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Human Resources

Summary Annual Reports of the
University of Pennsylvania Plans

 

Retirement Allowance Plan

This is a summary of the annual report for the Retirement Allowance Plan of the University of Pennsylvania (Plan No. 003) sponsored by the University of Pennsylvania, EIN 23-1352685, for the period July 1, 2002 through June 30, 2003. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

Basic Financial Statement

Benefits under the plan are provided through a trust fund.  Plan expenses were $5,650,669. These expenses included $621,040 in administrative expenses and $5,029,629 in benefits paid to participants and beneficiaries. A total of 5,864 persons were participants in or beneficiaries of the plan 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 $132,363,607 as of June 30, 2003, compared to $132,378,190 as of July 1, 2002. During the plan year the plan experienced a decrease in its net assets of $14,583. This decrease includes net unrealized appreciation 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 assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of ($1,184,154), including losses of $4,407,157 from the sale of assets, earnings from investments of $3,164,208 and other income of $58,795.

Minimum Funding Standards

An actuary's statement shows that enough money has been contributed to the plan to keep it funded in accordance with the minimum funding standards of ERISA.

Your Rights to Additional Information

Under ERISA, you have the right to receive a copy of the full annual report, or any part thereof, upon request.   The items listed below are included in that report:

Retiree Health Plan

This is a summary of the annual report of the University of Pennsylvania Retiree Health Plan, sponsored by the University of Pennsylvania, EIN 23-1352685 for the period that began on July 1, 2002 and ended on June 30, 2003. The annual report has been filed with the Employee Benefits Security Administration as required under the Employee Retirement Income Security Act of 1974 (ERISA). Please note that not all employees are eligible to participate in the Plan. Please consult your Plan materials for specific eligibility information.

The University of Pennsylvania has committed itself to pay certain medical benefits incurred under the terms of the Plan on a self-insured basis.

Insurance Information

The Plan also has contracts with Aetna Health, Inc., Keystone Health Plan East and Independence Blue Cross/Pennsylvania Blue Shield to pay medical claims incurred under the terms of the contracts. The total premiums paid for the plan year ending June 30, 2003 were $1,721,348.

Because some are so called "experience-rated" contracts, the premium 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, 2003, the premiums paid under such "experience-rated" contracts were $1,513,845 and the total of all benefit claims paid under these experience-rated contracts during the plan year were $1,283,056.

Basic Financial Information

The value of Plan assets, after subtracting liabilities of the Plan, was $78,831,848 as of June 30, 2003, compared to $70,500,406 as of July 1, 2002. During the plan year the Plan experienced an increase in its net assets of $8,331,442. This increase includes net unrealized appreciation 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 assets at the beginning of the year or the cost of assets acquired during the year. The Plan had total income of $3,608,000 attributable to earnings from investments and earnings from investments of $3,608,000.

Your Rights to Additional Information

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

Matching Plan, Basic Plan and the Supplemental Retirement
Annuity Plan

This is a summary of the annual reports of The University of Pennsylvania Matching Plan (Plan No. 001), The University of Pennsylvania Basic Plan (Plan No. 028) and the Supplemental Retirement Annuity Plan of the University of Pennsylvania (Plan No. 002) sponsored by the University of Pennsylvania, EIN: 23-1352685, for the period July 1, 2002 through June 30, 2003. The annual reports have been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

To facilitate publication, the summaries for all three plans have been combined within this summary. Consequently, portions of this summary may refer to a plan in which you are not currently participating.

Basic Financial Statement: Matching Plan and Supplemental Retirement Annuity Plan

The plans have contracts with the providers TIAA-CREF and Vanguard which allocate funds toward group deferred annuities and mutual funds. Participants who have accounts with these providers deal directly with them when making transactions in their respective accounts. The providers render financial reports directly to the plan participants.

Basic Financial Statement: The University of Pennsylvania Basic Plan

Benefits under the plan are provided through allocated insurance contracts and a trust fund.  Plan expenses were $4,162,849. These expenses included $190 in administrative expenses, $519,612 in benefits paid to participants and beneficiaries and $3,643,047 in premiums paid for the provision of benefits under individual policies. A total of 12,587 persons were participants in or beneficiaries of the plan at the end of the plan year.

The value of plan assets, after subtracting liabilities of the plan, was $53,947,679 as of June 30, 2003, compared to $31,261,458 as of July 1, 2002. During the plan year the plan experienced an increase in its net assets of $22,686,221.This increase includes net unrealized appreciation 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 assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $25,862,505, including employer contributions of $24,498,200, employee rollover contributions of $36,838, and earnings from investments of $1,327,467.

The Plan has contracts with TIAA-CREF which allocate funds toward individual policies.  The total premiums paid for the plan year ending June 30, 2003 were $3,474,671.

Your Rights to Additional Information

Under ERISA, you have the right to receive a copy of the full annual report, or any part thereof, upon request. The items listed below are included in that report for the University of Pennsylvania Basic Plan:

To obtain a copy of the full annual report, or any part thereof, write or call the office of the Plan Administrator, c/o Joanne M. Blythe, Retirement Manager, University of Pennsylvania, 3401 Walnut Street, Suite 527A, Philadelphia, PA  19104-6228, (215) 898-9947. The charge to cover copying costs will be $5 for the full annual report or 25 cents per page for any part thereof. 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 given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right under ERISA to examine the annual reports in the offices of the Employer at the address for the Plan Administrator, above, and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs.  Requests to the Department should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.