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EX-99.4(AEE)
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dex994aee.txt
HIGHEST DAILY GRO II BENEFIT SCHEDULE (P-SCH-HD GRO-11/09)
Exhibit 4(aee)
[PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
751 BROAD STREET
NEWARK, NEW JERSEY]
[HIGHEST DAILY GUARANTEED RETURN OPTION II] BENEFIT
SCHEDULE SUPPLEMENT
ANNUITY NUMBER: [001-00001]
EFFECTIVE DATE: [Issue Date of the Rider]
DURATION OF A GUARANTEE PERIOD: [10 Years]
DOLLAR-FOR-DOLLAR PERCENTAGE: [0.0%]
CHARGE FOR THE RIDER: [The daily equivalent of an annual rate of [0.60%]
applied to the elected Sub-accounts and the Transfer Account]
TRANSFER ACCOUNT: [Collectively, one or more AST bond portfolio Sub-accounts.]
If a bond portfolio Sub-account is discontinued, we will substitute a successor
Sub-account, if there is one. Otherwise, we will substitute a comparable
Sub-account. We will obtain any required regulatory approvals prior to
substitution of the Sub-account.
BENCHMARK INDEX: [Barclays Capital Fixed Term Zero Coupon Swap Index.] If this
Benchmark Index is discontinued, we will substitute a successor benchmark
index, if there is one. Otherwise, we will substitute a comparable benchmark
index. We will obtain any required regulatory approvals prior to substitution
of the benchmark index.
BENCHMARK INDEX INTEREST RATE: [The interest rate that is set with reference
to the Benchmark Index.]
DISCOUNT RATE ADJUSTMENT: [2.5%]
DISCOUNT RATE MINIMUM: [
Month Minimum Month Minimum
----- ------- ----- -------
1 3.00% 13 2.00%
2 2.92% 14 1.92%
3 2.83% 15 1.83%
4 2.75% 16 1.75%
5 2.67% 17 1.67%
6 2.58% 18 1.58%
7 2.50% 19 1.50%
8 2.42% 20 1.42%
9 2.33% 21 1.33%
10 2.25% 22 1.25%
11 2.17% 23 1.17%
12 2.08% 24 1.08%
25+ 1.00%
]
P-SCH-HDGRO(11/09)NY 1
[HIGHEST DAILY GUARANTEED RETURN OPTION II] BENEFIT
SCHEDULE SUPPLEMENT (CONTINUED)
TRANSFER CALCULATION FORMULA
[The following are the Terms and Definitions referenced in the Transfer
Calculation Formula:
. AV is the current Account Value of the Annuity
. V\\V\\ is the current Account Value of the elected Sub-accounts of the
Annuity
. V\\F\\ is the current Account Value of the elected Fixed Rate Options of
the Annuity
. B is the total current value of the Transfer Account
. C\\l\\ is the lower target value; it is established on the Effective
Date and is not changed for the life of the guarantee
. C\\t\\ is the middle target value; it is established on the Effective
Date and is not changed for the life of the guarantee
. C\\u\\ is the upper target value; it is established on the Effective
Date and is not changed for the life of the guarantee
. T is the amount of a transfer into or out of the Transfer Account
For each Guarantee Amount:
. G\\i\\ is the Guarantee Amount
. N\\i\\ is the number of days until the end of the Guarantee Period
. d\\i\\ is the discount rate associated with the number of days until the
end of a Guarantee Period. The discount rate is determined by taking the
greater of the Benchmark Index Interest Rate less the Discount Rate
Adjustment, and the Discount Rate Minimum. The applicable term of the
Benchmark Index Interest Rate is the same as the number of days
remaining until the end of the Guarantee Period. If no Benchmark Index
Interest Rate is available for such term, the nearest available term
will be used. The Discount Rate Minimum is determined based on the
number of months since the Effective Date.
The formula, which is set on the Effective Date and is not changed while this
Rider is in effect, determines, on each Valuation Day, when a transfer is
required:
The formula begins by determining the value on that Valuation Day that, if
appreciated at the applicable discount rate, would equal the Guarantee Amount
at the end of the Guarantee Period. We call the greatest of these values the
"current liability (L)".
L = MAX (L\\i\\), where L\\i\\ = G\\i\\ / (1 + d\\i\\)/(N/\\i\\//365)/.
Next the formula calculates the following formula ratio (r):
r = (L - B) / (V\\V\\ + V\\F\\).
If the formula ratio exceeds an upper target value, then Account Value will be
transferred to the bond portfolio Sub-account associated with the current
liability subject to the 90% Cap Rule. If, at the time we make a transfer to
the bond portfolio Sub-account associated with the current liability, there is
Account Value allocated to a bond portfolio Sub-account not associated with the
current liability, we will transfer all assets from that bond portfolio
Sub-account to the bond portfolio Sub-account associated with the current
liability.
P-SCH-HDGRO(11/09)NY 2
[HIGHEST DAILY GUARANTEED RETURN OPTION II] BENEFIT
SCHEDULE SUPPLEMENT (CONTINUED)
TRANSFER CALCULATION FORMULA (Continued)
The formula will transfer assets into the Transfer Account if r > C\\u\\ and if
transfers have not been suspended due to the 90% Cap Rule. Assets in the
elected Sub-accounts and Fixed Rate Options, if applicable, are transferred to
the Transfer Account in accordance with the Transfer provisions of the Rider.
The transfer amount is calculated by the following formula:
T = {Min(MAX(0,(.90 * (V\\V\\ + V\\F\\ + B)) - B), [L - B - (V\\V\\ +
V\\F\\) * C\\t\\] / (1 - C\\t\\))}
If the formula ratio is less than a lower target value, and there are assets in
the Transfer Account, then the formula will transfer assets out of the Transfer
Account and into the elected Sub-accounts.
The formula will transfer assets out of the Transfer Account if r <
C\\l\\ and B > 0.
The transfer amount is calculated by the following formula:
T = {Min (B, - [L - B - (V\\V\\ + V\\F\\) * C\\t\\] / (1 - C\\t\\))}
If, following a transfer to the elected Sub-accounts, there are assets
remaining in a bond portfolio Sub-account not associated with the current
liability, we will transfer all assets from that bond portfolio Sub-account to
the bond portfolio Sub-account associated with the current liability.
90% Cap Rule: If, on any Valuation Day this Rider remains in effect, a
transfer into the Transfer Account occurs which results in 90% of the Account
Value being allocated to the Transfer Account, any transfers into the Transfer
Account will be suspended even if the formula would otherwise dictate that a
transfer into the Transfer Account should occur. Transfers out of the Transfer
Account and into the elected Sub-accounts will still be allowed. The suspension
will be lifted once a transfer out of the Transfer Account occurs. Due to the
performance of the Transfer Account and the elected Sub-Accounts, the Account
Value could be more than 90% invested in the Transfer Account.]
P-SCH-HDGRO(11/09)NY 3