Defined Benefit Pension Plan SPD - uphs

Summary Plan Descriptionfor the Retirement Planof the Hospital of theUniversity of Pennsylvania,Presbyterian Medical Center and thePennsylvania HospitalJuly 2008

IntroductionRegardless of what retirement means to you now--or will mean to you when you get there--just abouteverybody worries about the same thing: financial security. Just how much money will you need to befinancially secure and independent at retirement? This depends on many things--most of which aredetermined by your own personal situation. In your planning, remember that many work-related expensesdrop out of your financial picture when you retire. If you have a family, your children will most likely begrown. You will no longer pay Social Security taxes when you stop working, and your other taxesprobably will be less. So how much of your working income will you have to replace?Obviously, based on individual responsibilities and potential sources of retirement income, each person'sfinancial needs in retirement will differ. But two planning considerations apply in everyone's situation:• First, aim for enough income to maintain your basic lifestyle.• Second, begin making your retirement plans early.Few people enjoy a comfortable retirement by accident; it takes careful thought and planning. TheRetirement Plan of the Hospital of the University of Pennsylvania, Presbyterian Medical Center and thePennsylvania Hospital (the "Plan") described in this summary plan description can help you meet theretirement goals you set for yourself.Benefits from the Plan could be an important part of your retirement income and you should understandhow the Plan works. This summary plan description describes the Plan and should be retained as part ofyour permanent records. Every effort has been made to ensure that this description of the Plan accuratelydescribes the Plan's relevant provisions, but if there is a difference between this summary and the Plandocument, the terms of the Plan document always govern. If you have any questions about the Plan, youshould contact the Benefits Office of the University of Pennsylvania Health System ("UPHS") at theaddress and number set forth in the "General Information" section.This booklet, which is the Plan's official "Summary Plan Description" or "SPD," gives you a brief outline ofthe Plan, as in effect on January 1, 2008. However, if you retired or your employment terminated prior toJanuary 1, 2008, your benefits may differ from the benefits described in this SPD. Also, although this SPDis updated periodically, it may not reflect all recent amendments or changes in law applicable to the Plan.Ask about changes in the Plan before you make decisions based upon the information in this SPD.Please review the entire SPD because if you take parts of it out of context, it could appear to bemisleading. More importantly, the Plan is detailed and not every rule that may apply to you can besummarized here. This SPD applies to general situations and not to your particular circumstances. If youhave any questions, please contact the UPHS Benefits Office.The Plan originally covered only eligible employees of the Hospital of the University of Pennsylvania("HUP"), but it was amended as of June 30, 2001 to cover employees of the Presbyterian Medical Center("PMC") and the Pennsylvania Hospital ("PAH"). At the same time, the Presbyterian Medical Center ofPhiladelphia Pension Plan (the "PMC Plan") and the Pennsylvania Hospital Retirement Plan (the "PAHPlan") were merged into the Plan.The Plan was amended again as of July 1, 2002 to "standardize" the benefits provided to all Planparticipants employed by HUP, PMC and PAH. In most instances, the Plan was standardized by takingthe most favorable features of each individual pre-merger plan and extending them to all Plan participants.As such, most Plan participants will receive better benefits under the merged, standardized Plan (forexample, an improved benefit formula or more distribution options, etc.). A small number of Planparticipants, however, may not see an immediate improvement in their Plan benefits. IMPORTANT:Under no circumstances, however, will a Plan participant's benefit under the standardized Plan beless than the benefit accrued by such participant under an individual pre-merger plan before thestandardization took effect. If you have any questions about the standardization of the Plan or any otherPlan changes, you should contact the UPHS Benefits Office at the address and number set forth in the"General Information" section.1

