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Prudential Investment Management Services

Cathy of Roseville CA (1/29/03):
On 1/22/03 I went to Prudential's website to transfer my 403B funds out of their Medley Funds of Stocks and Equities. There were several options to choose from. My intent was to put my entire retirement account in a money market account.

There are two money market accounts available to employees of Golden Gate University. One is a Medley account, the other is a Prudential Goverment Securities Trust account. There was no warning on the exchange funds page that advised me that I should review the plan highlights (located on another web page (or a link to the highlights page) to indicate I might be electing a plan where I would be charged surrender fees.

I chose the Prudential Government Securities Plan and received a confirmation in the mail that shows I was charged $843.60 in surrender fees (4% of my contributions and 4% of my employers contributions). I called Prudential right away (the confirmation says I have 30 days to register a complaint - so I called them on 1/28/03). Marilyn said she would check into to it, asked three other people and said she got three different answers. She then said she would call me back after my account had been reviewed.

Today (1/29/03) she called me to say the surrender fees stand, that I was charged 4% of my contributions and 4% of my employers contributions. I asked if there was a review board I could write to. She said no, that my accout had been reviewed by senior management, but that she would register a complaint with them. The telephone conversation was recorded. She informed me that information about possible surrender charges were contained on the website under Highlights.

She said she would register my complaint on the basis that there was no indication on the Exhange Funds page that does not warn anyone surrender charges may apply. I said, yes, if I had had a warning, I would have never elected to place my funds in the Prudential Government Securities. I am outraged and very, very disappointed with Prudential. It seems to be a cruel trick on unsuspecting consumers to help themselves to hard-earned wages that we are trying to save for retirement.

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