Business & Finance
Business and Finance
Business and Finance
Mon, June 14, 2010 Prudential partners with ICMA-RC to offer guaranteed retirement income
NEWARK, N.J.--([ BUSINESS WIRE ])--Prudential Retirement, a business of Prudential Financial, Inc. (NYSE: PRU), and ICMA Retirement Corporation (ICMA-RC) announced today they have entered into an agreement through which ICMA-RC will make a guaranteed retirement-income solution available to more than 8,000 retirement plans, covering more than 900,000 public-sector employees.
"By investing in this fund, participants in an ICMA-RC retirement plan can ultimately benefit from a level of lifetime income that cannot be outlived, will not decrease if the stock market declines, and may, in fact, increase if the market performs well"
ICMA-RC is an independent, not-for-profit financial-services organization that provides retirement products and services. As a result of this agreement, ICMA-RC will introduce the aVantageTrust Retirement IncomeAdvantage Fund,a which will be managed by ICMA-RC and will feature Prudential IncomeFlex®, a market-leading, in-plan guaranteed retirement-income product.
aWe are very proud of the fact that a leading retirement-plan provider like ICMA-RC has not only recognized the importance of in-plan income solutions, they have also recognized the value of working with Prudential, the retirement-income leader,a said Christine C. Marcks, president, Prudential Retirement. aBy investing in this fund, participants in an ICMA-RC retirement plan can ultimately benefit from a level of lifetime income that cannot be outlived, will not decrease if the stock market declines, and may, in fact, increase if the market performs well,a she added.
According to Joan McCallen, president and CEO of ICMA-RC, aOur goal was to identify sound solutions for our public-sector employees as they start to think about retirement income, and we believe that Prudential Retirement is the right partner to help us.a
aEnsuring that public-sector employees have the retirement-saving solutions they need to provide dependable income throughout their retirement is a priority for us as we help our participants build retirement security,a McCallen added.
Under the terms of the agreement, ICMA-RC will introduce this new in-plan option to its existing clients. The fund will be a balanced portfolio investing in low-cost stock index and bond funds and is designed primarily for participants within 10 to 15 years of retirement. The agreement with Prudential provides for guaranteed lifetime income. Guarantees are based on the claims-paying ability of the issuing company.
The importance of integrating a guaranteed lifetime-income solution into qualified retirement programs was recently driven home by the U.S. Department of Labor and the Department of the Treasury. Working together, they issued a formal aRequest for Informationa (RFI) seeking ways to enhance the retirement security of participants in employer-sponsored retirement programs by facilitating access to, and use of, lifetime-income solutions or other arrangements to provide a stream of guaranteed lifetime income after retirement. Prudential Retirement participated in the RFI process.
ICMA-RC is an independent not-for-profit corporation focused on providing retirement plans and related services for more than 900,000 public employees in more than 8,000 retirement plans. Its mission is to help build retirement security for public employees by providing investment tools, financial education, and other retirement-related services. The corporation also works to ease the administrative responsibility of local governments that offer these benefits to their employees. For more information visit [ www.icmarc.org ].
Prudential Retirement delivers retirement plan solutions for public, private and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of nearly 3.2 million participants and annuitants. Prudential Retirement has $183.9 billion in retirement account values as of March 31, 2010.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $693 billion of assets under management as of March 31, 2010, has operations in the United States, Asia, Europe and Latin America. Prudentiala™s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. In the U.S., Prudentiala™s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit [ www.news.prudential.com ].
Prudential Retirement, Prudential Financial, PRU, Prudential and the Rock logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
Guaranteed income benefit is provided through group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company, Hartford, CT.This benefit, available for an additional fee,guarantees your ability to withdraw designated amount from the annuity annually, subject to rules regarding the timing and amount of withdrawals.Guarantees are based on the claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions.
The VT Retirement IncomeAdvantage Fund (the aFunda) is offered through VantageTrust, a group trust sponsored by the VantageTrust Company, a New Hampshire institution. The Fund invests in a separate account under a group variable annuity issued by Prudential Retirement Insurance and Annuity Company (aPRIACa) , Hartford, CT.Neither PRIAC nor ICMA-RC guarantees the investment performance or return on contributions to Prudentiala™s separate account. Investors should consider the objectives, risks, charges, expenses and underlying guarantee features before purchasing this product. Like all variable investments, this Fund may lose value. Availability and terms may vary by jurisdiction; subject to regulatory approvals. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Guarantees are based on PRIACa™s claims-paying ability. Contract form # GA-2020-TGWB4-0805-RC or state variation.
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