How the Plan is AdministeredThe Plan is administered by the "Committee", a group of individuals appointed by HUP's ExecutiveDirector to administer the Plan.The Committee is responsible for all matters relating to the Plan, including, but not limited to: interpretingthe Plan's provisions, resolving questions about Plan eligibility, making decisions about claims for benefits,and establishing rules and procedures for Plan operations. The Committee may delegate responsibility forany aspect of Plan administration to other individuals or entities. Expenses related to the administration ofthe Plan are paid from the Plan's trust fund unless they are paid by one of the "Participating Employers"(described below).The Committee has delegated much of the authority for day-to-day administration of the Plan to the UPHSBenefits Office. If you have any questions about the Plan or Plan administration, you should contact theUPHS Benefits Office or the Committee at the telephone number and address listed in the "GeneralInformation" section.How The Plan WorksYour benefit under the Plan generally is based on two factors: (1) your years of "Benefit Accrual Service"under the Plan; and (2) your "Final Average Earnings". Your right to receive this benefit depends upon thelength of your service with a Participating Employer or a Related Employer and whether you are fully"vested" when you terminate employment. All of these concepts and terms are described in more detailbelow.To provide benefits under the Plan, the University established a separate trust fund (administered by the"Trustee" as designated in the "General Information" section) to hold the Plan's assets. The ParticipatingEmployers periodically make contributions to the Plan in accordance with the minimum funding standardsrequired pursuant to ERISA and the Internal Revenue Code to fund the Plan's benefits. The amount ofthese contributions is determined by the Plan's actuaries. Employees are not required or permitted tomake contributions to the Plan. All Plan benefits are paid from the Plan's trust fund and not by aParticipating Employer or any other entity.Who Participates In The PlanAll employees of the Participating Employers who are "Covered Employees" are eligible to participate inthe Plan after satisfying the Plan's eligibility requirements as described below.Covered EmployersAs described above, there are certain UPHS organizations who have adopted the Plan for their eligibleemployees. These organizations are referred to as "Participating Employers." Currently, HUP, PAH, andPMC are the only Participating Employers.Other UPHS organizations who have not adopted the Plan for their employees (for example, the Universityof Pennsylvania, Clinical Care Associates, Phoenixville Hospital, etc.) are not Participating Employers andare referred to throughout this summary simply as "Related Employers." This difference between"Participating" and "Related" Employers can be important, particularly in situations involving eligibility andcrediting of service issues. These situations are described in more detail below.Covered EmployeesThe following groups of employees are Covered Employees and are eligible to participate in the Plan uponthe satisfaction of the Plan's eligibility requirements:• Covered Employees of HUP – All regular exempt and non-exempt employees of HUP are coveredunder the Plan except (1) an employee whose employment is incidental to his educational program,and (2) employees assigned to Community Radiology Associates of UPHS, Motion Physical Therapy,or Penn Medicine at Radnor.• Covered Employees of PMC – All regular exempt and non-exempt employees of PMC are coveredunder the Plan.2

• Covered Employees of PAH – All regular exempt and non-exempt employees of PAH are coveredunder the Plan except any employee of the Benjamin Franklin Clinic.In addition to the various exclusions described above, the following groups of employees are NOTCovered Employees and are NOT eligible to participate under the Plan under any circumstances:• Residents, Fellows, Interns, Etc. – Employees who are residents, fellows, attending physicians,interns, students or any such other similar category of employees.• Collectively Bargained Employees – Employees covered by the terms of a collective bargainingagreement (unless the collective bargaining agreement explicitly provides for participation in the Plan).• Leased Employees – Employees who are leased employees.• Employees Covered Under Other Plans – Employees employed by a division or affiliate of theUniversity or UPHS who are covered by any other retirement plan sponsored by such division oraffiliate.• Certain Part-Time and Temporary Employees – Part-time or temporary employees who never accrue1,000 or more Hours of Service during either the first 12 months of service with a ParticipatingEmployer (or a Related Employer) or during any subsequent Plan Year.• Independent Contractors – Individuals classified by a Participating Employer or a Related Employer asindependent contractors or non-employees.• Non-Resident Aliens – Non-resident aliens with no U.S. source income.