OF RECORD Summary Annual Reports
Life Insurance Program, Dental Plans, and
Retirement Allowance Plan of
the University of Pennsylvania
for the Plan year ended June 30, 1998.
This is a summary of the annual reports for the University of Pennsylvania Plans named above for the Plan Year beginning July 1, 1997 and ending June 30, 1998. 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, 1998 have been combined. Consequently, portions of this summary may refer to Plans in which you are not currently participating.
Life Insurance Program of the University of Pennsylvania
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, 1998 were $3,051,249.
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, 1998, the premiums paid under the experience rated contract during the Plan year were $3,051,249, and the total of all benefit claims charged under the experience rated contract during the Plan year was $3,778,690.
Dental Plan of the University of Pennsylvania --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, 1998.
Dental Plan of the University of Pennsylvania --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, 1998.
Retirement Allowance Plan of the University of Pennsylvania:
Basic Financial Statement
Benefits under this Plan are provided through a trust with Bankers Trust Company. Plan expenses were $4,539,144. These expenses include $329,754 in administrative expenses and PBGC premiums and $4,209,385 in benefits paid to Plan participants and beneficiaries. A total of 6,091 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 $136,687,238 as of June 30, 1998, compared to $124,125,153 as of June 30,1997. During the Plan year, the Plan experienced an increase in its net assets of $12,562,085. 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.
--Division of Human Resources
Almanac, Vol. 45, No. 29, April 20, 1999