How good is the Prudential Guaranteed Investment guarantee?

Last updated: 1/28/2013 11:02:03 AM

The funds in the WEA TSA Trust program and WEAC IRA Prudential Guaranteed Investment* are held by Prudential Retirement Insurance and Annuity Company.

The guaranteed fund invests in a broadly diversified fixed income portfolio designed for the conservative investor that provides an attractive rate of return.

The guarantee is on the participant’s principal and net credited interest. In other words, you will never receive less than what you have contributed and the interest credited on those contributions.

While there is no insurance like FDIC that covers your bank deposits, the guarantee is supported and backed by the strength and stability of Prudential Financial. Prudential is required to hold reserves equal to the assets in the Guaranteed Investment to ensure the safety of participant assets.

Prudential Retirement Insurance and Annuity Company has received financial strength rating of AA- (Very Strong) by Standard & Poor’s and A2 (Good) by Moody’s as of December 31, 2011. 

 

*Interest is compounded daily to produce the current annual yield prior to the deduction of administrative fees of the WEA TSA Trust and the WEAC IRA program. Principal and net credited interest are fully guaranteed by Prudential Retirement Insurance and Annuity Company (PRIAC). Such guarantees are based solely upon the financial strength and claims-paying ability of PRIAC.

The Prudential Guaranteed Investment is a group annuity product issued by PRIAC. Amounts contributed to the contract are deposited in PRIAC's general account. Payment obligations and the fulfillment of any guarantees specified in the group annuity contract are insurance claims supported by the full faith and credit of PRIAC. PRIAC periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract and subject to change.  Past interest rates are not indicative of future rates.

PRIAC is compensated in connection with this product by deducting an amount for investment expenses and risk from the investment experience of certain assets held in PRIAC's general account.  PRIAC uses a portion of its aggregate revenue to reimburse WEA TSA Trust and WEA Member Benefit Trust for record-keeping expenses incurred in connection with the WEA TSA Trust and WEAC IRA programs.

 

 

 

 

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