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OF RECORD
December 5, 2006, Volume 53, No. 14

Summary Annual Report for the
University of Pennsylvania Matching Plan,
University of Pennsylvania Basic Plan
and the Supplemental Retirement Annuity Plan

  • Amended Summary Annual Report for University of Pennsylvania Retiree Health Plan
  • Summary Annual Report for University of Pennsylvania Retiree Health 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 January 1, 2005 through December 31, 2005. 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:  The University of Pennsylvania Matching Plan and Supplemental Retirement Annuity Plan of the University of Pennsylvania

    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 $5,756,367. These expenses included $727 in administrative expenses, $1,712,332 in benefits paid to participants and beneficiaries, $4,008,000 in premiums paid for the provision of benefits under individual policies and other expenses of $35,308. A total of 15,231 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 $136,089,083 as of December 31, 2005, compared to $103,815,067 as of January 1, 2005. During the plan year the plan experienced an increase in its net assets of $32,274,016. 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 plan year and the value of assets at the beginning of the plan year or the cost of assets acquired during the plan year. The Plan had total income of $38,030,383, including employer contributions of $29,039,890, employee rollover contributions of $105,805 and earnings from investments of $8,884,688.

    The Plan has contracts with TIAA-CREF which allocate funds toward individual policies. The total premiums paid for the plan year ending December 31, 2005 were $3,696,313.

    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:

    1. Financial information;
    2. Assets held for investment;
    3. Insurance information; and
    4. Information regarding pooled separate accounts in which the plan participates.

    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 $5.00 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 for the University of Pennsylvania Basic Plan. 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.

     

    Amended Summary Annual Report for
    University of Pennsylvania Retiree Health Plan

    This is an amended summary of the annual report of the University of Pennsylvania Retiree Health Plan (Plan No. 530), sponsored by The Trustees of the University of Pennsylvania, EIN 23-1352685 for the period that began on July 1, 2004 and ended on June 30, 2005.  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.

    Retiree benefits were provided through a combination of self-insured payments from the University’s general assets, payments from a trust fund established to fund retiree benefits, and insurance contracts with third party insurance companies.

    Medical and Prescription Drug Benefits

    Insurance Information

    The Plan has contracts with Aetna/U.S. Healthcare and Subsidiaries, Keystone Health Plan East and Independence Blue Cross to pay medical claims incurred under the terms of the contracts. The total premiums paid for the plan year ending June 30, 2005 were $2,676,288.

    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, 2005, the premiums paid under such “experience-rated” contracts were $1,946,531 and the total of all benefit claims paid under these experience-rated contracts during the plan year were $1,617,073.

    Basic Financial Information

    The value of Plan assets, after subtracting liabilities of the Plan, was $116,698,404 as of June 30, 2005, compared to $95,170,991 as of July 1, 2004.  During the plan year the Plan experienced an increase in its net assets of $21,527,413. 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 $33,565,596 including employee contributions of $1,074,529, employer contributions of $19,175,074 and earnings from investments of $13,315,993.

    Plan expenses were $12,038,183.  These expenses included $849,442 in administrative expenses and $11,188,741 in benefits paid to participants and beneficiaries.

    Life Insurance Benefits

    The Plan has a contract with Aetna Life Insurance Company to pay life insurance claims incurred under the terms of the contract.  The total premiums paid under this contract for the plan year ending June 30, 2005 were $211,274. 

    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:

    1. Accountant’s report;
    2. Financial information and information on payments to service providers;
    3. Assets held for investment;
    4. Transactions in excess of 5% of Plan assets; and
    5. Insurance information.

    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 $5.00 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.

     

    Summary Annual Report for
    University of Pennsylvania Retiree Health Plan

    This is a summary of the annual report of the University of Pennsylvania Retiree Health Plan (Plan No. 530), sponsored by The Trustees of the University of Pennsylvania, EIN 23-1352685 for the period that began on July 1, 2005 and ended on December 31, 2005. 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.

    Retiree benefits were provided through a combination of self-insured payments from the University’s general assets, payments from a trust fund established to fund retiree benefits, and insurance contracts with third party insurance companies.

    Medical and Prescription Drug Benefits

    Insurance Information

    The Plan has contracts with Aetna/U.S. Healthcare and Subsidiaries and Keystone Health Plan East to pay medical claims incurred under the terms of the contracts. The total premiums paid for the plan year ending December 31, 2005 were $853,586 (premiums paid for the entire 2005 calendar year).

    Basic Financial Information

    The value of Plan assets, after subtracting liabilities of the Plan, was $125,704,435 as of December 31, 2005, compared to $116,698,404 as of July 1, 2005. During the plan year the Plan experienced an increase in its net assets of $9,006,031. 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 $14,270,646 including employee contributions of $595,321, employer contributions of $7,999,039 and earnings from investments of $5,676,286.

    Plan expenses were $5,264,615. These expenses included $1,102,679 in administrative expenses and $4,161,936 in benefits paid to participants and beneficiaries.

    Life Insurance Benefits

    The Plan has a contract with Aetna Life Insurance Company to pay life insurance claims incurred under the terms of the contract. The total premiums paid under this contract for the plan year ending December 31, 2005 were $105,637.

    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:

    1. Financial information and information on payments to service providers;

    2. Assets held for investment; and

    5. Insurance information.

    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 $5.00 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. 

    —Division of Human Resources

    Almanac - December 5, 2006, Volume 53, No. 14