Prudential IncomeFlex Frequently Asked Questions

Prudential IncomeFlex (Unregistered Offerings) Frequently Asked Questions

What is Prudential IncomeFlex? Prudential IncomeFlex? is a guaranteed lifetime retirement income benefit available in your defined contribution retirement plan. Prudential IncomeFlex is a group variable annuity contract issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, Connecticut.

What does IncomeFlex do? IncomeFlex's innovative retirement planning features:

Provide growth opportunity when markets rise Protect future retirement income when markets fall Allow complete access to assets at all times1 Deliver guaranteed retirement income for life, regardless of future market volatility2

IncomeFlex can help replace uncertainty with certainty in your vision of retirement, and help inspire confidence that you will be able to retire when you want and in the lifestyle you want.

Where can I find detailed information on IncomeFlex? For a comprehensive description of IncomeFlex, refer to these three primary sources of information, located in the IncomeFlex section of your plan website:

Prudential IncomeFlex Product Brochure Prudential IncomeFlex Important Considerations Prudential IncomeFlex Fund Fact Sheet (located in the performance section of your plan website)

How do I know if IncomeFlex is right for me? In addition to providing a simple way to create a retirement income stream that is guaranteed to last a lifetime, IncomeFlex also provides guarantees that protect against market declines.

This insurance against market risk is especially important to those who are nearing retirement. Even relatively short-term market losses in the years just prior to and during retirement can have a lasting effect on your ability to generate retirement income. If you are ten years or less from retirement, learning more about IncomeFlex may be of particular relevance to you.

Who stands behind the IncomeFlex investment guarantees? The IncomeFlex guarantee is issued by Prudential Retirement Insurance and Annuity Company (PRIAC), a Prudential Financial company. Guarantees are based on the claims-paying ability of the issuing company. Prudential Retirement Insurance and Annuity Company, Prudential Financial, and Prudential Retirement? are each responsible for its contractual obligations and financial condition.

How do I get started? Once you are eligible, according to the provisions of your retirement plan, there are two ways to get started:

1. You can direct a percentage of your regular retirement plan contributions into the IncomeFlex fund. 2. You can transfer money from any other retirement plan investment(s) into the IncomeFlex fund.

An additional fee will apply to those assets invested in IncomeFlex.

How can I keep track of my IncomeFlex market value and future income base guarantees? You can monitor your IncomeFlex investments just as you do any other investment option in your retirement plan. Detailed information on your IncomeFlex investment can be found on your retirement plan website and in your regular retirement plan account statements.

What if I retire but do not need the retirement income right away? IncomeFlex does not require you to take income withdrawals if you do not need them. You decide when you want to "Lock-In" your lifetime annual withdrawal amount. There is no pre-defined schedule (as with a fixed annuity, for example), but keep in mind that Internal Revenue Service required minimum distribution rules may apply.

How is the term "withdrawal" defined? The term "withdrawal" is defined as including all withdrawals, transfers out, loans from, or any other actions that you choose to take that reduce your IncomeFlex investment's market value.

How is the term "withdrawal period" defined? The "withdrawal period" is defined as the full year in which you may withdraw your lifetime annual withdrawal amount. It begins on your birthday and ends on the day before your next birthday.

How is the term "excess withdrawal" defined? An excess withdrawal is defined as any withdrawal from your IncomeFlex fund after "Locking-In" that is greater than your lifetime annual withdrawal amount in a given withdrawal period.

For example, if your lifetime annual withdrawal amount for a specific withdrawal period is $13,000 and you withdraw $14,000, this would result in an excess withdrawal of $1,000. In this instance, your lifetime annual withdrawal amount for subsequent withdrawal periods would be proportionately reduced.

1 Withdrawals or transfers proportionately reduce guaranteed values prior to Locking-In. After Lock-In, withdrawals in excess of the Guaranteed Annual Income Amount will reduce future guaranteed withdrawals proportionately and may even eliminate them entirely.

2 Guarantees are based on the claims-paying ability of Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, and are subject to certain limitations, terms and conditions.

Prudential IncomeFlex Funds are 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. You should consider the objectives, risks, charges, and expenses of the Funds and guarantee features before purchasing this product. The principal value of the IncomeFlex Fund is not guaranteed at any time. Like all variable investments, these funds may lose value. Availability and terms may vary by jurisdiction; subject to regulatory approvals.

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