AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 24, 2002
REGISTRATION NO. 333-______
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
---------------
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
(EXACT NAME OF REGISTRANT)
ARIZONA
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(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)
22-194455
(I.R.S. EMPLOYER IDENTIFICATION NUMBER)
C/O PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
213 WASHINGTON STREET
NEWARK, NEW JERSEY 07102-2992
(973) 802-7333
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(ADDRESS AND TELEPHONE NUMBER OF PRINCIPAL EXECUTIVE OFFICES)
THOMAS C. CASTANO
ASSISTANT SECRETARY
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
213 WASHINGTON STREET
NEWARK, NEW JERSEY 07102-2992
(973) 802-4708
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(NAME, ADDRESS, AND TELEPHONE NUMBER OF AGENT FOR SERVICE)
COPIES TO:
C. CHRISTOPHER SPRAGUE
VICE PRESIDENT, CORPORATE COUNSEL
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
213 WASHINGTON STREET
NEWARK, NEW JERSEY 07102-2992
================================================================================
Approximate date of commencement of proposed sale to the public--January 9, 2003
If any of the securities being registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box ........................[x]
CALCULATION OF REGISTRATION FEE
TITLE OF EACH AMOUNT PROPOSED PROPOSED AMOUNT OF
CLASS OF SECURITIES TO BE MAXIMUM OFFERING MAXIMUM AGGREGATE REGISTRATION
TO BE REGISTERED REGISTERED PRICE PER UNIT OFFERING PRICE FEE
----------------------- ----------------- ------------------ ----------------- ------------
Market-value adjusted
annuity contracts $200,000,000 $200,000,000 $18,400
- ----------
Prudential Investment Management Services LLC, the principal underwriter of
these contracts under a "best efforts" arrangement, will be reimbursed by Pruco
Life Insurance Company of New Jersey for its costs and expenses incurred in
connection with the sale of these contracts.
The risk factors section appears on page 6 of the prospectus.
STRATEGIC PARTNERS(SM)
HORIZON ANNUITY
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PROSPECTUS: JANUARY , 2003
THIS PROSPECTUS DESCRIBES A MARKET VALUE ADJUSTED INDIVIDUAL ANNUITY CONTRACT
OFFERED BY PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY (PRUCO LIFE OF NEW
JERSEY). PRUCO LIFE OF NEW JERSEY IS AN INDIRECT WHOLLY OWNED SUBSIDIARY OF THE
PRUDENTIAL INSURANCE COMPANY OF AMERICA. PRUCO LIFE OF NEW JERSEY IS LOCATED AT
213 WASHINGTON STREET, NEWARK, NJ 07102-2992, AND CAN BE CONTACTED BY CALLING
(973) 367-1730. PRUCO LIFE OF NEW JERSEY ADMINISTERS THE STRATEGIC PARTNERS
HORIZON ANNUITY CONTRACTS AT THE PRUDENTIAL ANNUITY SERVICE CENTER, P.O. BOX
7960, PHILADELPHIA, PA 19101. YOU CAN CONTACT THE PRUDENTIAL ANNUITY SERVICE
CENTER BY CALLING, TOLL-FREE, (888) PRU-2888.
PLEASE READ THIS PROSPECTUS
- ------------------------------------------------------------
Please read this prospectus before purchasing a Strategic Partners Horizon
Annuity contract and keep it for future reference.
THE SEC HAS NOT DETERMINED THAT THIS CONTRACT IS A GOOD INVESTMENT, NOR HAS THE
SEC DETERMINED THAT THIS PROSPECTUS IS COMPLETE OR ACCURATE. IT IS A CRIMINAL
OFFENSE TO STATE OTHERWISE. INVESTMENT IN A MARKET VALUE ADJUSTED ANNUITY
CONTRACT IS SUBJECT TO RISK, INCLUDING THE POSSIBLE LOSS OF YOUR MONEY. AN
INVESTMENT IN STRATEGIC PARTNERS HORIZON ANNUITY IS NOT A BANK DEPOSIT AND IS
NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY.
ORD01009
CONTENTS
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<Table>
PART I: STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS
------------------------------------------------------------
SUMMARY
------------------------------------------------------------
Glossary........................................... 4
Summary............................................ 6
Risk Factors....................................... 7
PART II: STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS
------------------------------------------------------------
Section 1: What is the Strategic Partners Horizon
Annuity?............................................... 10
Short Term Cancellation Right or "Free Look"....... 10
Section 2: What Guarantee Periods Can I Choose?......... 11
Guarantee Periods.................................. 11
Market Value Adjustment............................ 12
Section 3: What Kind of Payments Will I Receive During
the Income Phase? (Annuitization)...................... 13
Payment Provisions................................. 13
Option 1: Annuity Payments for a Fixed
Period........................................ 13
Option 2: Life Annuity with 120 Payments (10
Years)........................................ 13
Option 3: Other Annuity Options................ 13
Tax Considerations............................. 13
Section 4: What is the Death Benefit?................... 14
Beneficiary........................................ 14
Calculation of the Death Benefit................... 14
Joint Ownership Rules.............................. 14
Section 5: How Can I Purchase a Strategic Partners
Horizon Annuity Contract?.............................. 15
Purchase Payment................................... 15
Allocation of Purchase Payment..................... 15
Section 6: What are the Expenses Associated with the
Strategic Partners Horizon Annuity Contract?........... 16
Withdrawal Charge.................................. 16
Taxes Attributable to Premium...................... 16
Section 7: How Can I Access My Money?................... 18
Automated Withdrawals.............................. 18
Section 8: What are the Tax Considerations Associated
with the Strategic Partners Horizon Annuity
Contract?.............................................. 19
Contracts Owned by Individuals (Not Associated with
Tax Favored Retirement Plans)...................... 19
Contracts Held by Tax Favored Plans................ 20
Section 9: Other Information............................ 26
Pruco Life Insurance Company of New Jersey......... 26
Sale and Distribution of the Contract.............. 26
Assignment......................................... 27
Householding....................................... 27
Litigation......................................... 27
Market-Value Adjustment Formula.................... 29
IRA Disclosure Statement........................... 31
</Table>
2
PART I SUMMARY
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STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS
3
PART I
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SUMMARY
GLOSSARY
- --------------------------------------------------------------------------------
WE HAVE TRIED TO MAKE THIS PROSPECTUS AS EASY TO READ AND UNDERSTAND AS
POSSIBLE. BY THE NATURE OF THE CONTRACT, HOWEVER, CERTAIN TECHNICAL WORDS OR
TERMS ARE UNAVOIDABLE. WE HAVE IDENTIFIED THE FOLLOWING AS SOME OF THE KEY WORDS
OR TERMS. OTHER DEFINED TERMS ARE SET FORTH IN YOUR CONTRACT.
ACCUMULATION PHASE
The period that begins with the contract date (see below definition) and ends
when you start receiving income payments or earlier if the contract is
terminated through a full withdrawal or payment of a death benefit.
ADJUSTED CONTRACT VALUE
When you begin receiving income payments, the value of your contract minus any
charge we impose for premium taxes, adjusted for any market value adjustment.
ANNUITANT
The person whose life determines the amount of income payments that will be
paid. If the annuitant dies before the annuity date, the co-annuitant (if any)
becomes the annuitant if the contract's requirements for changing the annuity
date are met. If, upon the death of the annuitant, there is no surviving
co-annuitant, and the owner is not the annuitant, then the owner becomes the
annuitant.
ANNUITY DATE
The date when income payments are scheduled to begin.
BENEFICIARY
The person(s) or entity you have chosen to receive a death benefit.
CO-ANNUITANT
The person shown on the contract data pages who becomes the annuitant upon the
death of the annuitant before the annuity date. No co-annuitant may be
designated if the owner is a non-natural person.
CONTRACT DATE
The date we receive your purchase payment and all necessary paperwork in good
order at the Prudential Annuity Service Center. Contract anniversaries are
measured from the contract date. A contract year starts on the contract date or
on a contract anniversary.
CONTRACT OWNER, OWNER OR YOU
The person entitled to the ownership rights under the contract.
CONTRACT SURRENDER VALUE
This is the total value of your contract adjusted by any market-value
adjustment, minus any withdrawal charge(s) and any premium taxes.
CONTRACT VALUE
The total value of the amount in a contract allocated to a guarantee period as
of a particular date.
DEATH BENEFIT
If the sole owner or first to die of the joint owners dies, the designated
person(s) or the beneficiary will receive the contract value as the death
benefit. If the contract is owned by an entity (e.g. a corporation or trust),
rather than by an individual, then we will pay the death benefit upon the death
of the annuitant. See "What is the Death Benefit?" on page 14.
GUARANTEE PERIOD
A period of time during which your invested purchase payment earns interest at
the declared rate. We currently make available guarantee periods equal to any or
all of the following: 1 year (currently available only as a renewal option), 3
years, 5 years, 7 years, and 10 years. A guarantee period that does not exceed
five years always will be available.
INCOME OPTIONS
Options under the contract that define the frequency and duration of income
payments. In your contract, these are referred to as settlement or annuity
options.
INVESTED PURCHASE PAYMENT
Your purchase payment (which we define below) less any deduction we make for any
premium or other tax charge. In addition to the initial invested purchase
payment, we allow you to make additional purchase payments during the 30 days
preceding the end of a guarantee period.
JOINT OWNER
The person named as the joint owner, who shares ownership rights with the owner
as defined in the contract. Joint owners may be spouses, but are not required to
be spouses.
OWNER
The person or entity named on the contract data pages who has ownership rights
as defined under the contract provided that, if a joint owner is named, the
owner shares ownership rights with the joint owner. You may change the owner
subject to our underwriting rules. Any change of an owner will be effective on
the date the written request
4
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PART I
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SUMMARY
was signed, subject to our receipt of the request in good order at the
Prudential Annuity Service Center.
PRUDENTIAL ANNUITY SERVICE CENTER
For general correspondence: P.O. Box 7960, Philadelphia, PA, 19101. For express
overnight mail: 2101 Welsh Road, Dresher, PA 19025. The phone number is (888)
PRU-2888. Prudential's Web site is www.prudential.com.
PURCHASE PAYMENT
The amount of money you pay us to purchase the contract, as well as any
additional payment you make.
TAX DEFERRAL
This is a way to increase your assets without currently being taxed. You do not
pay taxes on your contract earnings until you take money out of your contract.
5
PART I
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SUMMARY
SUMMARY OF SECTIONS 1-9
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FOR A MORE COMPLETE DISCUSSION OF THE FOLLOWING TOPICS, SEE THE CORRESPONDING
SECTION IN THE PROSPECTUS.
SECTION 1
WHAT IS THE STRATEGIC PARTNERS HORIZON ANNUITY?
This market value adjusted annuity contract, offered by Pruco Life of New
Jersey, is a contract between you, as the owner, and us. The contract is
intended for retirement savings or other long-term investment purposes and
provides a death benefit and guaranteed income options.
While your money remains in the contract for the full guarantee period, your
principal amount is guaranteed and the interest amount that your money will earn
is guaranteed by us to always be at least 3%. Payments allocated to the contract
are held as a separate pool of assets, but the income, gains or losses
experienced by these assets are not directly credited or charged against the
contracts. As a result, the strength of our guarantees under the contract are
based on the overall financial strength of Pruco Life of New Jersey.
The contract, like all deferred annuity contracts, has two phases: the
accumulation phase and the income phase. During the accumulation phase, earnings
grow on a tax-deferred basis and are taxed as income when you make a withdrawal.
The income phase starts when you begin receiving regular payments from your
contract. The amount of money you are able to accumulate in your contract during
the accumulation phase will help determine the amount of the payments you will
receive during the income phase. Other factors will affect the amount of your
payments such as age, gender and the payout option you selected.
