What is GIFT?

Guaranteed Income For Tomorrow, (GIFT)®, is a deferred income annuity designed to provide you with regular, guaranteed income that will start on a date you choose and continue for as long as you live. It can complement your overall retirement strategy and may help meet your future income needs.

How does GIFT work?

When you open a GIFT contract, you contribute from your bank account. You can also make individual lump-sum contributions. Each contribution buys a guaranteed income amount that will start on your Income Start Date (you choose this date when you enroll). Income payments will be paid on a regular basis (you choose the frequency) for as long as you live.

What are the fees?

There are no explicit fees or charges with GIFT; our costs are factored into the purchase rates used to calculate your guaranteed lifetime income. Some states impose a premium tax charge that is deducted from each contribution.

How do I determine if GIFT is right for me?

It’s up to you to decide whether GIFT is right for you. Here are some questions to think about:

• Do I understand how GIFT works? Will it help me meet my overall financial objectives?
• Am I taking full advantage of my tax-deferred opportunities, such as 401(k)s, 403(b)s and IRAs?
• Will I use GIFT for a long-term goal like retirement? If so, how could I achieve that goal if the income from GIFT isn’t as much as I expected it to be?
• Does GIFT offer me a guaranteed minimum income payment?
• Do I understand all of the taxes, fees, charges and adjustments? 
• Am I comfortable that I cannot receive a lump sum at any time and that I will only receive Annuity Income Payments after my Income Start Date?
• Do I understand if my beneficiaries will receive any payment from GIFT if I die?

What happens if I die?

As the GIFT annuity owner, you may name primary and contingent beneficiaries for your contract. If you name multiple beneficiaries, each will receive their allocated portion. If you don’t choose a beneficiary, then any death benefit would be paid to your estate. If you pass away:

• Before your Income Start Date:

  Your beneficiary(ies) would receive a single lump sum payment totaling the contributions you made, minus any applicable premium tax charges^*.
   

• On or after your Income Start Date:†

  If Annuity Income Payments you received were less than your total contributions then your beneficiary(ies) would continue to receive your Annuity Income Payments until those payments equal the contributions you made, minus any applicable premium tax charges^*.

^* Certain states impose a premium tax charge that is deducted from each contribution when it’s made.

† Assumes the owner and annuitant are the same person.

How do I view and manage GIFT?

Our secure website offers everything you need. You can:

• Start, stop or modify your contributions
• View account details, including the guaranteed lifetime income you’ve purchased to date
• View statements, other important documents and transaction history
• Update your address beneficiary information and more
• Access various educational tools designed to help you plan for guaranteed lifetime income

If you’d prefer to speak to someone, call our dedicated GIFT Service Team at 1-800-773-8137.

Can I cancel my GIFT contract?

You can revoke your contract only within a specified “free look” period based on your state’s requirements (generally ten calendar days), to receive a refund of your initial contribution(s). This period begins five calendar days after we receive your first contribution(s) to establish your contract. You cannot cancel your contract after the free look period. This free look period only applies to the period of time immediately after your contract is issued (there is no new free look period for any subsequent contributions).

Can Prudential terminate my GIFT contract?

If you do not contribute to your contract for at least two full years, and the total monthly Annuity Income Payment you have purchased so far is less than $20, we may terminate your contract and pay you a lump sum.

Who can purchase GIFT?

GIFT is available to US citizens between the ages of 18-83 years old. Joint ownership is not available at this time.

Which state’s laws govern my contract?

The state law where you reside when you purchase GIFT will govern your contract. This will not change even if you move.

Can I change the ownership of my contract after I open GIFT?

Ownership of the contract can change only in case of divorce and before income has started or if we are required to permit it based on your contract. The annuitant (the person whose life determines the Annuity Income Payments) cannot be changed after the contract is issued.

Is GIFT available where I live?

GIFT is currently available in every state except New York, Florida and Oregon. State availability is subject to change.

How do I make contributions?

You must use electronic funds transfer (EFT) for your first contribution. After this, you may contribute via EFT or paper check. Contributions must be after-tax. Pre-tax contributions are not allowed.

How much can I contribute to GIFT?

The minimum contribution amount is based on the Income Start Date you choose when you enroll. If your Income Start Date is more than 20 years from when you enroll in GIFT, you can open a GIFT contract for as little as $25 a week ($100 a month minimum). If your Income Start Date is 20 years or less from when you enroll in GIFT, you can start purchasing guaranteed lifetime income with as little as $50 a week ($200 a month minimum).

You can also establish your GIFT contract with a single lump-sum EFT contribution ($10,000 minimum). After your contract is open, you can make lump-sum contributions (either by EFT or paper check), subject to the $100 or $200 minimums.

You can make regular or lump-sum contributions beginning with your first one at issue and anytime up to 31 days before your Income Start Date. Whichever you choose, you can contribute up to $500,000 for the life of your GIFT contract; however, Prudential may limit, restrict, suspend or reject additional contributions on a nondiscriminatory basis, which could result in a lower total contribution amount.

We calculate the amount of guaranteed lifetime income when we receive and process your contribution. You can log in to prudential.com to see how your contribution has impacted your guaranteed lifetime income.

Can I change my contribution amount?

You can make contributions anytime up to a month (31 days) before your Income Start Date. You can also stop or change contributions anytime during this period.

You may also add Auto Increase at any time to help maximize your guaranteed lifetime income. With Auto Increase, your contributions will increase every year by the amount you choose, until you cancel it.

Can I fund my GIFT contract with money from another annuity or insurance policy?

No. GIFT is designed to complement your retirement investments, not replace them. You may fund your contract only from a bank account with after-tax dollars.
 

Can I withdraw money from GIFT before my Income Start Date?

No. To protect your guaranteed lifetime income and help keep you on track, GIFT has no account or cash surrender value, and you may not withdraw or take loans from your GIFT contract. The Annuity Income Payments beginning on your Income Start Date are the only distributions available to you from GIFT.
 

How is my guaranteed lifetime income determined?

Prudential calculates guaranteed lifetime income with each contribution you make, based on a purchase rate that factors in:

• Interest rates we set
• Your age on the date of the contribution
• Your gender
• Your Income Start Date
• Your income payment frequency

The increment of guaranteed lifetime income purchased with each contribution will change based on the purchase rate in effect at the time of each contribution, even if the contribution amount doesn’t change. The purchase rate is subject to a contractually guaranteed minimum.

Can I change my Income Start Date?

Your Income Start Date is the date you choose at enrollment when you want to begin receiving guaranteed lifetime income, subject to these rules:

• It must be at least 13 months after your first contribution.
• You can start receiving guaranteed lifetime income only from ages 59½ to 84.
• Your Income Start Date must be between the 1st and 28th of any month.

You will have one opportunity to move your Income Start Date after your contract is issued, subject to these rules and the rules listed above:

• You may move your Income Start Date ahead or back by as many as five years.
• You may make any change up to 31 calendar days before your Income Start Date.

Please note that any adjustment to your Income Start Date may affect your future annuity income payment amount.

How often will I receive my guaranteed lifetime income?

Once you reach your Income Start Date, we automatically distribute your Annuity Income Payments on a monthly basis; however, you can change the frequency to quarterly, semiannually or annually up to 31 days before your Income Start Date. Your income amount may be impacted by the frequency you choose.