Prudential Introduces FDIC Insured Deposit Account for 401k Clients
NEWARK, NJ, November 23, 2010 -- Prudential (NYSE: PRU) has added Prudential Protection
SM Account to its suite of institutional retirement solutions in response to the unprecedented financial crises and plan sponsors' demand for products with built-in guarantees. The new product is a principal and accrued interest guaranteed investment option for its 401k clients and their employees that is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per participant.
Stable Value products offered a safe haven for investors during the financial crises. The Prudential ProtectionSM Account is an alternative stable value vehicle that allows for FDIC insurance for individual participants in 401(a) and 401k defined contribution plans and governmental 457 plans.
"Plan sponsors across the nation are obligated to not only find institutional solutions that help them manage pension benefits and risks for their employees but also to help their employees make smart financial decisions about their retirement savings," said Carlos Mello, vice president, Prudential Retirement. "These important decisions include choices about financial vehicles that provide growth and security throughout their retirement years. Prudential ProtectionSM Account complements the broad suite of institutional solutions that we offer to plan sponsors and their participants. It offers liquidity, principal protection, and a competitive rate of return for plans that use Prudential's recordkeeping platform."
Funds invested in the account are considered deposits of Prudential Bank & Trust, FSB. Prudential Bank & Trust, FSB is a Member FDIC.
"We believe that the security that Prudential ProtectionSM Account provides may be especially attractive to near-retirees who are looking now, more than ever, to preserve and grow their nest egg in addition to reducing the overall risks of fluctuating markets in their retirement portfolios," Mello said.
About Prudential Retirement
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 3.7 million participants and annuitants. Prudential Retirement has $194.3 billion in retirement account values as of September 30, 2010.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential'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. Non-deposit investment products are not FDIC insured. In the U.S., Prudential's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/
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