Free Look. If you change your mind about owning Strategic Partners Horizon
Annuity, you may cancel your contract within 10 days after receiving it. You can
request a refund by returning the contract either to the representative who sold
it to you, or to the Prudential Annuity Service Center at the address shown on
the first page of this prospectus. You will receive the amount your contract is
worth as of the day you submit your request.
We impose neither a withdrawal charge nor any market value adjustment if you
cancel your contract under this provision.
SECTION 2
WHAT GUARANTEE PERIODS CAN I CHOOSE?
You can allocate your initial purchase payment to one of the guarantee periods
available under the contract. We have the right under the contract to offer one
or more of the following guarantee periods: 1 year (currently available only as
a renewal option), 3 years, 5 years, 7 years, or 10 years, and we may offer
other guarantee periods in the future. At any time, we may offer any or all of
these guarantee periods. You may not allocate your purchase payment to more than
one guarantee period.
SECTION 3
WHAT KIND OF PAYMENTS WILL I RECEIVE DURING THE INCOME PHASE? (ANNUITIZATION)
If you want to receive regular income from your annuity, you can choose one of
several options, including guaranteed payments for the annuitant's lifetime.
Once you begin receiving regular payments, you cannot change your payment plan.
SECTION 4
WHAT IS THE DEATH BENEFIT?
If the sole owner or the first of the joint owners dies, the designated
person(s) or the beneficiary will receive the contract value as the death
benefit. If the contract is owned by an entity (e.g., a corporation or trust),
rather than by an individual, then we will pay the death benefit upon the death
of the annuitant.
SECTION 5
HOW CAN I PURCHASE A STRATEGIC PARTNERS HORIZON ANNUITY CONTRACT?
You can purchase this contract, under most circumstances, with a minimum
purchase payment of $5,000. We allow you to make additional purchase payments
only during the 30 days immediately preceding the end of a guarantee period.
Your representative can help you fill out the proper forms.
6
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PART I
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SUMMARY
SECTION 6
WHAT ARE THE EXPENSES ASSOCIATED WITH THE STRATEGIC PARTNERS HORIZON ANNUITY
CONTRACT?
During the accumulation phase, if you withdraw money, you may have to pay a
withdrawal charge on all or part of the withdrawal. The withdrawal charge that
we impose depends on the guarantee period from which you are withdrawing your
money. The withdrawal charge ranges from 0% to 7%. You also will be subject to a
market value adjustment if you make a withdrawal prior to the end of a guarantee
period.
SECTION 7
HOW CAN I ACCESS MY MONEY?
You may take money out at any time during the accumulation phase. If you do so,
however, you may be subject to income tax and, if you make a withdrawal prior to
age 59 1/2, an additional tax penalty as well. Each contract year after the
first, you may withdraw without charge, an amount equal to the interest you
earned during the previous contract year. Withdrawals greater than that amount
will be subject to a withdrawal charge. A market-value adjustment may also
apply.
SECTION 8
WHAT ARE THE TAX CONSIDERATIONS ASSOCIATED WITH THE STRATEGIC PARTNERS HORIZON
ANNUITY CONTRACT?
Your earnings are not taxed until withdrawn. If you take money out during the
accumulation phase, earnings are withdrawn first and are taxed as ordinary
income. If you are younger than age 59 1/2 when you take money out, you may be
charged a 10% federal tax penalty on the earnings in addition to ordinary
taxation. A portion of the payments you receive during the income phase is
considered partly a return of your original investment. As a result, that
portion of each payment is not taxable as income. Generally, all amounts
withdrawn from IRA contracts are fully taxable and subject to the 10% penalty if
withdrawn prior to age 59 1/2.
SECTION 9
OTHER INFORMATION
This contract is issued by Pruco Life of New Jersey, an indirect subsidiary of
The Prudential Insurance Company of America and sold by registered
representatives.
RISK FACTORS
There are various risks associated with the purchase of the Strategic Partners
Horizon Annuity that we summarize below.
ISSUER RISK. Your annuity is issued by Pruco Life of New Jersey, and thus is
backed by the financial strength of that company. If Pruco Life of New Jersey
were to experience significant financial adversity, it is possible that Pruco
Life of New Jersey's ability to pay interest and principal under the annuity
could be impaired.
RISKS RELATED TO CHANGING INTEREST RATES. You do not participate directly in
the investment experience of the bonds and other instruments that Pruco Life of
New Jersey holds to support the Strategic Partners Horizon annuities.
Nonetheless, the market value adjustment formula (which is detailed in the
appendix to this prospectus) reflects the effect that prevailing interest rates
have on those bonds and other instruments. If you need to withdraw your money
during a period in which prevailing interest rates have risen above their level
when you made your purchase, you will experience a "negative" market value
adjustment. When we impose this market value adjustment, it could result in the
loss of both the interest you have earned and a portion of your purchase
payments. Thus, before you commit to a particular guarantee period, you should
consider carefully whether you have the ability to remain in the contract
throughout the guarantee period. In addition, we cannot, of course, assure you
that the Strategic Partners Horizon Annuity will perform better than another
investment that you might have made.
RISKS RELATED TO THE WITHDRAWAL CHARGE. We impose withdrawal charges that
range as high as 7%. If you anticipate needing to withdraw your money prior to
the end of a guarantee period, you should be prepared to pay the withdrawal
charge that we will impose.
7
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8
PART II SECTIONS 1-9
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STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS
9
PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
1:
WHAT IS THE STRATEGIC PARTNERS HORIZON
ANNUITY?
- --------------------------------------------------------------------------------
THE STRATEGIC PARTNERS HORIZON ANNUITY IS A CONTRACT BETWEEN YOU, THE OWNER, AND
US, THE INSURANCE COMPANY, PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY (PRUCO
LIFE OF NEW JERSEY, WE OR US).
Under our contract or agreement, in exchange for your payment to us, we promise
to pay you a guaranteed income stream that can begin any time after the first
contract anniversary. Your annuity is in the accumulation phase until you decide
to begin receiving annuity payments. The date you begin receiving annuity
payments is the annuity date. On the annuity date, your contract switches to the
income phase.
This annuity contract benefits from tax deferral. Tax deferral means that you
are not taxed on earnings or appreciation on the assets in your contract until
you withdraw money from your contract.
Strategic Partners Horizon Annuity allows you to allocate a purchase payment
to one of several guarantee periods that we offer at the time. As the owner of
the contract, you have all of the decision-making rights under the contract. You
will also be the annuitant unless you designate someone else. The owner is the
person upon whose death during the accumulation phase, the death benefit
generally is payable. The annuitant is the person whose life is used to
determine the amount of annuity payments and how long the payments will
continue. On and after the annuity date, the annuitant may not be changed.
The beneficiary is the person(s) or entity designated to receive any death
benefit if the owner (or first to die of joint owners) dies during the
accumulation phase. You may change the beneficiary any time prior to the annuity
date by making a written request to us.
SHORT TERM CANCELLATION RIGHT OR "FREE LOOK"
If you change your mind about owning Strategic Partners Horizon Annuity, you may
cancel your contract within 10 days after receiving it. You can request a refund
by returning the contract either to the representative who sold it to you, or to
the Prudential Annuity Service Center at the address shown on the first page of
this prospectus. You will receive the amount your contract is worth as of the
day you submit your request.
We impose neither a withdrawal charge nor any market value adjustment if you
cancel your contract under this provision.
10
PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
2:
WHAT GUARANTEE PERIODS
CAN I CHOOSE?
- --------------------------------------------------------------------------------
THE CONTRACT GIVES YOU THE CHOICE OF ALLOCATING YOUR PURCHASE PAYMENT TO ONE OF
THE GUARANTEE PERIODS THAT WE ARE OFFERING AT THE TIME.
GUARANTEE PERIODS
Under each Strategic Partners Horizon Annuity contract, we have the right to
offer one or more of several guarantee periods. These guarantee periods are 1
year (currently available only as a renewal option), 3 years, 5 years, 7 years,
or 10 years in length. In the future, we may offer other guarantee periods on
substantially the same terms as described in this prospectus. We are not
obligated to offer more than one guarantee period at any time. However, we will
always make available a guarantee period not exceeding 5 years in length.
We will apply your purchase payment to the guarantee period you have chosen.
You must allocate all of your initial purchase payment to a single guarantee
period. We declare the interest rate for each available guarantee period
periodically, but we guarantee that we will declare no less than 3% interest
with respect to any guarantee period. You will earn interest on your invested
purchase payment at the rate that we have declared for the guarantee period you
have chosen.
In addition to the basic interest, we also may pay additional interest with
respect to guarantee periods other than the one year and three year periods. The
amount of the additional interest varies according to the amount of your
purchase payment. Specifically, we will pay additional interest equal to 0.50%
annually for a purchase payment of $25,000 to $74,999, and 1.00% annually for a
purchase payment of $75,000 or more.
If we grant additional interest to you, you will earn that interest only
during the first year of your contract (and during the first year of the initial
renewal guarantee period, other than the one and three year periods). We are not
obligated to offer this additional interest continuously, meaning that we
reserve the right to offer additional interest only during limited time periods
of our choosing. We also reserve the right to change the amount of the
additional interest.
We express interest rates as annual rates, although we credit interest within
each guarantee period on a daily basis. The daily interest that we credit is
equal to the pro rated portion of the interest that would be earned on an annual
basis. We credit interest from the business day on which your purchase payment
is received in good order at the Prudential Annuity Service Center until the
earliest to occur of any of the following events: (a) full surrender of the
Contract, (b) commencement of annuity payments or settlement, (c) cessation of
the guarantee period, or (d) death of the first to die of the owner and joint
owner (or annuitant, for entity-owned contracts).
During the 30 day period immediately preceding the end of a guarantee period,
we allow you to do any of the following, without the imposition of the
withdrawal charge or market value adjustment: (a) surrender the contract, in
whole or in part, (b) allocate the contract value to another guarantee period
available at that time (provided that the new guarantee period ends prior to the
contract anniversary next following the annuitant's 90th birthday (or ten years
after the contract date, if later) and that you reinvest at least $2,000), or
(c) apply the adjusted contract value to the annuity or settlement option of
your choice. If we do not receive instructions from you concerning the
disposition of the contract value in your maturing guarantee period, we will
reinvest the contract value in a guarantee period having the same duration as
the guarantee period that matured (provided that the new guarantee period ends
prior to the contract anniversary next following the annuitant's 90th birthday
(or ten years after the contract date, if later) and that you reinvest at least
$2,000). If any available new guarantee period would end on or after the
contract anniversary next following the annuitant's 90th birthday (or ten years
after the contract date, if later), or if the annuitant is 91 years old at the
end of the guarantee period, then we will make only the one year guarantee
period available as the renewal period. We will not impose a withdrawal charge
on amounts you withdraw from the one year guarantee
11
2:
WHAT GUARANTEE PERIODS CAN I CHOOSE? CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
period described in the immediately preceding sentence, although such a
withdrawal would be subject to a market value adjustment.
MARKET VALUE ADJUSTMENT
When you allocate a purchase payment to a guarantee period, we use that money to
buy and sell securities and other instruments to support our obligation to pay
interest. Generally, we buy bonds for this purpose. The duration of the bonds
and other instruments that we buy with respect to a particular guarantee period
is influenced significantly by the length of the guarantee period. Thus, for
example, we typically would acquire longer-duration bonds with respect to the 10
year guarantee period than we do for the 3 year guarantee period. The value of
these bonds is affected by changes in interest rates, among other factors. The
market value adjustment that we assess against your contract value if you
withdraw prior to the end of a guarantee period involves our attributing to you
a portion of our investment experience on these bonds and other instruments. For
example, if you make a full withdrawal when interest rates have risen since the
time of your investment, the bonds and other investments in the guarantee period
likely would have decreased in value, meaning that we would impose a "negative"
market value adjustment on you (i.e., one that results in a reduction of the
withdrawal proceeds that you receive). For a partial withdrawal, we would deduct
a negative market value adjustment from your remaining contract value.
Conversely, if interest rates have decreased, the market value adjustment would
be positive.
