terms and Conditions (or Grant Acceptance Agreements you executed for each grant made in 2008 or earlier), as well as to the general terms of the Omnibus Plan. Therefore, the effect of your termination on each grant may vary, and you should refer to your Terms and Conditions (or, for grants made in 2008 or earlier, Grant Acceptance Agreements and program booklets you received at the time of your execution of each agreement for details). With respect to grants of stock options, restricted stock, restricted stock units and performance shares, you can access information on your awards, including copies of the Terms and Conditions for each grant (or the Grant Acceptance Agreements for grants made in 2008 or earlier), through the E*TRADE website (at www.etrade.com/stockplans). With respect to grants of book value units and performance units, you can access information on your awards, including copies of the Terms and Conditions, through the MullinTBG website (at www.MullinTBG.com). Please note you must have a user ID and password to access your information.

Prudential Stock Purchase Plan If your employment ends prior to a purchase date, generally all contributions accumulated between the last purchase date and the date your employment ends will be returned to you as soon as administratively practical. You retain any stock purchased prior to the last date of your employment.


Purchased shares remain in your E*TRADE account until you sell them or transfer them out of your E*TRADE account.

If you should die prior to a purchase date, generally all contributions accumulated between the last purchase date and the date of your death will be paid to your estate as soon as administratively practical. Stock purchased prior to your death and held in your E*TRADE account will be treated as a qualifying disposition as of your date of death. The shares held in your account will be distributed to your estate as instructed by your will, trust or probate court.

How to Access Information About Your Stock Plan Accounts E*TRADE provides brokerage services for your stock options, restricted stock, restricted stock units, book value units, performance units and performance shares. You have an E*TRADE account, which provides, in one consolidated account, the opportunity to view grant information, exercise options, read plan brochures and tax information, electronically accept grants and use a modeling tool. To view this account, visit the E*TRADE website (at www.etrade.com/stockplans). To access information on your book value units and performance units awards, visit the MullinTBG website (at www.MullinTBG.com).

E*TRADE Account

Please note: You must activate your E*TRADE account and obtain a user ID and password to access your information.

If you have previously accessed your account to review your holdings or to accept grants under a long-term compensation program, then you have already activated your account and have a user ID and password. If you have forgotten your user ID or password, follow the instructions on the www.etrade.com/stockplans logon screen to reset your password, or you may contact E*TRADE Customer Service for a password reset by calling 1-800-838-0908. If you are accessing your account or exercising options online for the first time, you will need to activate the account.

How to Activate Your E*TRADE Account

1) Open your Internet browser. Type in www.etrade.com/activate in the address bar and click “Go.”

2) Click on “Get started.”

3) Review and follow the instructions on the screen for activating your account. Enter our stock ticker symbol: PRU. You will then need your Employee ID (can be found on your online pay statement) or your U.S. Social Security number.

4) Once you input this information, you will be prompted for your authentication code, which you should have received from E*TRADE after your grant was issued. If you do not have your authentication code, click on one of the choices for receiving one and a new code will be sent to you. You may also request a new authentication code by calling a Customer Service Representative at 1-800-838-0908.

5) Once you enter your authentication code, you will have the opportunity to review your personal information and update your profile, if necessary.

6) You will then need to review and/or answer questions related to the account registration process.

7) Lastly, you will have the opportunity to create an online user name and password for your E*TRADE account. (Note: if you are already an E*TRADE customer, you have the option of entering an existing E*TRADE user ID, which would link your existing E*TRADE account to your new Prudential stock plan account.)

Please note that when you activate this account, you open a personal brokerage account, and you are entering into an agreement directly with E*TRADE Financial. It is therefore important to understand that you are responsible for monitoring the balances in this account.


Registered representatives of the Company’s registered broker-dealers, including Pruco Securities, LLC, and Prudential Investment Management Services LLC, are not required to receive approval from or notify the Company’s Compliance Department prior to opening their E*TRADE account.

MullinTBG Account You can view book value units and performance units awarded in the Mid-Term Incentive Program and Long-Term Incentive Program at the website maintained by MullinTBG, a Prudential Financial company. However, now that your employment has ended with Prudential, you will no longer be able to access your MullinTBG account via https://deferredcompensation.prudential.com and will need to create a new username and password.

• To activate your online account, simply go to www.MullinTBG.com.

• Click on “Participant” in the top right-hand corner of the web page to create your new username and password.

1) Select “Click here to set up your online access.”

2) Enter your Plan ID 32078 and then click “Next.”

3) Your Unique Identifier is your Prudential Employee ID.

• Going forward, you will need to login directly to www.MullinTBG.com and use your newly created username and password to access your account details.

If you have any questions or need any assistance, please contact your dedicated Prudential team at MullinTBG at 1-888-638-4220 between 9 a.m. and 9 p.m., Eastern time, Monday through Friday or email (at [email protected] or [email protected]).

If You Have Questions Contact E*TRADE at 1-800-838-0908 or 1-650-599-0125 for international access. You may also email [email protected] with any questions.

If you have any questions about your MullinTBG account, please call MullinTBG at 1-888-638-4220 or email (at [email protected] or [email protected]).

https://deferredcompensation.prudential.com/

http://www.mullintbg.com/

http://www.mullintbg.com/

mailto:[email protected]

ORD. 112367Ed. 01/2013

© 2013 The Prudential Insurance Company of America751 Broad Street, Newark, NJ 07102-3777ALL RIGHTS RESERVED. www.prudential.com

CPS# H000136762

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Benefits When Your Employment Ends - Prudential Financial · 2015-06-01 · Benefits When Your Employment Ends ... FICA Taxes ... The following information is designed to assist you