HR: Summary Annual Reports for the University of Pennsylvania

(for the period January 1, 2015 through December 31, 2015)

Basic Plan

This is a summary of the annual report of The University of Pennsylvania Basic Plan (Plan No. 028) sponsored by the University of Pennsylvania, EIN: 23-1352685, for the period January 1, 2015 through December 31, 2015. This 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 unallocated insurance contracts and a trust fund. Plan expenses were $17,700,268. These expenses included $6,544 in administrative expenses and $17,693,724 in benefits paid to participants and beneficiaries. A total of 22,407 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 $721,672,541 as of December 31, 2015, compared to $687,608,139 as of January 1, 2015. During the plan year the plan experienced an increase in its net assets of $34,064,402. This increase includes net unrealized depreciation 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 $52,872,440, including employer contributions of $48,464,618, employee rollover contributions of $2,406,847, gains from investments of $1,947,974 and other income of $53,001.

Matching Plan

This is a summary of the annual report of The University of Pennsylvania Matching Plan (Plan No. 001) sponsored by the University of Pennsylvania, EIN: 23-1352685, for the period January 1, 2015 through December 31, 2015. This 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 unallocated insurance contracts and a trust fund. Plan expenses were $165,842,077. These expenses included $31,073 in administrative expenses and $165,811,004 in benefits paid to participants and beneficiaries. A total of 23,963 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 $3,814,913,677 as of December 31, 2015, compared to $3,811,200,104 as of January 1, 2015. During the plan year the plan experienced an increase in its net assets of $3,713,573. This increase includes net unrealized depreciation 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 $169,555,650, including employer contributions of $60,006,555, employee contributions of $63,412,657, employee rollover contributions of $11,472,605, earnings from investments of $33,688,387 and other income of $975,446.

Supplemental Retirement Annuity Plan

This is a summary of the annual report of 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, 2015 through December 31, 2015. This 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 unallocated insurance contracts and a trust fund. Plan expenses were $32,635,205. These expenses included $9,749 in administrative expenses and $32,625,456 in benefits paid to participants and beneficiaries. A total of 23,723 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 $922,588,956 as of December 31, 2015, compared to $900,779,777 as of January 1, 2015. During the plan year the plan experienced an increase in its net assets of $21,809,179. This increase includes net unrealized depreciation 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 $63,301,781 including employee contributions of $45,747,738, employee rollover contributions of $14,621,745, gains from investments of $2,761,202 and other income of $171,096.

Health and Welfare Plan for Retirees and Disabled Employees

(for the period January 1, 2015 through December 31, 2015)

This is a summary of the annual report of the University of Pennsylvania Health and Welfare Plan for Retirees and Disabled Employees  (Plan No. 530), sponsored by The Trustees of the University of Pennsylvania, EIN 23-1352685 for the period that began on January 1, 2015 and ended on December 31, 2015. 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, Dental and Prescription Drug Benefits

The Plan has contracts with Aetna Health Inc., Keystone Health Plan East, Amerihealth and Metropolitan Life Insurance Company to pay medical and dental claims incurred under the terms of the contracts. The total premiums paid for the plan year ending December 31, 2015 were $933,764.

Basic Financial Information

The value of Plan assets, after subtracting liabilities of the Plan, was $355,132,650 as of December 31, 2015, compared to $352,166,486 as of January 1, 2015. During the plan year the Plan experienced an increase in its net assets of $2,966,164. This increase includes net unrealized 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 assets at the beginning of the year or the cost of assets acquired during the year. The Plan had total income of $23,565,512 including employee contributions of $5,922,260, employer contributions of $28,391,718 and losses from investments of $10,748,466.

Plan expenses were $20,599,348. These expenses included $2,853,907 in administrative expenses and $17,745,441 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, 2015 were $319,658.

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. An accountant’s opinion;

2. Financial information;

3. Information on payments to service providers;

4. Assets held for investment; and

5. Insurance information.

To obtain a copy of the full annual report, or any part thereof, write to 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, or call (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.

Your Rights to Additional Information for Basic, Matching and Supplemental Retirement Annuity Plans

Under ERISA, you have the right to receive a copy of any of these full annual reports, or any part thereof, upon request. The items listed below are included in that report for the University of Pennsylvania Basic, Matching and Supplemental
Retirement Annuity Plans

1. An accountant’s opinion;

2. Financial information;

3. Information on payments to service providers;

4. Assets held for investment;

5. Insurance information; and

6. Information regarding pooled separate accounts in which the plan participates.

To obtain a copy of the full annual report, or any part thereof, write to 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, or call (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 for the 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.