Other things you should know about the market value adjustment include the
following:
- - We determine the market value adjustment according to a mathematical formula,
which is set forth at the end of this prospectus under the heading
"Market-Value Adjustment Formula." In that section of the prospectus, we also
provide hypothetical examples of how the formula works.
- - A negative market value adjustment could cause you to lose not only the
interest you have earned but also a portion of your principal.
- - You may withdraw, without the imposition of any market value adjustment, an
amount equal to the interest earned under your contract during the
immediately preceding contract year.
- - In addition to imposing a market value adjustment on withdrawals, we also
will impose a market value adjustment on the contract value you apply to an
annuity or settlement option, except if you annuitize or settle during the 30
day period preceding the end of a guarantee period (See Section 3 for
details).
YOU SHOULD REALIZE, HOWEVER, THAT APART FROM THE MARKET VALUE ADJUSTMENT, THE
VALUE OF THE BENEFITS UNDER YOUR CONTRACT DOES NOT DEPEND ON THE INVESTMENT
PERFORMANCE OF THE BONDS AND OTHER INSTRUMENTS THAT WE HOLD WITH RESPECT TO YOUR
GUARANTEE PERIOD. APART FROM THE EFFECT OF ANY MARKET VALUE ADJUSTMENT, WE DO
NOT PASS THROUGH TO YOU THE GAINS OR LOSSES ON THE BONDS AND OTHER INSTRUMENTS
THAT WE HOLD IN CONNECTION WITH A GUARANTEE PERIOD.
12
PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
3:
WHAT KIND OF PAYMENTS WILL I RECEIVE DURING THE
INCOME PHASE? (ANNUITIZATION)
- --------------------------------------------------------------------------------
PAYMENT PROVISIONS
We can begin making annuity payments any time after the first contract
anniversary. Annuity payments must begin no later than the contract anniversary
next following the annuitant's 90th birthday (or ten years after the contract
date, if later). If you begin annuity payments or commence a settlement option
at a time other than the 30 day period prior to the end of a guarantee period,
then we will impose a market value adjustment.
We make the income plans described below available before the annuity date.
These plans are called annuity options. You must choose an annuity option at
least 30 days in advance of the annuity date. If you do not, we will select
Option 2 below on your behalf unless prohibited by applicable law. During the
income phase, all of the annuity options under this contract are fixed annuity
options. GENERALLY, ONCE THE ANNUITY PAYMENTS BEGIN, THE ANNUITY OPTION CANNOT
BE CHANGED AND YOU CANNOT MAKE WITHDRAWALS.
If the annuitant dies or assigns the contract, and the new annuitant is older
than the original annuitant, then the annuity date will be based on the new
annuitant's age. If the annuitant dies or assigns the contract, and the new
annuitant is younger than the original annuitant, then the annuity date will
remain unchanged. In no event, however, may an original or revised annuity date
be later than the contract anniversary next following the annuitant's 90th
birthday (or ten years after the contract date, if later).
OPTION 1
ANNUITY PAYMENTS FOR A FIXED PERIOD
Under this option, we will make equal payments for the period chosen, up to 25
years (but no less than 10 years). The annuity payments may be made monthly,
quarterly, semi-annually, or annually for as long as the annuitant is alive. If
the annuitant dies during the income phase, a lump sum payment generally will be
made to the beneficiary. The amount of the lump sum payment is determined by
calculating the present value of the unpaid future payments. This is done by
using the interest rate used to compute the actual payments. The interest rate
used will always be at least 3.0% a year.
OPTION 2
LIFE ANNUITY WITH 120 PAYMENTS (10 YEARS)
Under this option, we will make annuity payments monthly, quarterly,
semi-annually, or annually as long as the annuitant is alive. If the annuitant
dies before we have made 10 years worth of payments, we will pay the beneficiary
the present value of the remaining annuity payments in one lump sum unless we
were specifically instructed that the remaining annuity payments continue to be
paid to the beneficiary. The present value of the remaining annuity payments is
calculated by using the interest rate used to compute the amount of the original
payments. The interest rate used will always be at least 3.0% a year.
OPTION 3
OTHER ANNUITY OPTIONS
We currently offer a variety of other annuity options not described above. At
the time annuity payments are chosen, we may make available to you any of the
fixed annuity options that are offered at your annuity date.
TAX CONSIDERATIONS
If your contract is held under a tax-favored plan, as discussed on page 21, you
should consider the minimum distribution requirements mentioned on page 23 when
selecting your annuity option.
For certain contracts held in connection with "qualified" retirement plans
(such as a Section 401(k) plan), please note that if you are married at the time
your payments commence, you may be required by federal law to choose an income
option that provides at least a 50 percent joint and survivor annuity to your
spouse, unless your spouse waives that right. Similarly, if you are married at
the time of your death, federal law may require all or a portion of the death
benefit to be paid to your spouse, even if you designated someone else as your
beneficiary. For more information, consult the terms of your retirement
arrangement.
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STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
4:
WHAT IS THE
DEATH BENEFIT?
- --------------------------------------------------------------------------------
THE DEATH BENEFIT PAYS THE VALUE OF THE CONTRACT TO THE BENEFICIARY.
BENEFICIARY
The beneficiary is the person(s) or entity you name to receive any death
benefit. The beneficiary is named at the time the contract is issued, unless you
change it at a later date. Unless an irrevocable beneficiary has been named, you
can change the beneficiary at any time before the first to die of the owner or
joint owner dies.
CALCULATION OF THE DEATH BENEFIT
If the owner (or first to die of the owner and joint owner) dies during the
accumulation phase, we will, upon receiving appropriate proof of death and any
other needed documentation ("due proof of death"), pay a death benefit to the
beneficiary designated by the contract owner. If the contract is owned by an
entity (e.g., a corporation or trust), rather than by an individual, then we
will pay the death benefit upon the death of the annuitant. We require due proof
of death to be submitted promptly. The beneficiary will receive a death benefit
equal to the contract value (less any applicable premium tax) as of the date
that due proof of death is received in good order at the Prudential Annuity
Service Center.
Instead of asking us to pay a death benefit, the surviving spouse may opt to
continue the contract, as discussed below. Generally, we impose no withdrawal
charge or market value adjustment when we pay the death benefit.
JOINT OWNERSHIP RULES
If the contract has an owner and a joint owner and they are spouses, then
upon the first to die of the owner and joint owner, the surviving spouse has the
choice of the following:
- - The contract can continue, with the surviving spouse as the sole owner of the
contract. In this case, the contract held by the surviving spouse will
continue to be subject to the withdrawal charge and market value adjustment;
or
- - The surviving spouse can receive the death benefit and the contract will end.
If the surviving spouse wishes to receive the death benefit, he or she must
make that choice within the first 60 days following our receipt of due proof
of death. Otherwise, the contract will continue with the surviving spouse as
the sole owner.
If the contract has an owner and a joint owner, and they are not spouses, the
contract will not continue. Instead, the beneficiary will receive the death
benefit.
The payout options are:
Choice 1. Lump sum.
Choice 2. Payment of the entire death benefit within 5 years of the date of
death of the first to die. Under this choice, we will impose a
market value adjustment upon any withdrawal made during the 5 year
period (unless the withdrawal is made during the 30 day period
immediately preceding the end of a guarantee period).
Choice 3. Payment under an annuity or settlement option over the lifetime of
the beneficiary or over a period not extending beyond the life
expectancy of the beneficiary with distribution beginning within
one year of the date of death of the first to die.
This contract is subject to special tax rules that govern the required
distributions upon the death of the owner or joint owner. See "What are the Tax
Considerations Associated with the Strategic Partners Horizon Annuity Contract?"
section beginning on page 19.
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STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
5:
HOW CAN I PURCHASE A STRATEGIC PARTNERS HORIZON
ANNUITY CONTRACT?
- --------------------------------------------------------------------------------
PURCHASE PAYMENT
A purchase payment is the amount of money you give us to purchase the contract.
The minimum initial purchase payment is $5,000. You must get our prior approval
for any purchase payment over $5 million. You can allocate subsequent purchase
payments to a guarantee period only during the 30 day period immediately
preceding the end of a guarantee period, provided that any such purchase payment
is at least $1,000.
Generally, your initial purchase payment consists of a single sum. However,
with respect to an exchange or roll-over, your purchase payment can consist of
multiple sums that you identify at the time of application. With respect to the
latter:
- - we will aggregate each sum for purposes of computing the amount of any
additional interest that we pay on each sum; and
- - each sum will earn interest only from the business day on which it is
received in good order at the Prudential Annuity Service Center until the end
of the guarantee period.
We will sell you a contract only if the eldest of the owner, any joint owner,
annuitant, and any co-annuitant is 85 or younger on the date that the
application is signed (age 69 or younger, for IRAs).
ALLOCATION OF PURCHASE PAYMENT
When you purchase a contract, we will allocate your invested purchase payment to
the guarantee period of your choosing, provided that we are offering that
guarantee period at the time. You must allocate all of your initial purchase
payment to a single guarantee period. Likewise, any subsequent purchase payment
you make during the 30 day period immediately preceding the end of a guarantee
period will be consolidated with your existing contract value, and the total
will be allocated to a single guarantee period of your choosing.
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6:
WHAT ARE THE EXPENSES ASSOCIATED WITH THE STRATEGIC PARTNERS
HORIZON ANNUITY CONTRACT?
- --------------------------------------------------------------------------------
THERE ARE CHARGES ASSOCIATED WITH THE CONTRACT THAT MAY REDUCE THE RETURN ON
YOUR INVESTMENT. THESE CHARGES ARE DESCRIBED BELOW.
WITHDRAWAL CHARGE
The withdrawal charge is for the payment of the expenses involved in selling and
distributing the contracts, including sales commissions, printing of
prospectuses, sales administration, preparation of sales literature and other
promotional activities.
You may surrender your contract in whole or in part while the guarantee
period remains in effect. If you do so, however, you will be subject to (a) a
possible withdrawal charge, (b) a market value adjustment (which we discussed in
Section 2 above) and (c) possible tax penalties. After the first contract year,
you may withdraw, without the imposition of any withdrawal charge or market
value adjustment, an amount equal to the interest earned under your contract
during the immediately preceding contract year. When we calculate the withdrawal
charge and market value adjustment, we first take into account any available
charge-free amount. We impose a withdrawal charge and market value adjustment
only after that amount has been exhausted. In addition, we do not impose either
a withdrawal charge or a market value adjustment on amounts you withdraw to
satisfy Internal Revenue Service minimum distribution requirements.
If you make a full withdrawal, we will deduct the withdrawal charge from the
proceeds that we pay to you. If you make a partial withdrawal, we will deduct
the withdrawal charge from the contract value remaining in the guarantee period.
We calculate the withdrawal charge after we have given effect to any market
value adjustment.
The withdrawal charge that we impose is equal to a specified percentage of
the contract value withdrawn that is in excess of the charge-free amount
described above. With respect to the initial guarantee period, the withdrawal
charge is based on the number of contract anniversaries that have elapsed since
the contract date. Withdrawal charges also are imposed during your first,
renewal guarantee period, as discussed below. No withdrawal charges apply to any
guarantee period that you choose subsequent to your first, renewal guarantee
period. Moreover, we impose no withdrawal charge on withdrawals from any one
year guarantee period. The withdrawal charge for the initial guarantee period is
equal to the following:
<Table>
<Caption>
NUMBER OF CONTRACT ANNIVERSARIES SINCE
CONTRACT DATE WITHDRAWAL CHARGE
- -------------------------------------- -----------------
0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 0%
</Table>
The withdrawal charge during the first year of the first renewal guarantee
period is equal to the lesser of 5%, or 1% times the number of years in the
renewal guarantee period, and the charge decreases by 1% per year thereafter.
