Summary Annual Report for
University of Pennsylvania Health & Welfare Program

This is a summary of the annual report of the University of Pennsylvania Health & Welfare Program, Plan No. 503, sponsored by The Trustees of the University of Pennsylvania, EIN 23-1352685 for the period that began on July 1, 2005 and ended on June 30, 2006. 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 all of the benefits available under the Plan. Please consult your Plan materials for specific eligibility information.

Medical, Prescription Drug, Dental and Long-Term Disability Benefits

The University of Pennsylvania has committed itself to pay certain medical and prescription drug claims, dental benefits and long-term disability benefits incurred under the terms of the Plan on a self-insured basis.

The Plan also has a contract with Aetna, Inc. to pay medical claims incurred under the terms of the contract. The total premiums paid for the plan year ending June 30, 2006 were $92,296.

Vision Benefits

The Plan has a contract with Highmark Blue Shield Vision Plan to pay vision claims incurred under the terms of the contract. The total premiums paid under this contract for the plan year ending June 30, 2006 were $531,607.

Because it is a so-called “experience-rated” contract, 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, 2006, the premiums paid under such “experience-rated” contract were $531,607 and the total of all benefit claims paid under the experience-rated contract during the plan year was $424,269.

Life Insurance Benefits

The Plan has a contract with Aetna Life Insurance Company to pay life insurance, dependent life insurance and accidental death and dismemberment claims incurred under the terms of the contract. The total premiums paid under this contract for the plan year ending June 30, 2006 were $3,894,257.

Long-Term Care Benefits

The Plan has a contract with John Hancock Life Insurance Company to pay Long-Term care claims incurred under the terms of the contract. The total premiums paid under this contract for the short plan year ending June 30, 2006 were $463,640.

Your Rights To Additional Information

You have the right to receive a copy of the full annual report, or any part thereof, upon request. Insurance information is included in this annual report.

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 legally protected right under ERISA to examine the annual report 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 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 Trustees of the University of Pennsylvania, EIN 23-1352685, for the period July 1, 2005 through June 30, 2006. 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 $6,836,918. These expenses included $1,051,767 in administrative expenses and $5,785,151 in benefits paid to participants and beneficiaries. A total of 5,868 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 $166,605,087 as of June 30, 2006, compared to $156,465,804 as of July 1, 2005. During the plan year the Plan experienced an increase in its net assets of $10,139,283. 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 $16,976,201, including gains of $7,489,170 from the sale of assets, earnings from investments of $9,384,205 and other income of $102,826.

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:

1. An accountant’s report;

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

3. Information regarding the Master Trust; and

4. Actuarial information regarding the funding of the 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 report 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.