• Certain Executive Level Employees – Certain executive-level employees who are excluded from Planparticipation from time to time.Eligibility RequirementsIf you are a Covered Employee, you are eligible to participate in the Plan as of the January 1 or July 1following the date you reach age 21 and complete a year of Eligibility Service. (Eligibility Service isdiscussed in the "Service Under the Plan" section.)Eligibility and ReemploymentIf you terminate employment after becoming a Plan participant as described above and are laterreemployed as a Covered Employee before you have incurred five or more consecutive Breaks in Service(the term "Break in Service" is discussed in the "Service Under the Plan" section), you will immediatelyparticipate in the Plan upon your reemployment. If you terminate employment after becoming a Planparticipant (or after satisfying the Plan's eligibility requirements) as described above and you are fullyvested when you leave (See the "Deferred Vested Benefit" section), you will become a Plan participantimmediately upon your reemployment as a Covered Employee. Otherwise, if a Participating Employerreemploys you as a Covered Employee after a Break in Service, you generally will become a Planparticipant only after you satisfy the Plan's eligibility requirements for a new employee.Dual EmploymentSome employees are employed by a Participating Employer and a Related Employer at the same time.Such employees will be covered by either the Plan or the retirement plan of the Related Employer, but notby both plans. In these situations, the Committee will determine which plan will cover the employee byreference to the applicable employment and personnel policies of the Participating Employer and theRelated Employer. This determination generally will be based upon which employer for whom theemployee performs the most work, but other factors also may be taken into account. If you havequestions about these dual employment situations, you should contact the UPHS Benefits Office at theaddress and number set forth in the "General Information" section.3

Service Under The PlanService is an important concept under the Plan because it is used to determine your eligibility toparticipate under the Plan, your "vested" interest in Plan benefits, your eligibility for early retirementbenefits, and the amount of your Plan benefits. Your service generally is based upon the Hours of Serviceyou accrue during your period of employment with a Participating Employer or a Related Employer.Counting service under the Plan can be complicated, particularly if you terminate employment and arelater reemployed, if you transfer to a different job status or to a Related Employer, or if you are absentfrom active employment for some reason (for example, a period of disability). Thus, if you have questionsabout your service under the Plan, you should contact the UPHS Benefits Office.Important Terms to UnderstandAs you review this portion of the summary relating to service, you should understand what the followingterms mean:• Hours of Service – You will be credited with an Hour of Service for each hour for which you are paid orentitled to be paid by a Participating Employer or a Related Employer for the performance of your jobduties. If you are paid for non-working periods such as vacation, holiday, and sick time, you willreceive credit for some or all of the Hours of Service for those periods. You will also be credited withHours of Service during certain periods of absence as long as you return to employment within thetime periods prescribed by your Participating Employer's leave policies or by applicable law. Forexample, you will receive Hours of Service for a military leave of absence, a leave of absence duringwhich you receive benefits under a UPHS-sponsored long-term disability program before reachingretirement age, or an authorized leave of absence of up to six months. You will not receive credit forHours of Service for payments that reimburse you for medical expenses or for periods during whichyou are receiving workers' compensation, unemployment compensation or disability benefits under aprogram required by applicable law. If your Participating Employer does not track your actual hoursworked, you shall be credited with 190 Hours of Service for each calendar month during which youwork at least one Hour of Service.