The withdrawal charge schedule for those aged 90 or older differs slightly. Some
or all of the guarantee periods that we offer at any given time will be shorter
than the time periods indicated immediately above. As such, the length of the
guarantee period that you have selected, in and of itself, may prevent you from
taking advantage of the decreasing withdrawal charges depicted above. For
example, if you choose a three year guarantee period, you would not be able to
take advantage of the lower withdrawal charges that would have been available in
subsequent contract years. If a withdrawal is effective on the day before a
contract anniversary, the withdrawal charge percentage will be that as of the
next following contract anniversary.
TAXES ATTRIBUTABLE TO PREMIUM
There may be premium based taxes applicable to your purchase payment. We are
responsible for the payment of these taxes and may make a deduction from the
value of the contract to pay some or all of these taxes.
16
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
Some of these taxes may be due when the contract is issued, others may be due
when the annuity payments begin. It is our current practice not to deduct a
charge for state premium taxes until annuity payments begin. In the states that
impose a premium tax, the current rates range up to 3.5%. New York, however,
does not currently impose a charge for premium taxes. It is also our current
practice not to deduct a charge for the federal deferred acquisition costs paid
by us that are based on premium received. However, we reserve the right to
charge the contract owner in the future for any such deferred acquisition costs
and any federal, state or local income, excise, business or any other type of
tax measured by the amount of premium received by us.
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
7:
HOW CAN I ACCESS
MY MONEY?
- --------------------------------------------------------------------------------
You can take money out at any time during the accumulation phase. If you do so,
however, you may be subject to income tax and, if the withdrawal is prior to
your attaining age 59 1/2, an additional tax penalty. You will need our consent
to make a partial withdrawal if the requested withdrawal is less than $250.
During the accumulation phase, we generally have the right to terminate your
contract and pay you the contract value if the current contract value is less
than $2,000 and certain other conditions apply.
INCOME TAXES, TAX PENALTIES, AND CERTAIN RESTRICTIONS MAY APPLY TO ANY
WITHDRAWAL YOU MAKE. FOR A MORE COMPLETE EXPLANATION, SEE SECTION 8 OF THIS
PROSPECTUS.
AUTOMATED WITHDRAWALS
We offer an automated withdrawal feature. This feature enables you to receive
periodic withdrawals in monthly, quarterly, semiannual, or annual intervals. We
will process your withdrawal at the end of the business day at the intervals you
specify. We will continue at these intervals until you tell us otherwise. We
reserve the right to cease paying automated withdrawals if paying any such
withdrawal would cause the contract value to be less than $2,000.
The minimum automated withdrawal amount you can make is $100. Withdrawal
charges, and a market value adjustment, may apply to any automated withdrawal
you make.
INCOME TAXES, TAX PENALTIES, AND CERTAIN RESTRICTIONS MAY APPLY TO AUTOMATED
WITHDRAWALS. FOR A MORE COMPLETE DISCUSSION, SEE SECTION 8 OF THIS PROSPECTUS.
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STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
8:
WHAT ARE THE TAX CONSIDERATIONS ASSOCIATED WITH THE STRATEGIC PARTNERS
HORIZON ANNUITY CONTRACT?
- --------------------------------------------------------------------------------
The tax considerations associated with the Strategic Partners Horizon Annuity
contract vary depending on whether the contract is (i) owned by an individual
and not associated with a tax-favored retirement plan, or (ii) held under a
tax-favored retirement plan. We discuss the tax considerations for these
categories of contracts below. The discussion is general in nature and describes
only federal income tax law (not state or other tax laws). It is based on
current law and interpretations, which may change. It is not intended as tax
advice. A tax adviser should be consulted for complete information and advice.
CONTRACTS OWNED BY INDIVIDUALS (NOT ASSOCIATED WITH TAX FAVORED RETIREMENT
PLANS)
TAXES PAYABLE BY YOU
We believe the contract is an annuity contract for tax purposes. Accordingly, as
a general rule, you should not pay any tax until you receive money under the
contract.
Generally, annuity contracts issued by the same company (and affiliates) to
you during the same calendar year must be treated as one annuity contract for
purposes of determining the amount subject to tax under the rules described
below.
TAXES ON WITHDRAWALS AND SURRENDER
If you make a withdrawal from your contract or surrender it before annuity
payments begin, the amount you receive will be taxed as ordinary income, rather
than as return of purchase payments, until all gain has been withdrawn. You will
generally be taxed on any withdrawal from a contract while you are alive even if
the withdrawal is paid to someone else.
If you assign or pledge all or part of your contract as collateral for a
loan, the part assigned will be treated as a withdrawal. Also, if you elect an
interest payment option, you will be treated, for tax purposes, as surrendering
your contract.
If you transfer your contract for less than full consideration, such as by
gift, you will trigger tax on the gain in the contract. This rule does not apply
if you transfer the contract to your spouse or under most circumstances if you
transfer the contract incident to divorce.
TAXES ON ANNUITY PAYMENTS
A portion of each annuity payment you receive will be treated as a partial
return of your purchase payments and will not be taxed. The remaining portion
will be taxed as ordinary income. Generally, the nontaxable portion is
determined by multiplying the annuity payment you receive by a fraction, the
numerator of which is your purchase payments (less any amounts previously
received tax-free) and the denominator of which is the total expected payments
under the contract.
After the full amount of your purchase payments have been recovered tax-free,
the full amount of the annuity payments will be taxable. If annuity payments
stop due to the death of the annuitant before the full amount of your purchase
payments have been recovered, a tax deduction may be allowed for the unrecovered
amount.
TAX PENALTY ON WITHDRAWALS AND ANNUITY PAYMENTS
Any taxable amount you receive under your contract may be subject to a 10
percent tax penalty. Amounts are not subject to this tax penalty if:
- - the amount is paid on or after you reach age 59 1/2 or die;
- - the amount received is attributable to your becoming disabled;
- - the amount paid or received is in the form of level annuity payments not less
frequently than annually under a lifetime annuity; and
- - the amount received is paid under an immediate annuity contract (in which
annuity payments begin within one year of purchase).
If you modify the lifetime annuity payment stream (other than as a result of
death or disability) before you reach age 59 1/2 (or before the end of the five
year period beginning with the first payment and ending after you reach age
59 1/2), your tax for the year of modification will be increased by the penalty
tax that
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8:
TAX CONSIDERATIONS ASSOCIATED WITH THE STRATEGIC PARTNERS HORIZON ANNUITY
CONTRACT CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
would have been imposed without the exception, plus interest for the deferral.
TAXES PAYABLE BY BENEFICIARIES
The death benefit is subject to income tax to the extent the distribution
exceeds the adjusted basis in the contract and the full value of the death
benefit is included in the owner's estate.
Generally, the same tax rules apply to amounts received by your beneficiary
as those set forth above with respect to you. The election of an annuity payment
option instead of a lump sum death benefit may defer taxes. Certain minimum
distribution requirements apply upon your death, as discussed further below.
REPORTING AND WITHHOLDING ON DISTRIBUTIONS
Taxable amounts distributed from your annuity contract are subject to federal
and state income tax reporting and withholding. In general, we will withhold
federal income tax from the taxable portion of such distribution based on the
type of distribution. In the case of an annuity or similar periodic payment, we
will withhold as if you are a married individual with 3 exemptions unless you
designate a different withholding status. In the case of all other
distributions, we will withhold at a 10% rate. You may generally elect not to
have tax withheld from your payments. An election out of withholding must be
made on forms that we provide.
State income tax withholding rules vary and we will withhold based on the
rules of your State of residence. Special tax rules apply to withholding for
nonresident aliens, and we generally withhold income tax for nonresident aliens
at a 30% rate. A different withholding rate may be applicable to a nonresident
alien based on the terms of an existing income tax treaty between the United
States and the nonresident alien's country.
Regardless of the amount withheld by us, you are liable for payment of
federal and state income tax on the taxable portion of annuity distributions.
You should consult with your tax advisor regarding the payment of the correct
amount of these income taxes and potential liability if you fail to pay such
taxes.
ANNUITY QUALIFICATION
REQUIRED DISTRIBUTIONS UPON YOUR DEATH -- Upon your death (or the death of a
joint owner, if earlier), certain distributions must be made under the contract.
The required distributions depend on whether you die on or before you start
taking annuity payments under the contract or after you start taking annuity
payments under the contract.
If you die on or after the annuity date, the remaining portion of the
interest in the contract must be distributed at least as rapidly as under the
method of distribution being used as of the date of death.
If you die before the annuity date, the entire interest in the contract must
be distributed within 5 years after the date of death. However, if an annuity
payment option is selected by your designated beneficiary and if annuity
payments begin within 1 year of your death, the value of the contract may be
distributed over the beneficiary's life or a period not exceeding the
beneficiary's life expectancy. Your designated beneficiary is the person to whom
benefit rights under the contract pass by reason of death, and must be a natural
person in order to elect an annuity payment option based on life expectancy or a
period exceeding five years.
If any portion of the contract is payable to (or for the benefit of) your
surviving spouse, such portion of the contract may be continued with your spouse
as the owner.
CHANGES IN THE CONTRACT -- We reserve the right to make any changes we deem
necessary to assure that the contract qualifies as an annuity contract for tax
purposes. Any such changes will apply to all contractowners and you will be
given notice to the extent feasible under the circumstances.
ADDITIONAL TAX CONSIDERATIONS
For additional information about the requirements of federal tax law applicable
to tax favored plans, see the "IRA Disclosure Statement" on page 31.
CONTRACTS HELD BY TAX FAVORED PLANS
Currently, the contract may be purchased for use in connection with individual
retirement accounts and
20
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
annuities ("IRAs") which are subject to Sections 408(a), 408(b) and 408A of the
Internal Revenue Code of 1986, as amended (Code). At some future time we may
allow the contract to be purchased in connection with other retirement
arrangements which are also entitled to favorable federal income tax treatment
("tax favored plans"). These other tax favored plans include:
- - Simplified employee pension plans ("SEPs") under Section 408(k) of the Code;
- - Saving incentive match plans for employees-IRAs ("SIMPLE-IRAs") under Section
408(p) of the Code; and
- - Tax-deferred annuities ("TDAs") under Section 403(b) of the Code.
This description assumes that (i) we will be offering this to both IRA and
non-IRA tax favored plans, and (ii) you have satisfied the requirements for
eligibility for these products.
YOU SHOULD BE AWARE THAT TAX FAVORED PLANS SUCH AS IRAS GENERALLY PROVIDE TAX
DEFERRAL REGARDLESS OF WHETHER THEY INVEST IN ANNUITY CONTRACTS. THIS MEANS THAT
WHEN A TAX FAVORED PLAN INVESTS IN AN ANNUITY CONTRACT, IT GENERALLY DOES NOT
RESULT IN ANY ADDITIONAL TAX DEFERRAL BENEFITS.
TYPES OF TAX FAVORED PLANS
IRAs If you buy a contract for use as an IRA, we will provide you a copy of
the prospectus and the contract. The "IRA Disclosure Statement" on page 31
contains information about eligibility, contribution limits, tax particulars and
other IRA information. In addition to this information (some of which is
summarized below), the IRS requires that you have a "free look" after making an
initial contribution to the contract. During this time, you can cancel the
contract by notifying us in writing, and we will refund all of the purchase
payments under the contract (or, if greater, the amount credited under the
contract, calculated as of the date that we receive this cancellation notice).
Contributions Limits/Rollovers: Because of the way the contract is designed,
you may only purchase a contract for an IRA in connection with a "rollover" of
amounts from a qualified retirement plan or transfer from another IRA. The
minimum payment under the contract ($5,000) is greater than the maximum amount
of the annual contribution currently allowed by law for an IRA. For 2002 to
2004, the IRA contribution limit is $3,000; increasing for 2005 to 2007, to
$4,000; and for 2008, $5,000. After 2008 the contribution amount will be indexed
for inflation. The tax law also provides for a catch-up provision for
individuals who are age 50 and above. These taxpayers will be permitted to
contribute an additional $500 in years 2002 to 2005 and an additional $1,000 in
2006 and years thereafter). The "rollover" rules under the Code are fairly
technical; however, an individual (or his or her surviving spouse) may generally
"roll over" certain distributions from tax favored retirement plans (either
directly or within 60 days from the date of these distributions) if he or she
meets the requirements for distribution. Once you buy the contract, you can make
regular IRA contributions under the contract (to the extent permitted by law).
