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PRUDENTIAL MUNICIPAL
SERIES FUND
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(Connecticut Money Market Series and
Massachusetts Money Market Series)
Supplement Dated August 24, 2000
Prospectus Dated December 23, 1999
The Board of Trustees of Prudential Municipal Series Fund (the Fund) has
recently approved a proposal to exchange the assets and liabilities of each of
the Connecticut Money Market Series and Massachusetts Money Market Series (each
individually, a Series, and collectively, the Series) of the Fund for shares of
Prudential Tax-Free Money Fund, Inc. (Tax-Free Money Fund). Shares of each
Series would be exchanged at net asset value for Class A shares of equivalent
value of Tax-Free Money Fund.
The transfer has been approved with respect to each Series by the Trustees of
the Fund and by the Board of Directors of Tax-Free Money Fund and is subject to
approval by the shareholders of each Series. The shareholders' meeting with
respect to each Series is scheduled to occur in December 2000. It is anticipated
that a proxy statement/prospectus relating to the transactions will be mailed to
each Series' shareholders in late October 2000.
Under the terms of the proposal, shareholders of the Series would become
shareholders of Tax-Free Money Fund. Due to the nature of each Series, the
Tax-Free Money Fund and their respective portfolios, it is unclear whether the
proposed transfers will qualify as tax-free reorganizations for federal tax
purposes. However, it is anticipated that there will be no significant federal
tax consequences to either Series' shareholders as a result of the proposed
transfers. No sales charges would be imposed on the proposed transfers.
MF2000C4
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Effective immediately, the Fund will no longer accept orders to purchase or
exchange into shares of any class, except for (1) shareholders who have elected
to reinvest dividends and/or distributions, (2) current shareholders
participating in automatic investment plans and (3) purchases made through the
Autosweep or Advantage Account Program or any other money market sweep program.
The current exchange privilege of obtaining shares of other Prudential Mutual
Funds and the current redemption rights will remain in effect until the
transaction is consummated.
The investment objective of Tax-Free Money Fund is to seek the highest level
of current income that is exempt from federal income taxes, consistent with
liquidity and the preservation of capital.
