Prudential Retirement to Help Clients Fulfill New 403(b) Regulatory Requirements

Business Editors/Financial Editors/Insurance Writers

NEWARK, N.J.--(BUSINESS WIRE)--July 22, 2008--In response to the landmark regulatory changes to 403(b) retirement plans set to take effect January 1, 2009, Prudential Retirement has issued a new Planning and Resource Guide to help its 403(b) clients manage the transition to the new regulatory environment. The guide includes an overview of Prudential Retirement’s service solutions for plan document and information sharing requirements, as well as suggestions about how to prepare for the new general administrative responsibilities plan sponsors will face under the new regulations. Prudential Retirement is a business of Prudential Financial Inc. (NYSE: PRU).

“Failure to comply with the new regulations may expose 403(b) retirement plans to a number of significantly increased compliance, liability and risk issues including plan audits, unintended tax consequences and even fines,” said Jamie Kalamarides, senior vice president, Retirement Solutions. “Prudential Retirement remains committed to the 403(b) market. We believe the new regulations present an exciting opportunity to help our 403(b) clients make changes in order to offer an improved plan to their employees. We have developed a suite of tools and services aimed at helping plan sponsors understand the regulatory requirements, simplify plan administration, and enhance plan design to improve participant outcomes.”

To address the most onerous requirement of data sharing among multiple-provider plans, Prudential will utilize the data standards developed by the 403(b) Task force of the Society of Professional Asset-Managers and Record Keepers (SPARK). “We believe that having providers utilize a consistent data sharing approach will provide the best opportunity for successful compliance. We recognize the complexity of this particular requirement and have developed tools to assist plan sponsors in fully understanding the impact to their plan,” said Kalamarides. “We’ve designed data sharing programs flexible enough to meet the needs of our diverse client base.”

The last revisions to the 403(b) regulations were made in 1964. Under the previous regulations, guidelines governing plan administration required limited involvement of the plan sponsor and generally allowed plan participants to make all choices and deal directly with the retirement plan provider to enroll, move assets or to arrange for distributions.

Under the new regulations, plan sponsors must take a more active role in administering these plans. They will now be charged with greater sponsor oversight, input and in some cases approval,” said Kalamarides, senior vice president, Retirement Solutions, Prudential Retirement. “Our proven success in the broader defined contribution and 401(k) arena will help us provide needed assistance in compliance with the new regulations to 403(b) plan sponsors and their participants. We have the solutions to help our clients understand the impact of the regulations. We can help them design and deliver written plan documentation, and educate their participants about the benefits of the plan and how to chart an appropriate course to a more secure retirement. We are working closely with our clients to assist them in their new obligations.”

Plan administrators who wish to learn more about the tools and solutions available should contact their Prudential Retirement service representative. More detailed explanations of specific provisions of the final regulations are available through Prudential Retirement Plan Analyst and Compliance Bulletins, which can be accessed by logging onto http://www.prudential.com/pensionanalyst.

Prudential Retirement, a business of Prudential Financial, Inc. (NYSE: PRU), 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 nearly 85 years of retirement experience, Prudential Retirement helps meet the needs of over 3.4 million defined contribution participants and defined benefit participants and annuitants. Prudential Retirement has $159billion in account values as of March 31, 2008.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $631 billion of assets under management as of March 31, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.

Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affiliates.

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.