However, if you make such regular IRA contributions, you should note that you
will not be able to treat the contract as a "conduit IRA," which means that you
will not retain possible favorable tax treatment if you subsequently "roll over"
the contract funds originally derived from a qualified retirement plan or TDA
into another Section 401(a) plan or TDA.
Required Provisions: Contracts that are IRAs (or endorsements that are part
of the contract) must contain certain provisions:
- - You, as owner of the contract, must be the "annuitant" under the contract
(except in certain cases involving the division of property under a decree of
divorce);
- - Your rights as owner are non-forfeitable;
- - You cannot sell, assign or pledge the contract, other than to Pruco Life of
New Jersey;
- - The annual premium you pay cannot be greater than the maximum amount allowed
by law, including catch-up contributions if applicable (which does not
include any rollover amounts);
- - The date on which annuity payments must begin cannot be later than the April
1st of the calendar year after the calendar year you turn age 70 1/2; and
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8:
TAX CONSIDERATIONS ASSOCIATED WITH THE STRATEGIC PARTNERS HORIZON ANNUITY
CONTRACT CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
- - Death and annuity payments must meet "minimum distribution requirements"
(described below).
Usually, the full amount of any distribution from an IRA (including a
distribution from this contract) which is not a rollover is taxable. As taxable
income, these distributions are subject to the general tax withholding rules
described earlier. In addition to this normal tax liability, you may also be
liable for the following, depending on your actions:
- - A 10% "early distribution penalty" (described below);
- - Liability for "prohibited transactions" if you, for example, borrow against
the value of an IRA; or
- - Failure to take a minimum distribution (also generally described below).
SEPs SEPs are a variation on a standard IRA, and contracts issued to a SEP
must satisfy the same general requirements described under IRAs (above). There
are, however, some differences:
- - If you participate in a SEP, you generally do not include in income any
employer contributions made to the SEP on your behalf up to the lesser of (a)
$40,000 in 2002 or (b) 25% of the employee's earned income (not including the
employer contribution amount as "earned income" for these purposes). However,
for these purposes, compensation in excess of certain limits established by
the IRS will not be considered. In 2002, this limit is $200,000.
- - SEPs must satisfy certain participation and nondiscrimination requirements
not generally applicable to IRAs; and
- - Some SEPs for small employers permit salary deferrals up to $11,000 in 2002
with the employer making these contributions to the SEP. However, no new
"salary reduction" or "SAR-SEPs" can be established after 1996. Individuals
participating in a SARSEP who are age 50 or above by the end of the year will
be permitted to contribute an additional $1,000 in 2002, increasing in $1,000
increments per year until reaching $5,000 in 2006. Thereafter the amount is
indexed for inflation.
You will also be provided the same information, and have the same "free look"
period, as you would have if you were purchasing the contract for a standard
IRA.
SIMPLE-IRAs SIMPLE-IRAs are another variation on the standard IRA, available
to small employers (under 100 employees, on a "controlled group" basis) that do
not offer other tax favored plans. SIMPLE-IRAs are also subject to the same
basic IRA requirements with the following exceptions:
- - Participants in a SIMPLE-IRA may contribute up to $7,000 in 2002, as opposed
to the usual IRA contribution limit, and employer contributions may also be
provided as a match (up to 3% of your compensation); and
- - Beginning in 2002, individuals age 50 or above by the end of the year will be
permitted to contribute an additional $500 in 2002, increasing in $500
increments per year until reaching $2,500 in 2006. Thereafter the amount is
indexed for inflation.
- - SIMPLE-IRAs are not subject to the SEP nondiscrimination rules.
ROTH IRAs Congress amended the Code in 1997 to add a new Section 408A,
creating the "Roth IRA" as a new type of individual retirement plan. Like
standard IRAs, income within a Roth IRA accumulates tax-deferred, and
contributions are subject to specific limits. Roth IRAs have, however, the
following differences:
- - Contributions to a Roth IRA cannot be deducted from your gross income;
- - "Qualified distributions" (generally, held for 5 tax years and payable on
account of death, disability, attainment of age 59 1/2, or first
time-homebuyer) from Roth IRAs are excludable from your gross income; and
- - If eligible, you may make contributions to a Roth IRA after attaining age
70 1/2, and distributions are not required to begin upon attaining such age
or at any time thereafter.
The annual contribution allowed by law for Roth IRAs increases in the same
manner as the increases for traditional IRAs as described on page 21). The Code
permits persons who meet certain income limitations
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
(generally, adjusted gross income under $100,000), and who receive certain
qualifying distributions from such non-Roth IRAs, to directly rollover or make,
within 60 days, a "rollover" of all or any part of the amount of such
distribution to a Roth IRA which they establish. This conversion triggers
current taxation (but is not subject to a 10% early distribution penalty). Once
the contract has been purchased, regular Roth IRA contributions will be accepted
to the extent permitted by law.
TDAs You may own TDAs generally if you are either an employer or employee of
a tax-exempt organization (as defined under Code Section 501(c)(3)) or a public
educational organization. You may make contributions to a TDA so long as the
employee's rights to the annuity are nonforfeitable. Contributions to a TDA, and
any earnings, are not taxable until distribution. You may also make
contributions to a TDA under a salary reduction agreement, generally up to a
maximum of $11,000 in 2002. Individuals participating in a TDA who are age 50 or
above by the end of the year will be permitted to contribute an additional
$1,000 in 2002, increasing in $1,000 increments per year until reaching $5,000
in 2006. Thereafter the amount is indexed for inflation. Further, you may roll
over TDA amounts to another TDA or an IRA. Beginning in 2002, TDA amounts may
also be rolled over to a qualified retirement plan, a SEP and a 457 government
plan.
A contract may only qualify as a TDA if distributions (other than
"grandfathered" amounts held as of December 31, 1988) may be made only on
account of:
- - Your attainment of age 59 1/2;
- - Your severance of employment;
- - Your death;
- - Your total and permanent disability; OR
- - Hardship (under limited circumstances, and only related to salary deferrals
and any earnings attributable to these amounts).
In any event, you must begin receiving distributions from your TDA by April 1st
of the calendar year after the calendar year you turn age 70 1/2 or retire,
whichever is later.
These distribution limits do not apply either to transfers or exchanges of
investments under the contract, or to any "direct transfer" of your interest in
the contract to another TDA or to a mutual fund "custodial account" described
under Code Section 403(b)(7).
Employer contributions to TDAs are subject to the same general contribution,
nondiscrimination, and minimum participation rules applicable to "qualified"
retirement plans.
MINIMUM DISTRIBUTION REQUIREMENTS AND PAYMENT OPTION
If you hold the contract under an IRA (or other tax-favored plan), IRS minimum
distribution requirements must be satisfied. This means that payments must start
by April 1 of the year after the year you reach age 70 1/2 and must be made for
each year thereafter. The amount of the payment must at least equal the minimum
required under the IRS rules. Several choices are available for calculating the
minimum amount, permitted under IRS regulations released in April 2002. More
information on the mechanics of this calculation is available on request. Please
contact us a reasonable time before the IRS deadline so that a timely
distribution is made. Please note that there is a 50% IRS penalty tax on the
amount of any minimum distribution not made in a timely manner.
You can use the Minimum Distribution option to satisfy the IRS minimum
distribution requirements for this contract without either beginning annuity
payments or surrendering the contract. We will send you a check for this minimum
distribution amount, less any other partial withdrawals that you made during the
year. Please note that the Minimum Distribution option may need to be modified
to satisfy recently announced changes in IRS rules.
PENALTY FOR EARLY WITHDRAWALS
You may owe a 10% tax penalty on the taxable part of distributions received from
an IRA, SEP, SIMPLE-IRA (which may increase to 25%), Roth IRA, TDA or qualified
retirement plan before you attain age 59 1/2.
23
8:
TAX CONSIDERATIONS ASSOCIATED WITH THE STRATEGIC PARTNERS HORIZON ANNUITY
CONTRACT CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
There are only limited exceptions to this tax, and you should consult your tax
adviser for further details.
WITHHOLDING
Unless a distribution is an eligible rollover distribution that is "directly"
rolled over into another qualified plan, IRA (including the IRA variations
described above) SEP, 457 government plan, or TDA, we will withhold at the rate
of 20%. This 20% withholding does not apply to distributions from IRAs and Roth
IRAs. For all other distributions, unless you elect otherwise, we will withhold
federal income tax from the taxable portion of such distribution at an
appropriate percentage. The rate of withholding on annuity payments where no
mandatory withholding is required is determined on the basis of the withholding
certificate that you file with us. If you do not file a certificate, we will
automatically withhold federal taxes on the following basis:
- - For any annuity payments not subject to mandatory withholding, you will have
taxes withheld by us as if you are a married individual, with 3 exemptions;
and
- - For all other distributions, we will withhold at a 10% rate.
We will provide you with forms and instructions concerning the right to elect
that no amount be withheld from payments in the ordinary course. However, you
should know that, in any event, you are liable for payment of federal income
taxes on the taxable portion of the distributions, and you should consult with
your tax advisor to find out more information on your potential liability if you
fail to pay such taxes.
ERISA DISCLOSURE/REQUIREMENTS
ERISA (the "Employee Retirement Income Security Act of 1974") and the Code
prevents a fiduciary and other "parties in interest" with respect to a plan
(and, for these purposes, an IRA would also constitute a "plan") from receiving
any benefit from any party dealing with the plan, as a result of the sale of the
contract. Administrative exemptions under ERISA generally permit the sale of
insurance/annuity products to plans, provided that certain information is
disclosed to the person purchasing the contract. This information has to do
primarily with the fees, charges, discounts and other costs related to the
contract, as well as any commissions paid to any agent selling the contract.
Information about any applicable fees, charges, discounts, penalties or
adjustments may be found under "What Are the Expenses Associated with the
Strategic Partners Horizon Contract" starting on page 16.
Information about sales representatives and commissions may be found under
"Other Information" and "Sale and Distribution of the Contract" on page 26.
In addition, other relevant information required by the exemptions is
contained in the contract and accompanying documentation. Please consult your
tax advisor if you have any additional questions.
SPOUSAL CONSENT RULES FOR RETIREMENT PLANS--QUALIFIED CONTRACTS
If you are married at the time your payments commence, you may be required by
federal law to choose an income option that provides survivor annuity income to
your spouse, unless your spouse waives that right. Similarly, if you are married
at the time of your death, federal law may require all or a portion of the death
benefit to be paid to your spouse, even if you designated someone else as your
beneficiary. A brief explanation of the applicable rules follows. For more
information, consult the terms of your retirement arrangement.
Defined Benefit Plans, Money Purchase Pension Plans, and ERISA 403(b)
Annuities. If you are married at the time your payments commence, federal law
requires that benefits be paid to you in the form of a "qualified joint and
survivor annuity" ("QJSA"), unless you and your spouse waive that right, in
writing. Generally, this means that you will receive a reduced payment during
your life and, upon your death, your spouse will receive at least one-half of
what you were receiving for life. You may elect to receive another income option
if your spouse consents to the election and waives his or her right to receive
the QJSA. If your
24
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
spouse consents to the alternative form of payment, your spouse may not receive
any benefits from the plan upon your death. Federal law also requires that the
plan pay a death benefit to your spouse if you are married and die before you
begin receiving your benefit. This benefit must be available in the form of an
annuity for your spouse's lifetime and is called a "qualified pre-retirement
survivor annuity" ("QPSA"). If the plan pays death benefits to other
beneficiaries, you may elect to have a beneficiary other than your spouse
receive the death benefit, but only if your spouse consents to the election and
waives his or her right to receive the QPSA. If your spouse consents to the
alternate beneficiary, your spouse will receive no benefits from the plan upon
your death. Any QPSA waiver prior to your attaining age 35 will become null and
void on the first day of the calendar year in which you attain age 35, if still
employed.