• Breaks in Service – You generally will incur a Break in Service for any service counting period forwhich you fail to complete more than 500 Hours of Service. Certain absences (for example, anabsence due to pregnancy or the birth/adoption of your child or an absence due to leave under theFamily Medical Leave Act), however, will not immediately cause a Break in Service. If you are absentfor one of these reasons, you should contact the UPHS Benefits Office to determine how your servicewill be affected.Eligibility ServiceThe amount of Eligibility Service you have will determine when you can participate in the Plan. You willreceive a year of Eligibility Service for a service counting period in which you complete 1,000 or moreHours of Service with a Participating Employer or a Related Employer. For purposes of determiningEligibility Service, the service counting period is the 12-month period beginning on the date you firstcomplete an Hour of Service and then each Plan Year beginning thereafter.Vesting ServiceThe amount of your Vesting Service will determine your "vested" or ownership interest in your Planbenefits (see the "Vesting" section for more information about vesting). You will be credited with a year ofVesting Service for each service counting period in which you complete 1,000 or more Hours of Servicewith a Participating Employer or a Related Employer. The Plan recently changed service counting periodsfrom a fiscal year (July 1 to June 30) to a calendar year (January 1 to December 31). This change iseffective as of January 1, 2003. Employees who were affected by this change received additionalinformation about the impact of the change.4

Benefit Accrual ServiceThe amount of Benefit Accrual Service you have under the Plan will be used to determine the amount ofyour Plan benefits. You generally will be credited with a year of Benefit Accrual Service for each servicecounting period in which you complete 1,000 or more Hours of Service as a Covered Employee. The Planrecently changed service counting periods from a fiscal year (July 1 to June 30) to a calendar year(January 1 to December 31). This change is effective as of January 1, 2003. Employees who wereaffected by this change received additional information about the impact of the change.IMPORTANT: Only service as a Covered Employee counts as Benefit Accrual Service under thePlan. As such, any service you may earn with a Related Employer may count as Eligibility orVesting Service under the Plan but generally WILL NOT count as Benefit Accrual Service.Service Before "Standardization"Service that you accrued with HUP, PMC or PAH before the Plan was standardized as of July 1, 2002 willbe determined in accordance with the terms of the individual plan that covered you before thestandardization took effect.Service and ReemploymentIf you terminate employment and are later reemployed, under some circumstances, the Vesting andBenefit Accrual Service that you accrued before your termination of employment will be restored to you.Vesting and Benefit Accrual Service will be restored to you upon your reemployment if (1) you were fullyvested (See the "Deferred Vested Benefit" section) when you terminated employment, or (2) you arereemployed by a Participating Employer or a Related Employer before you incur five or more consecutiveBreaks in Service. Any such restored Vesting and Benefit Accrual Service will be added to any Vestingand Benefit Accrual Service you earn after your reemployment. (Note: If you received a cash-out of yourbenefit upon your termination of employment (see the "Cash-Out of Small Benefit" section), you will notreceive credit for your prior Benefit Accrual Service upon your reemployment.)Service and TransfersIf you transfer employment from one Participating Employer to another, you will continue to accrue serviceunder the general terms of the Plan as described above. If you transfer to or from employment with aRelated Employer, your service will be determined as follows:• Transfers to a Participating Employer – If you are actively participating in a defined benefit plan of aRelated Employer and you transfer employment to a Participating Employer, all of your coveredservice with the Related Employer will be treated as Eligibility, Vesting and Benefit Accrual Serviceunder the Plan. However, as described in the "Special Situations" section, your Plan benefit will beadjusted to reflect the benefit that you are eligible to receive under the defined benefit plan of theRelated Employer. This provision is designed to minimize the impact of an employment transfer onyour Plan benefits, but it will only apply if the Related Employer from which you transfer sponsors adefined benefit plan that is very similar to the Plan.• Transfers from a Participating Employer – If you are actively participating in the Plan and you transferto a Related Employer, you will stop accruing Benefit Accrual Service under the Plan as of the date ofthe transfer. However, you will continue to accrue Eligibility and Vesting Service as long as youcontinue to work with the Related Employer. Also, the defined benefit plan of the Related Employermay contain provisions similar to the Plan's provisions (as described in the previous paragraph) thatminimize the impact of an employment transfer. If you are contemplating a transfer to a RelatedEmployer, you should contact the UPHS Benefits Office to determine how your Plan benefits will beaffected.5

