PREPARING TO RETIRE A Guide to the Retirement Process

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1 PREPARING TO RETIRE A Guide to the Retirement Process total rewards Retirement is exciting, but it s also a big lifestyle change. Make sure you re prepared for it.

2 PREPARING TO RETIRE As part of the retirement process, you ll need to make many decisions and take certain actions. This online guide is designed to give you the support you need as you prepare to retire from Prudential whether you re already in the process of retiring or you simply want to learn more about the retirement process. WHAT S INSIDE Getting Started... If You Plan to Retire Within the Next 12 Months... When You re Within 90 Days of Your Official Retirement Date... Retirement Action Checklist... Key Decisions... Health Care Personal Protection Decisions... Capital Accumulation Plan Decisions... Timeline and Milestones

3 GETTING STARTED When you re getting ready to retire, it s important to understand the process and know what changes to expect. At Prudential, our goal is to make the process of retiring as simple and straightforward for you as possible. That s why we provide you with access to a dedicated Retirement Counselor at the Prudential Benefits Center. Your Retirement Counselor is the key to the Prudential retirement process. He/ she will personally guide you through each step of the retirement process from confirming your retirement eligibility and helping you finalize your retirement date, to explaining the benefits available to you at retirement and helping you complete the necessary forms. Read on to learn more 3 Table of Contents

4 GETTING STARTED If You Plan to Retire Within the Next 12 Months About 12 months before you re ready to retire, call the Prudential Benefits Center at PRU-EASY ( ). Follow the prompts and ask to get in touch with a Retirement Counselor. You ll get a call back from a Retirement Counselor within two days. You ll be assigned a dedicated Retirement Counselor who will personally guide you through each step of the Prudential retirement process. Throughout the retirement process, you can contact your Retirement Counselor when you have questions or need assistance, and he/she may contact you to follow up or share important information with you. Note: You won t be assigned a Retirement Counselor until you re within 12 months of your expected retirement date. Before then, you can call the Prudential Benefits Center at PRU-EASY ( ) and follow the prompts to speak with a Retirement Specialist who can provide general retirement information. See the Retirement Action Checklist for a summary of the steps to take to retire from Prudential. 4 Table of Contents

5 GETTING STARTED When You re Within 90 Days of Your Official Retirement Date The actionable phase of the retirement process begins approximately 90 days before your official retirement date. At that time, your Retirement Counselor will prepare a Personalized Retirement Statement for you. Your statement will provide a summary of what you can expect as you retire and what actions you may need to take. You and your Retirement Counselor will review this information during a follow-up call and you ll be able to ask any questions you may have. During these final 90 days, you ll have a number of things to do. For example, you ll need to: Confirm your last day in the office with your manager and Human Resources Consultant. Confirm the accuracy of your personal information on file in Personal Profile. Verify your paid time off balance using Employee Self Service and discuss any discrepancies with your paymaster or manager. Work with your Retirement Counselor so you re ready to make important decisions about your retirement benefits, including your Retirement Plan and Prudential Employee Savings Plan (PESP) benefits and your medical coverage during retirement. (You may want to consult a personal financial advisor about these decisions.) Submit any outstanding expenses incurred on your Company credit card and/or any expense vouchers, if applicable, for reimbursement. Return all Company property, such as your ID badge, keys, credit card, laptop and BlackBerry. Enter your final additional or overtime hours into the Time Reporting Online system on or before your last day of work, if you re a non-exempt employee. For a retirement checklist that you can print and check off as you go along, see the Retirement Action Checklist. Your Retirement Counselor will also remind you of the steps you need to take along the way. 5 Table of Contents

6 RETIREMENT ACTION CHECKLIST Your Retirement Counselor will work with you to ensure that all of the i s are dotted and t s crossed as you go through the Prudential retirement process. However, if you d also like to track the progress of your retirement process, you have that option. Here s a checklist to help you understand what steps in the process you ve taken and what s left to do. You can print a copy and update it as you reach your retirement milestones. Please note: The order of the steps to take may vary based on your unique situation. For a more detailed look at what happens to your Prudential benefits when you retire, as well as steps to take with respect to those benefits, visit the Retiring from Prudential website at URL. 6 Table of Contents

7 RETIREMENT ACTION CHECKLIST Steps to Take Call to speak with a Retirement Counselor and determine your official retirement date. Notify your manager and Human Resources Consultant. Confirm the accuracy of your personal information on file in Personal Profile. Verify your paid time off (PTO) balance using Employee Self Service and discuss any discrepancies with your paymaster or manager. Review your Personalized Retirement Statement. Make key retirement decisions including decisions about your retirement plan, savings plan benefits and medical coverage at retirement. Details This is the first critical step to take. Once you ve reviewed your eligibility and determined that you are in fact ready to retire, this step makes it official. Inform your manager as soon as possible of your intent to retire and, if known, your last day in the office so that he/she can prepare for a smooth transition of your job responsibilities to someone else. This will help to ensure that Prudential may continue to be in contact with you through the process and as needed when you are a Prudential retiree. This step may affect your last day in the office and/or your retirement date. You should verify your PTO balance before discussing your retirement plans with your Retirement Counselor. For this step, your Retirement Counselor will send you a Personalized Retirement Statement via regular mail. Once you have it in hand, you will review it with your Retirement Counselor. Your Retirement Counselor will help you understand how your retirement benefits have been determined and discuss the key decisions you ll need to make prior to retirement. This should happen within 90 days of your retirement date. Your Retirement Counselor will help you understand some important considerations, but these decisions are up to you to make. You may want to consult a personal financial advisor. See more 7 Table of Contents