Defined Contribution Plans (including 401(k) Plans). Spousal consent to a
distribution is generally not required. Upon your death, your spouse will
receive the entire death benefit, even if you designated someone else as your
beneficiary, unless your spouse consents in writing to waive this right. Also,
if you are married and elect an annuity as a periodic income option, federal law
requires that you receive a QJSA (as described above), unless you and your
spouse consent to waive this right.
IRAs, non-ERISA 403(b) Annuities, and 457 Plans. Spousal consent to a
distribution is not required. Upon your death, any death benefit will be paid to
your designated beneficiary.
ADDITIONAL INFORMATION
For additional information about the requirements of federal tax law applicable
to tax favored plans, see the "IRA Disclosure Statement" on page 31. The
following additional tax considerations also may be of interest.
ENTITY OWNERS.
Where a contract is held by a non-natural person (e.g., a corporation), other
than as an agent or nominee for a natural person (or in other limited
circumstances), the contract will not be taxed as an annuity and increases in
the value of the contract will be subject to tax.
PURCHASE PAYMENTS MADE BEFORE AUGUST 14, 1982.
If your contract was issued in exchange for a contract containing purchase
payments made before August 14, 1982, favorable tax rules may apply to certain
withdrawals from the contract. Generally, withdrawals are treated as a recovery
of your investment in the contract first until purchase payments made before
August 14, 1982 are withdrawn. Moreover, any income allocable to purchase
payments made before August 14, 1982, is not subject to the 10% tax penalty.
GENERATION-SKIPPING TRANSFERS.
If you transfer your contract to a person two or more generations younger than
you (such as a grandchild or grandniece) or to a person that is more than 37 1/2
years younger than you, there may be generation-skipping transfer tax
consequences.
25
PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
9:
OTHER
INFORMATION
- --------------------------------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey") is a
stock life insurance company, organized in 1982 under the laws of the State of
New Jersey. It is licensed to sell life insurance and annuities in New Jersey
and New York, and accordingly is subject to the laws of each of those states.
Pruco Life of New Jersey's primary competitors are other insurers that sell
fixed and variable insurance products. Pruco Life of New Jersey currently has no
employees.
Pruco Life of New Jersey is an indirect wholly-owned subsidiary of The
Prudential Insurance Company of America ("Prudential"), a New Jersey stock life
insurance company that has been doing business since 1875. Prudential is an
indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential
Financial"), a New Jersey insurance holding company. As Pruco Life of New
Jersey's ultimate parent, Prudential Financial exercises significant influence
over the operations and capital structure of Pruco Life of New Jersey and
Prudential. However, neither Prudential Financial, Prudential, nor any other
related company has any legal responsibility to pay amounts that Pruco Life of
New Jersey may owe under the contract.
Pruco Life of New Jersey publishes annual and quarterly reports that are
filed with the SEC. These reports contain financial information about Pruco Life
of New Jersey that is annually audited by independent accountants. Pruco Life of
New Jersey's annual report for the year ended December 31, 2001, together with
subsequent periodic reports that Pruco Life of New Jersey files with the SEC,
are incorporated by reference into this prospectus. You can obtain copies, at no
cost, of any and all of this information, including the Pruco Life of New Jersey
annual report that is not ordinarily mailed to contractholders, the more current
reports and any subsequently filed documents at no cost by contacting us at the
address or telephone number listed on the cover. You may read and copy any
filings made by Pruco Life of New Jersey with the SEC at the SEC's Public
Reference Room at 450 Fifth Street, Washington, D.C. 20549. You can obtain
information on the operation of the Public Reference Room by calling
1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy
and information statements, and other information regarding issuers that file
electronically with the SEC at http://www.sec.gov.
SALE AND DISTRIBUTION OF THE CONTRACT
Prudential Investment Management Services LLC ("PIMS"), 100 Mulberry Street,
Newark, New Jersey 07102-4077, acts as the distributor of the contracts under a
"best efforts" underwriting agreement with Pruco Life of New Jersey under which
PIMS is reimbursed for its costs and expenses. PIMS is an indirect wholly-owned
subsidiary of Prudential Financial and is a limited liability corporation
organized under Delaware law in 1996. It is a registered broker-dealer under the
Securities Exchange Act of 1934 and a member of the National Association of
Securities Dealers, Inc. We pay the broker-dealer whose registered
representatives sell the contract either:
- - a commission of up to 5.0% of your purchase payments; or
- - a combination of a commission on purchase payments and a "trail"
commission -- which is a commission determined as a percentage of your
contract value that is paid periodically over the life of your contract.
The commission amount quoted above is the maximum amount which is paid. In most
circumstances, the registered representative who sold the contract will receive
significantly less. The broker-dealer who sells a contract to you will deliver
or make available to you a copy of the prospectus for the Strategic Partners
Horizon Annuity.
From time to time, Prudential or its affiliates may offer and pay non-cash
compensation to registered representatives who sell the contract. For example,
Prudential or an affiliate may pay for a training and education meeting that is
attended by registered representatives of both Prudential-affiliated broker-
dealers and independent broker-dealers. Prudential and its affiliates retain
discretion as to which broker-dealers to offer non-cash (and cash) compensation
arrangements, and will comply with NASD rules and
26
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
other pertinent laws in making such offers and payments. Our payment of cash or
non-cash compensation in connection with sales of the contract does not result
directly in any additional charge to you.
ASSIGNMENT
You can assign the contract at any time during your lifetime. We will not be
bound by the assignment until we receive written notice. We will not be liable
for any payment or other action we take in accordance with the contract if that
action occurs before we receive notice of the assignment. An assignment, like
any other change in ownership, may trigger a taxable event.
If the contract is issued under a qualified plan, there may be limitations on
your ability to assign the contract. For further information please speak to
your financial professional.
HOUSEHOLDING
To reduce costs, we now send only a single copy of prospectuses to each
consenting household, in lieu of sending a copy to each contractholder that
resides in the household. If you are a member of such a household, you should be
aware that you can revoke your consent to householding at any time, and begin to
receive your own copy of prospectuses, by calling 1-877-778-5008.
LITIGATION
We are subject to legal and regulatory actions in the ordinary course of our
businesses, including class actions. Pending legal and regulatory actions
include proceedings specific to our practices and proceedings generally
applicable to business practices in the industries in which we operate. In
certain of these lawsuits, large and/or indeterminate amounts are sought,
including punitive or exemplary damages.
Beginning in 1995, regulatory authorities and customers brought significant
regulatory actions and civil litigation against Pruco Life of New Jersey and
Prudential involving individual life insurance sales practices. In 1996,
Prudential, on behalf of itself and many of its life insurance subsidiaries,
including Pruco Life of New Jersey, entered into settlement agreements with
relevant insurance regulatory authorities and plaintiffs in the principal life
insurance sales practices class action lawsuit covering policyholders of
individual permanent life insurance policies issued in the United States from
1982 to 1995. Pursuant to the settlements, the companies agreed to various
changes to their sales and business practices controls, to a series of fines,
and to provide specific forms of relief to eligible class members. Virtually all
claims by class members filed in connection with the settlements have been
resolved and virtually all aspects of the remediation program have been
satisfied.
As of June 30, 2002 Prudential and/or Pruco Life of New Jersey remained a
party to approximately 40 individual sales practices actions filed by
policyholders who "opted out" of the class action settlement relating to
permanent life insurance policies issued in the United States between 1982 and
1995. In addition, there were 17 sales practices actions pending that were filed
by policyholders who were members of the class and who failed to "opt out" of
the class action settlement. Prudential and Pruco Life of New Jersey believed
that those actions are governed by the class settlement release and expects them
to be enjoined and/or dismissed. Additional suits may be filed by class members
who "opted out" of the class settlements or who failed to "opt out" but
nevertheless seek to proceed against Prudential and/or Pruco Life of New Jersey.
A number of the plaintiffs in these cases seek large and/or indeterminate
amounts, including punitive or exemplary damages. Some of these actions are
brought on behalf of multiple plaintiffs. It is possible that substantial
punitive damages might be awarded in any of these actions and particularly in an
action involving multiple plaintiffs.
Prudential has indemnified Pruco Life of New Jersey for any liabilities
incurred in connection with sales practices litigation covering policyholders of
individual permanent life insurance policies issued in the United States from
1982 to 1995.
On August 13, 2000, plaintiffs filed a purported national class action
against us in the District Court of
27
9:
OTHER INFORMATION CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
Valencia County, New Mexico, based upon the alleged failure to adequately
disclose the increased costs associated with payment of life insurance premiums
on a "modal" basis, i.e., more frequently than once a year. Similar actions have
been filed in New Mexico against over a dozen other insurance companies. We
filed an answer denying the claims. Thereafter, both we and the plaintiffs filed
separate motions for summary judgment. On March 9, 2001, the court entered an
order granting summary judgment to plaintiffs as to liability, permitting us to
appeal the order and staying the case pending completion of the appeal
proceeding. The appeals court agreed to hear the appeal; oral argument was held
before the appeals court on February 21, 2002.
Pruco Life of New Jersey's litigation is subject to many uncertainties, and
given the complexity and scope, the outcomes cannot be predicted. It is possible
that the results of operations or the cash flow of Pruco Life of New Jersey in a
particular quarterly or annual period could be materially affected by an
ultimate unfavorable resolution of pending litigation and regulatory matters.
Management believes, however, that the ultimate outcome of all pending
litigation and regulatory matters should not have a material adverse effect on
Pruco Life of New Jersey's financial position.
28
PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
MARKET-VALUE
ADJUSTMENT FORMULA
- --------------------------------------------------------------------------------
MARKET-VALUE ADJUSTMENT FORMULA
The general formula under which Pruco Life of New Jersey calculates the market
value adjustment applicable to a full or partial surrender, annuitization, or
settlement under Strategic Partners Horizon Annuity is set forth below. The
market value adjustment is expressed as a multiplier factor. That is, the
Contract Value after the market value adjustment ("MVA"), but before any
surrender charge, is as follows: Contract Value (after MVA) = Contract Value
(before MVA) X (1 + MVA). The MVA itself is calculated as follows:
1 + I
MVA = (-----------)to the N/12 power -1
1 + J + .0025
<Table>
where: I = the guaranteed credited interest rate
(annual effective) for the given
contract at the time of withdrawal or
annuitization or settlement.
J = the interpolated current credited
interest rate offered on new money at
the time of withdrawal,
annuitization, or settlement. (See
below for the interpolation formula)
N = equals the remaining number of months
in the contract's current guarantee
period (rounded up) at the time of
withdrawal or annuitization or
settlement.
</Table>
The MVA formula with respect to contracts issued in New York is what is depicted
above. The formula uses an interpolated rate "J" as the current credited
interest rate. Specifically, "J" is the interpolated current credited interest
rate offered on new money at the time of withdrawal, annuitization, or
settlement. The interpolated value is calculated using the following formula:
m/365 X (n + 1) year rate + (365 - m)/365 X n year rate,
where "n" equals the number of whole years remaining in the Contract's current
guarantee period, and "m" equals the number of days remaining in year "n" of the
current guarantee period.
MARKET VALUE ADJUSTMENT EXAMPLE
The following will illustrate the application of the Market-Value Adjustment.
For simplicity, surrender charges are ignored in these hypothetical examples.
Positive market value adjustment
- - Suppose a contract owner made an invested purchase payment of $10,000 on July
1, 2000 and received a guaranteed interest rate of 6% for 5 years. A request
to surrender the contract is made on May 1, 2002. At the time, the Contract
Value has accumulated to $11,127.11. The number of whole years remaining in
the guarantee period is 3.
