Summary Annual Report
Retirement, Health and Other Benefits

Summary Annual Reports for the Retirement Plan for Faculty and Executive, Professional and Administrative Staff, TIAA/CREF Tax Deferred Annuity (Supplemental Retirement Annuities) Plan, Health Benefits Program for Eligible Employees of the University of Pennsylvania and the Dependent Care Expense Account for Plan Year ending December 31, 1994.

This is a summary of the annual reports for the Plans named above of the University of Pennsylvania for the Plan Year beginning January 1, 1994 and ending December 31, 1994. 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 ending December 31, 1994 have been combined. Consequently portions of this summary may refer to plans in which you are not currently participating. If you are uncertain about your participation, please consult your 1994 Benefits Statement mailed to you last March with your Open Enrollment Packet or contact the Benefits Office at (215) 898-7282.

Retirement Plan for Faculty and Executive,
Professional and Administrative Staff

Funds contributed to the Plan are allocated toward the purchase of individual annuity contracts issued by Teachers' Insurance Annuity Association of America/College Retirement Equities Fund (TIAA/CREF) and individually owned fully funded custodial accounts sponsored by the Vanguard Group of Investment Companies and the Calvert Group. The total premiums paid for the plan year ending December 31, 1994 for TIAA/CREF were $27,776,941.11.*

Supplemental Retirement Annuities:
Basic Financial Statement

Funds contributed to the Plan are allocated toward the purchase of individual annuity contracts issued by Teachers' Insurance Annuity Association of America/College Retirement Equities Fund (TIAA/CREF). The total premiums paid for the plan year ending December 31, 1994 were $2,530,193.23*.

Health Benefits Program:
Insurance Information

The Plan has contracts with Independence Blue Cross/Pennsylvania Blue Shield and with four health maintenance organizations (HMOs) of the Delaware Valley to pay all health insurance claims covered under the terms of the Plan. The total premiums paid for the plan year ending December 31, 1994 were $ 29,603,615.83.

Because the Independence Blue Cross/Pennsylvania Blue Shield contracts are so-called "experience rated" contracts, as opposed to most of the HMO contracts which are "community rated" contracts, the Independence Blue Cross/Pennsylvania Blue Shield premium costs are affected directly by the number and size of claims the University participants "experience". Of the total $29,603,615.83 premiums paid, a total of $17,581,616** were paid under Independence Blue Cross/Pennsylvania Blue Shield "experience rated" contracts and a total of $18,585,769 benefit claims were charged by Independence Blue Cross/Pennsylvania Blue Shield under these "experience rated" contracts for the plan year ending December 31, 1994.

Dependent Care Expense Account

The Trustees of the University of Pennsylvania maintain a program providing reimbursement of dependent care expenses funded through salary reduction agreements for full-time and part-time faculty and staff. The University provides these benefits in accordance with the terms of the Plan.

Your Rights to Additional Information

You have the right to receive a copy of the full annual reports, or any part thereof, on request. Insurance information is included in those reports. To obtain a copy of a full annual report, or any part thereof, write or call the office of the Vice President of Human Resources, Room 538 A, 3401 Walnut Street, Philadelphia, Pennsylvania 19104, (215) 898-1331, who is the Plan Administrator. The charge for the full annual report for the Health Benefits Program will be $1.50; the charge for each other full annual report will be $2; the charge for a single page will be 25 cents.

You also have the legally protected right to examine the annual reports at the University of Pennsylvania, Benefits Office, Room 527 A, 3401 Walnut Street, Philadelphia, Pennsylvania 19104.

You also have the right to examine the annual reports at the U.S. Department of Labor in Washington, D.C. or to obtain copies from the U.S. Department of Labor upon payment of copying costs. Request to the Department should be addressed to Public Disclosure Room, N4677, Pension and Welfare Benefit Programs, Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20216.

-- Office of Human Resources/Benefits

* This figure does not include payments to the Vanguard Group and the Calvert Group. Payments to the Vanguard Group were $17,388,063 of which $9,059,528 comprised institutional contributions. Payments to the Calvert Group were $876,040 of which $485,700 comprised institutional contributions.

** This figure represents actual payments made in 1994. It includes 1993 premiums paid in 1994 and excludes 1994 premiums paid in 1995.