Press Release
Prudential Retirement Successfully Transitions the North Carolina 401k Plan
NEWARK, NJ, October 2, 2003 -- Prudential Retirement, a business of Prudential Financial (NYSE:PRU), today announced that it has successfully completed the transition of the North Carolina 401k Plan from Branch Banking and Trust (BB&T), its former provider. The Plan, with $2.3 billion in assets and more than 181,000 participants, is the nation's largest public 401k plan.
Prudential Retirement, in partnership with the North Carolina Department of State Treasurer and BB&T, began the process in April and completed it on September 22. It is expected that the transition will save Plan members $22.3 million over the next five years. In addition, Prudential's Stable Value Fund's current crediting rate offers participants a significant increase from the yield they received from previous stable value options.
"We were able to deliver a timely conversion against an aggressive timeframe while minimizing member disruptions," said Paul Chong, executive vice president, Prudential Retirement. "Going forward, we are pleased to have the opportunity to serve North Carolina's public employees with Prudential's creative solutions, innovative technology offerings, and client-centric team approach that we believe will help members reach their retirement goals."
Since becoming the new provider of the Plan, Prudential has conducted over 1,700 employer and member education and update meetings. In addition, the company implemented a comprehensive print and e-mail communications campaign to help familiarize employers and members with the new program.
"This transition represents a victory for North Carolina 401k Plan members who can now take advantage of the benefits Prudential has to offer," said North Carolina State Treasurer Richard Moore. "This change will mean real savings and better retirement resources for North Carolina public employees."1
Prudential Retirement, which already has 44 offices and over 235 employees throughout North Carolina, recently opened a dedicated office for the North Carolina 401k Plan at a ribbon cutting ceremony in Raleigh. The new location at 150 Fayetteville Street Mall, will be the home office of 12 enrollment and education specialists.
Prudential Retirement, a business unit of Prudential Financial, delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art recordkeeping, administration, investment management, comprehensive employee investment education and communications, and trustee services. With 75 years of group pension experience, Prudential Retirement meets the needs of nearly one million defined contribution participants and 600,000 defined benefit annuitants, with more than $65 billion of retirement assets under management and administration as of June 30, 2003.
Prudential Financial companies, with approximately $422 billion in total assets under management as of June 30, 2003, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the U.S. These companies offer a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.
1. For additional information on the conversion, please visit the www.treasurer.state.nc.us
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