- - On May 1, 2002 the interest rate declared by Pruco Life of New Jersey for a
guarantee period of 3 years (the number of whole years remaining) is 4%, and
for a guarantee period of 4 years (the number of whole years remaining plus
1) is 5%.
The following computations would be made:
1) Calculate the Charge Free Amount. The Charge Free Amount is the interest
credited in the contract in the previous contract year. This amount is
$600.00. It is not subject to a Market Value Adjustment.
2) Subtract the Charge Free Amount from the Contract Value. The result is the
amount subject to a Market Value Adjustment (MVA).
$11,127.11 - $600.00 = $10,527.11
3) Determine the Market Value Adjustment factor.
<Table>
N = 38
I = 6% (0.06)
J = [(60/365) X 0.05] + [((365-60)/365) X 0.04] =
0.0416
</Table>
The MVA factor calculation would be: [(1.06)/(1.0416 + .0025)](38/12) -1 =
0.04902
4) Multiply the amount subject to a Market Value Adjustment by the factor
calculated in Step 3.
$10,527.11 X 0.04902 = $516.04
5) Add together the Market Value Adjustment and the amount subject to the MVA.
$10,527.11 + $ 516.04 = $11,043.15
29
MARKET-VALUE ADJUSTMENT FORMULA CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
6) Add back the Charge Free Amount to get the total Contract Surrender Value.
$11,043.15 + $600.00 = $11,643.15
The MVA may not always be positive. Here is an example where it is negative.
- - Suppose a contract owner made an invested purchase payment of $10,000 on July
1, 2000 and received a guaranteed interest rate of 6% for 5 years. A request
to surrender the contract is made on May 1, 2002. At the time, the Contract
Value has accumulated to $11,127.11. The number of whole years remaining in
the guarantee period is 3.
- - On May 1, 2002 the interest rate declared by Pruco Life of New Jersey for a
guarantee period of 3 years (the number of whole years remaining) is 7%, and
for a guarantee period of 4 years (the number of whole years remaining plus
1) is 8%.
The following computations would be made:
1) Calculate the Charge Free Amount. The Charge Free Amount is the interest
credited in the contract in the previous contract year. This amount is
$600.00. It is not subject to a Market Value Adjustment.
2) Subtract the Charge Free Amount from the Contract Value. The result is the
amount subject to a Market Value Adjustment (MVA).
$11,127.11 - $600.00 = $10,527.11
3) Determine the Market Value Adjustment Factor.
<Table>
N = 38
I = 6% (0.06)
J = [(60/365) X 0.08] + [((365 - 60)/365) X 0.07] =
0.0716
</Table>
The MVA Factor calculation would be: [(1.06)/(1.0716 + .0025)](38/12) -1 =
- -0.04098
4) Multiply the amount subject to a Market Value Adjustment by the factor
calculated in Step 3.
$10,527.11 X -0.04098 = -$431.40
5) Add together the Market Value Adjustment and the amount subject to the MVA.
$10,527.11 - $431.40 = $10,095.71
6) Add back the Charge Free Amount to get the total Contract Surrender Value.
$10,095.71 + $600.00 = $10,695.71
30
PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
IRA DISCLOSURE STATEMENT
- --------------------------------------------------------------------------------
This statement is designed to help you understand the requirements of federal
tax law which apply to your individual retirement annuity (IRA), your Roth IRA,
your simplified employee pension IRA (SEP) for employer contributions, your
Savings Incentive Match Plan for Employees (SIMPLE) IRA, or to one you purchase
for your spouse. You can obtain more information regarding your IRA either from
your sales representative or from any district office of the Internal Revenue
Service. Those are federal tax law rules; state tax laws may vary.
FREE LOOK PERIOD
The annuity contract offered by this prospectus gives you the opportunity to
return the contract for a full refund within 10 days after it is delivered. This
is a more liberal provision than is required in connection with IRAs. To
exercise this "free-look" provision, return the contract to the representative
who sold it to you or to the Prudential Annuity Service Center at the address
shown on the first page of this prospectus.
ELIGIBILITY REQUIREMENTS
IRAs are intended for all persons with earned compensation whether or not they
are covered under other retirement programs. Additionally, if you have a
non-working spouse (and you file a joint tax return), you may establish an IRA
on behalf of your non-working spouse. A working spouse may establish his or her
own IRA. A divorced spouse receiving taxable alimony (and no other income) may
also establish an IRA.
CONTRIBUTIONS AND DEDUCTIONS
Contributions to your IRA will be deductible if you are not an "active
participant" in an employer maintained qualified retirement plan or you have
"Adjusted Gross Income" (as defined under Federal tax laws) which does not
exceed the "applicable dollar limit." IRA (or SEP) contributions must be made by
no later than the due date for filing your income tax return for that year,
excluding extensions (generally by April 15th). For a single taxpayer, the
applicable dollar limitation is $34,000 in 2002, with the amount of IRA
contribution which may be deducted reduced proportionately for Adjusted Gross
Income between $34,000 -- $44,000. For married couples filing jointly, the
applicable dollar limitation is $54,000, with the amount of IRA contribution
which may be deducted reduced proportionately for Adjusted Gross Income between
$54,000-$64,000. There is no deduction allowed for IRA contributions when
Adjusted Gross Income reaches $44,000 for individuals and $64,000 for married
couples filing jointly. Income limits are scheduled to increase until 2006 for
single taxpayers and 2007 for married taxpayers.
Contributions made by your employer to your SEP are excludable from your
gross income for tax purposes in the calendar year for which the amount is
contributed. Certain employees who participate in a SEP will be entitled to
elect to have their employer make contributions to their SEP on their behalf or
to receive the contributions in cash. If the employee elects to have
contributions made on the employee's behalf to the SEP, those funds are not
treated as current taxable income to the employee. Elective deferrals under a
SEP are limited to $11,000 in 2002 with a permitted catch-up contribution of
$1,000 for individuals age 50 and above. Contribution and catch-up contribution
limits are scheduled to increase through 2006 and are indexed for inflation
thereafter. Salary-reduction SEPs (also called "SARSEPs") are available only if
at least 50% of the employees elect to have amounts contributed to the SARSEP
and if the employer has 25 or fewer employees at all times during the preceding
year. New SARSEPs may not be established after 1996.
The IRA maximum annual contribution and your tax deduction is limited to the
lesser of: (1) the maximum amount allowed by law, including catch-up
contributions if applicable, or (2) 100% of your earned compensation.
Contributions in excess of these limits may be subject to penalty. See below.
Under a SEP agreement, the maximum annual contribution which your employer
may make on your behalf to a SEP contract that is excludable from your income is
the lesser of 25% of your salary or $40,000 in 2002. An employee who is a
participant in a SEP agreement may make after-tax contributions to the SEP
31
IRA DISCLOSURE STATEMENT CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
contract, subject to the contribution limits applicable to IRAs in general.
Those employee contributions will be deductible subject to the deductibility
rules described above.
The maximum tax deductible annual contribution that a divorced spouse with no
other income may make to an IRA is the lesser of (1) the maximum amount allowed
by law, including catch-up contributions if applicable or (2) 100% of taxable
alimony.
If you or your employer should contribute more than the maximum contribution
amount to your IRA or SEP, the excess amount will be considered an "excess
contribution." You are permitted to withdraw an excess contribution from your
IRA or SEP before your tax filing date without adverse tax consequences. If,
however, you fail to withdraw any such excess contribution before your tax
filing date, a 6% excise tax will be imposed on the excess for the tax year of
contribution.
Once the 6% excise tax has been imposed, an additional 6% penalty for the
following tax year can be avoided if the excess is (1) withdrawn before the end
of the following year, or (2) treated as a current contribution for the
following year. (See PREMATURE DISTRIBUTIONS below for penalties imposed on
withdrawal when the contribution exceeds the maximum amount allowed by law,
including catch-up contributions if applicable.)
IRA FOR NON-WORKING SPOUSE
If you establish an IRA for yourself, you may also be eligible to establish an
IRA for your "non-working" spouse. In order to be eligible to establish such a
spousal IRA, you must file a joint tax return with your spouse and, if your
non-working spouse has compensation, his/her compensation must be less than your
compensation for the year. Contributions of up to the maximum amount allowed by
law, including catch-up contributions if applicable may be made to your IRA and
the spousal IRA if the combined compensation of you and your spouse is at least
equal to the amount contributed. If requirements for deductibility (including
income levels) are met, you will be able to deduct an amount equal to the least
of (i) the amount contributed to the IRAs; (ii) twice the maximum amount allowed
by law, including catch-up contributions if applicable; or (iii) 100% of your
combined gross income.
Contributions in excess of the contribution limits may be subject to penalty.
See above under "Contributions and Deductions." If you contribute more than the
allowable amount, the excess portion will be considered an excess contribution.
The rules for correcting it are the same as discussed above for regular IRAs.
Other than the items mentioned in this section, all of the requirements
generally applicable to IRAs are also applicable to IRAs established for
non-working spouses.
ROLLOVER CONTRIBUTION
Once every year, you are permitted to withdraw any portion of the value of your
IRA or SEP and reinvest it in another IRA or bond. Withdrawals may also be made
from other IRAs and contributed to this contract. This transfer of funds from
one IRA to another is called a "rollover" IRA. To qualify as a rollover
contribution, the entire portion of the withdrawal must be reinvested in another
IRA within 60 days after the date it is received. You will not be allowed a
tax-deduction for the amount of any rollover contribution.
A similar type of rollover to an IRA can be made with the proceeds of a
qualified distribution from a qualified retirement plan or tax-sheltered
annuity. Properly made, such a distribution will not be taxable until you
receive payments from the IRA created with it. Unless you were a self-employed
participant in the distributing plan, you may later roll over such a
contribution to another qualified retirement plan as long as you have not mixed
it with IRA (or SEP) contributions you have deducted from your income. (You may
roll less than all of a qualified distribution into an IRA, but any part of it
not rolled over will be currently includable in your income without any capital
gains treatment.) Beginning in 2002, the rollover options increase. Funds can be
rolled over from an IRA or SEP to another IRA or SEP or to another qualified
retirement plan or 457 government plan even if additional contributions have
been made to the account.
32
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
DISTRIBUTIONS
(A) PREMATURE DISTRIBUTIONS
At no time can your interest in your IRA or SEP be forfeited. To insure that
your contributions will be used for retirement, the federal tax law does not
permit you to use your IRA or SEP as security for a loan. Furthermore, as a
general rule, you may not sell or assign your interest in your IRA or SEP to
anyone. Use of an IRA (or SEP) as security or assignment of it to another will
invalidate the entire annuity. It then will be includable in your income in the
year it is invalidated and will be subject to a 10% tax penalty if you are not
at least age 59 1/2 or totally disabled. (You may, however, assign your IRA or
SEP without penalty to your former spouse in accordance with the terms of a
divorce decree.)
You may surrender any portion of the value of your IRA (or SEP). In the case
of a partial surrender which does not qualify as a rollover, the amount
withdrawn will be includable in your income and subject to the 10% penalty if
you are not at least age 59 1/2 or totally disabled unless you comply with
special rules requiring distributions to be made at least annually over your
life expectancy.
The 10% penalty tax does not apply to the withdrawal of an excess
contribution as long as the excess is withdrawn before the due date of your tax
return. Withdrawals of excess contributions after the due date of your tax
return will generally be subject to the 10% penalty unless the excess
contribution results from erroneous information from a plan trustee making an
excess rollover contribution or unless you are over age 59 1/2 or are disabled.
(B) DISTRIBUTION AFTER AGE 59 1/2
Once you have attained age 59 1/2 (or have become totally disabled), you may
elect to receive a distribution of your IRA (or SEP) regardless of when you
actually retire. In addition, you must commence distributions from your IRA by
April 1 following the year you attain age 70 1/2. You may elect to receive the
distribution under any one of the periodic payment options available under the
contract. The distributions from your IRA under any one of the periodic payment
options or in one sum will be treated as ordinary income as you receive them to
the degree that you have made deductible contributions. If you have made both
deductible and nondeductible contributions, the portion of the distribution
attributable to the nondeductible contribution will be tax-free.
