OF RECORD Benefits

Summary Annual Reports

Faculty & Staff Scholarship, Position Discontinuation and Staff Transition Plan,
Life Insurance Program, Long-Term Disability Plan for University Personnel,
Pre-Tax Health Care Expense Account, Dental Plans, Pennsylvania Annuity Plan
Dental Plan of the University of Pennsylvania--Faculty Practice
Retirement Allowance Plan, and Faculty Income Allowance Plan
of the University of Pennsylvania for the Plan year ended June 30, 1997

This is a summary of the annual reports for the University of Pennsylvania Plans named above for the Plan year beginning July 1, 1996 and ending June 30, 1997. These Plans are sponsored by the Trustees of the University of Pennsylvania, whose Federal employer identification number is 23-1352685. The annual reports have been filed with the Internal Revenue Service as required under the Employee Retirement Income Security Act of 1974 (ERISA).

It is also required under the terms of the Employee Retirement Income Security Act of 1974 that these Summary Annual Reports be furnished to Plan participants. To facilitate publication, the reports for the Plan year ended June 30, 1997 have been combined. Consequently, portions of this summary may refer to the Plans in which you are not currently participating.

Faculty & Staff Scholarship

The Trustees of the University of Pennsylvania maintain a Plan providing scholarships to full-time faculty and staff. The University provides these benefits in accordance with the terms of the Plan.

Position Discontinuation and Staff Transition Plan

The Trustees of the University of Pennsylvania maintain a Plan to provide transitional support and to facilitate economic adjustment to eligible staff members whose employment is terminated involuntarily without fault. The University provides these benefits in accordance with the terms of the Plan.

Life Insurance Program

The Plan has a contract with Teachers Insurance and Annuity Association/College Retirement Equities Fund (TIAA-CREF) to pay all life insurance claims incurred under the terms of the Plan. The total premiums paid for the Plan year ended June 30, 1997 were $1,700,559.

Plan costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the Plan year ending June 30, 1997, the premiums paid under the experience rated contract during the Plan year were $1,700,559, and the total of all benefit claims charged under the experience rated contract during the Plan year was $1,642,407.

Long-Term Disability Plan for University Personnel

The Trustees of the University of Pennsylvania maintain a Plan providing long-term disability benefits for eligible employees. The University provides these benefits in accordance with the terms of the Plan.

Pre-Tax Health Care Expense Account

The Trustees of the University of Pennsylvania maintain a Plan providing reimbursement of health care expenses funded through salary reduction agreements for eligible faculty and staff. The University provides these benefits in accordance with the terms of the Plan.

Dental Plan--Prudential

The Plan is a prepaid Plan providing dental benefits. Since there is no insurance involved, no insurance premiums were paid during the Plan year ending June 30, 1997.

Dental Plan-Penn Faculty Practice Plan

The Plan is a prepaid Plan providing dental benefits. Since there is no insurance involved, no insurance premiums were paid during the Plan year ending June 30, 1997.

Pennsylvania Annuity Plan: Basic Financial Statement

Funds contributed to the Plan are allocated toward the purchase of individual annuity contracts issued by the Equitable Life Assurance Society of the United States. Total premiums for the Plan year ending June 30, 1997 were $109,780.

Faculty Income Allowance Plan

The Trustees of the University of Pennsylvania maintain a Plan providing for early retirement benefits for eligible faculty members. The University provides these benefits in accordance with the terms of the Plan.

Retirement Allowance Plan: Basic Financial Statement

Benefits under this Plan are provided through a trust with Bankers Trust Company. Plan expenses were $4,382,297. These expenses include $257,200 in administrative expenses and PBGC fees and $4,125,097 in benefits paid to Plan participants and beneficiaries. A total of 5,910 individuals were participants or beneficiaries at the end of the Plan year, although not all of these persons had yet earned the right to receive benefits.

The value of Plan assets, after subtracting liabilities of the Plan, was $124,000,743 as of June 30, 1997, compared to $99,759,104 as of June 30, 1996. During the Plan year, the Plan experienced an increase in its net assets of $24,241,639. This increase includes unrealized appreciation or depreciation in the value of plan assets; that is, the difference between the value of the Plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year.

Minimum Funding Standards

An actuary's statement shows that the Plan was funded in accordance with the minimum funding standards of ERISA.

Additional Information

As described below, you have the right to receive a copy of the full annual report of the Retirement Allowance Plan, or any part thereof, on request. The items listed below are included in that report:

An accountant's report
Assets held for investment
Insurance information (including sales commissions paid by insurance carriers), and
Actuarial information regarding the funding of the plan

You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the Plan and accompanying notes, or a statement of income and expenses of the Plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs does not include a charge for the copying of these portions of the report because these portions are furnished without charge.

Your Rights to Additional Information About These Plans

You have the right to receive a copy of the full annual report of any of these Plans, or any part thereof, on request.

To obtain a copy of the full annual report(s), or any part thereof, write or call the office of the Vice President of Human Resources who is the Plan Administrator, Room 538A, 3401 Walnut Street, Philadelphia, PA 19104, (215) 898-6884. The charge for the full annual report of the Retirement Allowance Plan is $5.00. The charge for each other full annual report is $2.50, and the charge for any single page is 25 cents.

In addition, you have the legally protected right to examine the annual reports at the University of Pennsylvania, Benefits Office, Room 527A, 3401 Walnut Street, Philadelphia, PA 19104. You also have the right to examine the annual reports at the U.S. Department of Labor in Washington, D.C., or obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to Public Disclosure Room, N4677, Pension and Welfare Benefit Programs, Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20216.

-- Human Resources

Almanac, Vol. 44, No. 31, April 28, 1998