Newark, N.J. (PRWEB) October 28, 2009
Prudential Financial (NYSE: PRU) has launched "Redefining Retirement," a new model for the design, management and administration of workplace-provided retirement plans, raising the bar for the industry by delivering a comprehensive and effective solution to the retirement-savings crisis now plaguing American workers.
"In the past year, Americans lost $1 trillion of their retirement savings, forcing plan sponsors, plan participants, and regulators to take a step back and question the ongoing viability of defined contribution programs," said Christine Marcks, president of Prudential Retirement, a business of Prudential Financial Inc. "With 'Redefining Retirement,' we're addressing those concerns with a holistic and distinctive approach that integrates industry 'best practices' for the benefit of participants and sponsors alike."
For plan participants, the new and innovative model creates a retirement "glide path" that carries individuals not only to retirement, but through retirement. Auto-pilot plan features--such as automatic enrollment, automatic contribution escalation, and automatic asset allocation--are combined with Prudential IncomeFlex® TargetSM (IFX Target), a guaranteed minimum withdrawal benefit product, to help ensure adequate savings and a guaranteed stream of income in retirement.
For plan sponsors, "Redefining Retirement" offers streamlined processing, leading to greater cost efficiencies. And, perhaps most importantly, the new model provides additional levels of fiduciary risk support and enhanced levels of indemnification.
"Today, more than ever before, running a successful retirement program has become increasingly difficult for plan sponsors," said Marcks. "Our' Redefining Retirement' model stands apart by mitigating risk, by helping sponsors meet their fiduciary responsibilities, and by offering protective pledges, or commitments, that indemnify sponsors for certain losses."
Prudential's new approach to retirement-plan design and management includes four key elements:
- Smart plan design--which optimizes plan participation through auto-enrollment and better matches. It boosts savings with an automatic contribution accelerator, maximizes savings by helping participants follow a thoughtful planning strategy, encourages continuous saving by discouraging loans, maximizes accumulations with catch-up contributions and eliminates costly inactive accounts by allowing small-balance rollovers;
- Streamlined processing--which helps to gain cost efficiencies and automates data exchange, lightens the administrative load with outsourcing, and simplifies processing by automating all transactions;
- Investments and guaranteed income--which deliver differentiation through qualified default investment alternatives, including Prudential's target date funds, as well as an option that delivers guaranteed income for life. The model also offers complete investment flexibility through Prudential's sub-advised options and access to retail mutual funds. Participants also will benefit from the solid guarantees of Prudential's Stable Value offerings; and
- Lifelong education and support--which provide convenient and effective education through powerful online capabilities.
"The market is hungry for solutions that work," said Jamie Kalamarides, senior vice president, Retirement Solutions. "We believe that 'Redefining Retirement' is the beginning of a broader, long-term shift in the design, management and administration of retirement programs, and we also believe that Prudential is one of only a few providers in the industry that can deliver this kind of bold solution for the systemic problems facing the U.S. retirement system."
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 $151 billion in retirement account values as of June 30, 2009.
Prudential Financial, Inc., a financial services leader with approximately $580 billion of assets under management as of June 30, 2009, 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/.