8 RETIREMENT ACTION CHECKLIST Steps to Take Complete forms and submit paperwork. Confirm your last day in the office with your manager and Human Resources Consultant. Submit any outstanding expenses. Return Company property including your corporate credit card. Details You ll work with your Retirement Counselor to take all of the necessary steps to ensure that your applicable retirement benefits begin when you retire. You will need to make sure that your manager and Human Resources Consultant are aware of your last day in the office and are prepared for any transition of work. Make sure you submit any outstanding expenses on your Company credit card and/or expense vouchers, if applicable, for reimbursement. Make arrangements with your manager to return any Company property, including the following items: Keys Company credit card ID cards Parking permits Laptop (desktop if you have a Company desktop at home) Other virtual workspace hardware (fax, printer, etc.) BlackBerry and/or other Company mobile devices Any other applicable Company property 8 Table of Contents

9 KEY DECISIONS As part of the Prudential retirement process, you ll work with your Retirement Counselor to make some important decisions about your retirement benefits. Please keep in mind that your Retirement Counselor can help by giving you a basic level of information about the different decisions you need to make, but he/she cannot give you advice. We suggest you consult with a personal financial advisor who can discuss all of the potential tax and other implications before you make some of these decisions. The bullet lists on the next two pages show the different decisions that Prudential employees will need to consider when they are going through the retirement process. Some of these decisions may or may not apply to you based on your eligibility for certain benefits and your age and years of service at the time you retire. Your Retirement Counselor will outline the specific decisions you need to make based on your personal situation. 9 Table of Contents

10 KEY DECISIONS Health Care Personal Protection Decisions Whether or not to elect COBRA medical, dental, vision, Employee Assistance Program (EAP) and Health Care Reimbursement Account (HCRA) continuation coverage. (COBRA is the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.) Whether or not to elect retiree medical, dental or vision coverage. Whether to convert your Basic Group Life Insurance coverage to an individual whole life policy or discontinue coverage. Whether to convert your Group Universal Life Insurance coverage to an individual whole life policy, continue your coverage through the portability feature or discontinue coverage. Whether to convert your Dependent Term Group Life Insurance coverage to an individual whole life policy or discontinue coverage. Whether or not to continue Europ Assistance USA Identity Theft Assistance Program coverage as a retiree. 10 Table of Contents

11 KEY DECISIONS Capital Accumulation Plan Decisions For your PESP account, whether you will: Leave your money in your PESP account, Roll over your account to another qualified plan or IRA (total or partial), Take a lump sum distribution (total or partial), Purchase an annuity under the plan, or Choose some combination of the above. For your Prudential Retirement Plan benefit, whether you will: Begin receiving your Prudential Retirement Plan benefit and, if so, what form of payment to elect. 11 Table of Contents

12 TIMELINE AND MILESTONES Here s a high-level summary of what you can expect and when: WITHIN 12 MONTHS OF RETIREMENT DAYS BEFORE RETIREMENT BEFORE LAST DAY OF WORK RETIREMENT DAY ONE* TWO WEEKS SIX MONTHS AFTER RETIREMENT 90 DAYS BEFORE TO SIX MONTHS AFTER: Check-ins with your Retirement Counselor as needed to ensure timely benefit decisions, benefit election processing, receipt of applicable materials and benefit commencements Call the Prudential Benefits Center and work with your Retirement Counselor to establish your retirement date and schedule your first appointment DAYS BEFORE Receive your Personalized Retirement Statement in the mail. Phone call with your Retirement Counselor, in which he/she walks you through your statement and answers any questions you have DAYS BEFORE Receive COBRA packet from Ceridian in the mail DAYS BEFORE Submit all expenses and return all Company property, including: keys, ID cards, parking permits, laptop/desktop, BlackBerry and/or other Company mobile devices, etc. Place order for retirement gift, if eligible. Retirement plan benefit commences. Timing will vary based on the arrangements you make with your Retirement Counselor. TWO WEEKS AFTER Receive Basic Group Life Insurance conversion notice. Receive new medical ID card(s) in the mail (if applicable). WITHIN ONE MONTH AFTER Complete Prudential Retirement Survey. Receive preliminary pension commencement package in the mail. *Actual retirement date and last day of work may vary based on PTO runout. 12 Table of Contents