PGIM Mutual Funds
Intended for Financial Professional and Institutional Plan Sponsor Use.

DAY ONE TARGET DATE FUNDS

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The Prudential Day One® Funds are available in multiple vehicle structures and share classes to address a variety of plan needs.

With today’s retirement planning challenges, what do your client’s want most from their retirement plan?

Potential for growth…downside income protection…access to their assets…flexibility to adjust contributions. They are all important retirement planning considerations. But, what do they want most? The ability to retire with the confidence that they will not outlive their income.

That is why we offer Prudential IncomeFlex Target®, a retirement planning innovation with:

  • Guaranteed lifetime income

  • Sustained potential for growth

  • Downside market protection for retirement income

  • Flexible access to your market value

Prudential Day One IncomeFlex Target Funds is offered by Prudential Retirement Insurance and Annuity Company (PRIAC).

HOW THE INCOME GUARANTEES WORK

The income guarantees help your clients accumulate assets and convert them into guaranteed lifetime income by tracking two key values:

The Market Value is a daily value that is not guaranteed and fluctuates based on fund performance. If permitted by the terms of the retirement plan, the Market Value can be passed on to beneficiaries as a death benefit.

The Income Base is used to calculate guaranteed values and is set when the guarantees are activated. Like the Market Value, the Income Base also increases with contributions. In addition, on the participant’s birthday, the Income Base increases to reflect any gains from fund performance. If declining markets result in negative performance, the Income Base is protected.

On the day a participant decides to “Lock-In” his or her guaranteed benefit, the participant’s Market Value and Income Base are compared (as of the previous business day). If the Market Value is higher, the Income Base automatically adjusts upward to match. A participant’s Income Base is used to determine his or her lifetime annual withdrawal amount. Prudential Retirement guarantees that the participant can withdraw this amount each year for the rest of his or her life. Unlike the Market Value, which is available for withdrawals permitted by the retirement plan, the amount reflected as the Income Base is never available as a withdrawal.

Even if either declining market performance or the participant’s annual guaranteed withrawals reduce the Market Value to zero dollars, Prudential Retirement will continue to pay his or her lifetime annual withdrawal amount for as long as he or she lives (and the participant’s spouse thereafter, if elected.

Guarantees are based on the claims-paying ability of Prudential Retirement Insurance and Annuity Company (PRIAC), and are subject to certain limitations, terms, and conditions. Withdrawals or transfers (other than transfers between Active IncomeFlex Target Funds) proportionately reduce guaranteed values prior to locking-in. After Lock-in, withdrawals in excess of the Lifetime Annual Withdrawal Amount will reduce future guaranteed withdrawals proportionately and may even eliminate entirely.

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The hypothetical example above is for illustration purposes only. It does not reflect an actual experience with the product, an actual account value or the performance of any investment rate of return.

To discuss how you can implement IncomeFlex in a plan or for more information, please call 1-877-275-9786

Additional Information about IncomeFlex Target

⇣ How much does IncomeFlex Target cost?
 

In addition to investment management fees, activating the IncomeFlex Target guarantee also triggers an annual 1% guarantee fee. This fee will reduce the fund’s investment return and is reflected in the Market Value on a daily basis.

⇣ When does this fee take effect?
 

When the guarantee is activated.

⇣ Can participants change their mind and cancel the IncomeFlex Target guarantee?
 

Yes. Participants can transfer some or all of what they’ve invested in the Day One IncomeFlex Target Funds into another investment option in the plan at any time. This will cancel guarantees, but no additional fees or charges will apply. However, any guarantees would be forfeited.

⇣ Is there a way to also provide income to a participant’s spouse?
 

Yes, married participants can elect the Spousal Benefit. This allows for the surviving spouse to continue receiving guaranteed lifetime income for the remainder of his/her life.

⇣ How much guaranteed income can participants withdraw each year?
 

As shown in the chart below, the amount participants can withdrawal is based on their age when they "Lock-in" and whether they elect to guarantee benefits for just themselves or their spouse or civil union partner. If they elect the Spousal Benefit and their spouse or civil union partner is younger than they are, then their spouse’s or civil union partner’s age will be used to determine this percentage.

Age at Lock-in, Benefit for Participant, Benefit for Participant & Spouse*

55-644.25%3.75%
65-695.00%4.50%
70+5.75%5.25%

*Based on the age of the younger participant or spouse.

⇣ When can participants “Lock In”?
 

Participants can “Lock In” anytime after they turn 55, provided their Lifetime Annual Withdrawal Amount is a minimum of $250.

⇣ Can a participant withdraw more in one year than their lifetime annual withdrawal amount?
 

Yes, IncomeFlex Target is flexible. But, excess withdrawals will reduce a participant’s lifetime annual withdrawal amounts in subsequent years. Note: If a participant’s Market Value falls to zero dollars due to excess withdrawals, the lifetime annual income amount will no longer be received.

⇣ What happens to the IncomeFlex guarantee if a participant leaves the Plan?
 

Participants may be able to transfer or roll over their IncomeFlex guarantee into an individual retirement account that invests in a variable annuity contract available through Prudential Retirement. This contract may have substantially different fees, investments, and provisions affecting the guarantees. If a participant rolls any portion of their IncomeFlex Market Value into anything other than a specific Prudential-issued variable annuity, all Prudential IncomeFlex guarantees will immediately cease.

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These materials are for informational or educational purposes only. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In providing these materials Prudential Investments is not acting as your fiduciary as defined by the Department of Labor. Please consult with a qualified investment professional if you wish to obtain investment advice.


The target date is the approximate date when investors plan to retire and may begin withdrawing their money. The asset allocation of the target date funds will become more conservative until the date which is ten years prior to the target date by lessening the equity exposure and increasing the exposure in fixed income investments. The principal value of an investment in a target date fund is not guaranteed at any time, including the target date. There is no guarantee that the fund will provide adequate retirement income.


A target-date fund should not be selected solely based on age or retirement date. Before investing, participants should carefully consider the fund's investment objectives, risks, charges and expenses, as well as their age, anticipated retirement date, risk tolerance, other investments owned, and planned withdrawals.


The stated asset allocation may be subject to change. It is possible to lose money in a target date fund, including losses near and following retirement. Investments in the Funds are not deposits or obligations of any bank and are not insured or guaranteed by any governmental agency or instrumentality.


The Prudential Day One IncomeFlex Target® Funds were designed for use with Prudential IncomeFlex Target, an in-plan guaranteed retirement income product, and are available as insurance company separate accounts under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT. PRIAC does not guarantee the investment performance or return on contributions to those separate accounts. PRIAC is solely responsible for its financial condition and contractual obligations. Availability and terms may vary by jurisdiction, subject to regulatory approvals. Guarantees are based on claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Contract form #GA-2020- TGWB4-0805. For more information, participants should access the participant service center or call 1-877- 778-2100 for a copy of the Prudential IncomeFlex Target Important Considerations before investing. PRIAC is a Prudential Financial company.


The Day One IncomeFlex Target Funds, as insurance company separate accounts, are investment vehicles available only to qualified retirement plans, such as 401(k) plans and government plans, and their participants. Unlike mutual funds, the Day One Funds, as separate accounts, are exempt from Securities and Exchange Commission registration under both the Securities Act of 1933 and the Investment Company Act of 1940, but are subject to oversight by insurance regulators. Therefore, investors are generally not entitled to the protections of the federal securities laws.


© 2016 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.


0299920-00001-00 Ed. 12/2016