(C) INADEQUATE DISTRIBUTIONS--50% TAX
Your IRA or SEP is intended to provide retirement benefits over your lifetime.
Thus, federal tax law requires that you either (1) receive a lump-sum
distribution of your IRA by April 1 of the year following the year in which you
attain age 70 1/2 or (2) start to receive periodic payments by that date. If you
elect to receive periodic payments, those payments must be sufficient to pay out
the entire value of your IRA during your life expectancy (or over the joint life
expectancies of you and your spouse/beneficiary.) The calculation is revised
under the IRS final regulations for distributions beginning in 2003 and are
optional for distributions in 2002. If the payments are not sufficient to meet
these requirements, an excise tax of 50% will be imposed on the amount of any
underpayment.
(D) DEATH BENEFITS
If you, (or your surviving spouse) die before receiving the entire value of your
IRA (or SEP), the remaining interest must be distributed to your beneficiary (or
your surviving spouse's beneficiary) in one lump-sum by December 31st of the
fifth year after your (or your surviving spouse's death, or applied to purchase
an immediate annuity for the beneficiary. This annuity must be payable over the
life expectancy of the beneficiary beginning by December 31 of the year
following the year after your or your spouse's death. If your spouse is the
designated beneficiary, he or she is treated as the owner of the IRA. If minimum
required distributions have begun and no designated beneficiary is identified by
September 30 of the year following the year of death, the entire amount must be
distributed based on the life expectancy of the owner using the owner's age
prior to death. A distribution of the balance of your IRA upon your death will
not be considered a
33
IRA DISCLOSURE STATEMENT CONTINUED
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PART II
STRATEGIC PARTNERS HORIZON ANNUITY PROSPECTUS SECTIONS 1-9
gift for federal tax purposes, but will be included in your gross estate for
purposes of federal estate taxes.
ROTH IRAS
Section 408A of the Code permits eligible individuals to contribute to a type of
IRA known as a "Roth IRA." Contributions may be made to a Roth IRA by taxpayers
with adjusted gross incomes of less than $160,000 for married individuals filing
jointly and less than $110,000 for single individuals. Married individuals
filing separately are not eligible to contribute to a Roth IRA. The maximum
amount of contributions allowable for any taxable year to all Roth IRAs
maintained by an individual is generally the lesser of the maximum amount
allowed by law and 100% of compensation for that year (the maximum amount
allowed by law is phased out for incomes between $150,000 and $160,000 for
married and between $95,000 and $110,000 for singles). The contribution limit is
reduced by the amount of any contributions made to a non-Roth IRA. Contributions
to a Roth IRA are not deductible.
For taxpayers with adjusted gross income of $100,000 or less, all or part of
amounts in a non-Roth IRA may be converted, transferred or rolled over to a Roth
IRA. Some or all of the IRA value will typically be includable in the taxpayer's
gross income. If such a rollover, transfer or conversion occurred before January
1, 1999, the portion of the amount includable in gross income must be included
in income ratably over the next four years beginning with the year in which the
transaction occurred. Provided a rollover contribution meets the requirements of
IRAs under Section 408(d)(3) of the Code, a rollover may be made from a Roth IRA
to another Roth IRA.
UNDER SOME CIRCUMSTANCES, IT MAY NOT BE ADVISABLE TO ROLL OVER, TRANSFER OR
CONVERT ALL OR PART OF A NON-ROTH IRA TO A ROTH IRA. PERSONS CONSIDERING A
ROLLOVER, TRANSFER OR CONVERSION SHOULD CONSULT THEIR OWN TAX ADVISOR.
"Qualified distributions" from a Roth IRA are excludable from gross income. A
"qualified distribution" is a distribution that satisfies two requirements: (1)
the distribution must be made (a) after the owner of the IRA attains age 59 1/2;
(b) after the owner's death; (c) due to the owner's disability; or (d) for a
qualified first time homebuyer distribution within the meaning of Section
72(t)(2)(F) of the Code; and (2) the distribution must be made in the year that
is at least five tax years after the first year for which a contribution was
made to any Roth IRA established for the owner or five years after a rollover,
transfer, or conversion was made from a non-Roth IRA to a Roth IRA.
Distributions from a Roth IRA that are not qualified distributions will be
treated as made first from contributions and then from earnings, and taxed
generally in the same manner as distributions from a non-Roth IRA.
Distributions from a Roth IRA need not commence at age 70 1/2. However, if
the owner dies before the entire interest in a Roth IRA is distributed, any
remaining interest in the contract must be distributed under the same rules
applied to traditional IRAs where death occurs before the required beginning
date.
REPORTING TO THE IRS
Whenever you are liable for one of the penalty taxes discussed above (6% for
excess contributions, 10% for premature distributions or 50% for underpayments),
you must file Form 5329 with the Internal Revenue Service. The form is to be
attached to your federal income tax return for the tax year in which the penalty
applies. Normal contributions and distributions must be shown on your income tax
return for the year to which they relate.
34
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
REGISTRATION FEES
Pruco Life Insurance Company of New Jersey is registering $200 million of
interests in the market value adjusted annuity contracts described in this
registration statement. Pruco Life Insurance Company of New Jersey has paid
$18,400 to the SEC for the registration fees required under the Securities Act
of 1933.
FEDERAL TAXES
Pruco Life Insurance Company of New Jersey estimates the federal tax effect
associated with the deferred acquisition costs attributable to receipt of $200
million of purchase payments over a two year period to be approximately
$600,000.
STATE TAXES
Pruco Life Insurance Company of New Jersey estimates that approximately
$-0- in premium taxes will be owed upon receipt of purchase payments under the
contracts.
PRINTING COSTS
Pruco Life Insurance Company of New Jersey estimates that the cost of printing
prospectuses for the amount of securities registered herein will be
approximately $15,000.
LEGAL COSTS
This registration statement was prepared by Prudential attorneys whose time is
allocated to Pruco Life Insurance Company of New Jersey.
ACCOUNTING COSTS
PricewaterhouseCoopers LLC, the independent public accountant that audits Pruco
Life of New Jersey's financial statements, charges approximately $4,000 in
connection with each filing of this registration statement with the Commission.
PREMIUM PAID TO INDEMNIFY OFFICERS
Officers and Directors of Pruco Life Insurance Company of New Jersey are
indemnified under a policy that also covers officers and directors of other
entities controlled by Prudential Financial, Inc. A portion of the cost of that
policy is attributed to Pruco Life Insurance Company of New Jersey.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Registrant, in connection with certain affiliates, maintains various
insurance coverages under which the underwriter and certain affiliated persons
may be insured against liability which may be incurred in such capacity, subject
to the terms, conditions and exclusions of the insurance policies.
New Jersey, being the state of organization of Pruco Life Insurance Company of
New Jersey ("Pruco"), permits entities organized under its jurisdiction to
indemnify directors and officers with certain limitations. The relevant
provisions of New Jersey law permitting indemnification can be found in Section
14A:3-5, et seq. of the
II-1
New Jersey Statutes Annotated. The text of Pruco's By-law, Article V which
relates to indemnification of officers and directors, is incorporated by
reference to Exhibit 3(ii) to its Form 10-Q, filed August 15, 1997.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions or otherwise, the Registrant has
been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) EXHIBITS
(1) Form of a Distribution Agreement between Prudential Investment
Management Services, Inc., ("PIMS") (Principal Underwriter) and Pruco
Life Insurance Company of New Jersey (Depositor). (Note 2)
(3A) Articles of Incorporation of Pruco Life Insurance Company of New Jersey,
as amended February 12, 1998. (Note 6)
(3B) By-Laws of Pruco Life Insurance Company of New Jersey, as amended August
4, 1999.(Note 7)
(4) Form of Contract (Note 1)
(4)(a) Form of Application [ORD 99720 New York] (Note 1)
(4)(b) Form of Application [ORD 99720 New York Third Party] (Note 1)
23(B) Opinion of Counsel as to the legality of the securities being
registered. (Note 1)
(24) Powers of Attorney:
(a) Vivian L. Banta, Richard J. Carbone, Helen M. Galt
(Note 5)
(b) James J. Avery, Jr. (Note 6)
(c) David R. Odenath, Jr., William J. Eckert (Note 7)
(d) Ronald P. Joelson (Note 8)
(Note 1) Filed herewith.
(Note 2) Incorporated by reference to Post Effective Amendment No. 4 on Form
N-4, Registration No. 333-18117, filed April 16, 1999, on behalf the Pruco Life
Insurance Company of New Jersey.
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(Note 3) Incorporated by reference to Post-Effective Amendment No. 12 to Form
S-1, Registration No. 33-20018, filed on April 16, 1999 on behalf of the Pruco
Life of New Jersey Variable Contract Real Property Account.
(Note 4) Incorporated by reference to Form S-6, Registration No. 333-85117 filed
August 13, 1999 on behalf of the Pruco Life of New Jersey Variable Appreciable
Account.
(Note 5) Incorporated by reference to Post-Effective Amendment No. 5 to Form
S-6, Registration No. 333-85117 filed June 28, 2001 on behalf of the Pruco Life
of New Jersey Variable Appreciable Account.
(Note 6) Incorporated by reference to Post-Effective Amendment No. 10 to Form
S-1, Registration No. 33-20018, filed April 9, 1998 on behalf of the Pruco Life
of New Jersey Variable Contract Real Property Account.
(Note 7) Incorporated by reference to Form S-6 Registration No. 333-49334
filed February 8, 2001 on behalf of the Pruco Life of New Jersey Variable
Appreciable Account.
(Note 8) Incorporated by reference to Post-Effective Amendment No. 14 to Form
S-1, Registration No. 33-20018, filed April 10, 2001 on behalf of the Pruco Life
of New Jersey Variable Contract Real Property Account.
ITEM 17. UNDERTAKINGS
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To include any prospectus required by section 10 (a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the
information in the registration statement
(iii) To include any material information with respect to the plan
of distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;
(2) That, for the purpose of determining any liability under the Securities
Act of 1933, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the
termination of the offering.
(4) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing
of the registrant's annual report pursuant to section 13(a) or section
15(d) of the Securities Exchange Act of 1934 that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid
by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Newark, State of New
Jersey, on this 24th day of October, 2002.
PRUCO LIFE INSURANCE COMPANY
OF NEW JERSEY
(Registrant)
By: /s/ ANDREW J. MAKO
------------------------------
ANDREW J. MAKO
EXECUTIVE VICE PRESIDENT
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the date indicated.
SIGNATURE AND TITLE
/s/* October 24, 2002
----------------------------------------------------
VIVIAN L. BANTA
PRESIDENT AND CHAIRMAN
/s/* *By: /s/ C. CHRISTOPHER SPRAGUE
--------------------------------------------------- -------------------------------
WILLIAM J. ECKERT, IV C. CHRISTOPHER SPRAGUE
VICE PRESIDENT AND CHIEF (ATTORNEY-IN-FACT)
ACCOUNTING OFFICER,(PRINCIPAL
FINANCIAL OFFICER
/s/*
----------------------------------------------------
RONALD P. JOELSON
DIRECTOR
/s/*
----------------------------------------------------
RICHARD J. CARBONE
DIRECTOR
/s/*
----------------------------------------------------
HELEN M. GALT
DIRECTOR
/s/*
----------------------------------------------------
JAMES J. AVERY, JR.
VICE CHAIRMAN OF THE BOARD AND
DIRECTOR
/s/*
----------------------------------------------------
DAVID R. ODENATH, JR.
DIRECTOR
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EXHIBIT INDEX
(4) Form of Contract [MVA-2002 NY]
4(a) Form of Application [ORD 99720 New York]
4(b) Form of Application [ORD 99720 New York Third Party]