Retirement BenefitsAssuming that you meet the necessary eligibility requirements, you may retire under the Plan at an early,normal or postponed retirement date. Even if you terminate employment before these retirement dates,you may still be eligible to receive benefits if you are fully vested under the Plan (see the "Deferred VestedBenefits" section).• Normal Retirement – You may retire with a normal retirement benefit upon reaching your "NormalRetirement Age" while employed by a Participating Employer or any Related Employer. Your NormalRetirement Age is the latest of your 65 th birthday or the 5 th anniversary of the date you startedparticipating in the Plan.• Early Retirement – You may retire with an early retirement benefit upon reaching your "EarlyRetirement Age" while employed by a Participating Employer or any Related Employer. Your EarlyRetirement Age is any date after you have reached age 55 and completed five or more years ofVesting Service.• Postponed Retirement – You may retire from a Participating Employer or any Related Employer with apostponed retirement benefit at any time after reaching your Normal Retirement Age. You shouldreview the "Special Situations" section for more information about how your benefits will bedetermined if you postpone your retirement beyond Normal Retirement Age.Calculating Your Retirement BenefitNormal Retirement BenefitThe amount of any retirement benefit you may receive under the Plan will depend upon a number offactors (your Final Average Earnings, your years of Benefit Accrual Service, your Federal Social SecurityCompensation Level, and when you retire or terminate employment). This section describes these termsand factors in more detail and includes examples to show you how retirement benefits are calculatedunder the Plan.As described in the examples below, your monthly normal retirement benefit is the sum of your "RegularCompensation Benefit" and your "Excess Compensation Benefit" (if any) as follows:• Regular Compensation Benefit – Your Regular Compensation Benefit is equal to your years of BenefitAccrual Service multiplied by your Final Average Earnings multiplied by a Percentage Multiplier of1.25%.• Excess Compensation Benefit – Your Excess Compensation Benefit is equal to your years of BenefitAccrual Service not in excess of 40 multiplied by your Final Average Earnings (if any) that exceed yourFederal Social Security Compensation Level multiplied by a Percentage Multiplier of .50%.Once your Regular Compensation Benefit and your Excess Compensation Benefit (if any) are calculatedand added together, the total amount is divided by 12 to determine the amount of the benefit in the form ofmonthly payments. For purposes of applying this benefit formula, the following terms have the followingmeanings:• Years of Benefit Accrual Service – Your years of Benefit Accrual Service are determined inaccordance with the service provisions above.• Final Average Earnings – Your Final Average Earnings is the average of your five highest calendaryears of earnings as a Covered Employee up to a compensation limit imposed under Federal tax laws(this compensation limit is $230,000 for the year 2008, but is adjusted periodically by the Federalgovernment). Your earnings will not include certain non-regular forms of compensation, such asdisability payments, workers' compensation payments, the value of fringe benefits, deferredcompensation payments, etc. However, your earnings will include any "elective deferrals" that arededucted from your pay on a pre-tax basis (for example, for contributions to a 403(b) plan or to pay forqualifying health or welfare benefits).6

• Federal Social Security Compensation Level – The Social Security Administration establishes anannual compensation amount (referred to as the "taxable wage base"), which is the compensationlevel taken into account each year in determining the level of your and your employer's Social Securitycontributions. Any compensation you may earn in a given year that exceeds the taxable wage base isdisregarded in determining Social Security contributions and will not create a larger Social Securityretirement benefit for you. Because you do not receive any Social Security retirement benefits for thisexcess compensation, the Plan provides you with an additional benefit if your Final Average Earningsexceeds your "Federal Social Security Compensation Level." Your Federal Social SecurityCompensation Level generally is the average of the taxable wage bases for the 35-year period endingwith the year in which you reach Social Security Retirement Age (which currently is age 65, age 66, orage 67 depending upon when you were born).Examples of Retirement Benefit CalculationsExample 1: Assume that Richard started to work for HUP at age 35 and retires at age 65 with 30 years ofBenefit Accrual Service. Richard retires in 2005. During his five highest-paid years with HUP, hiscompensation was as follows:$21,000 + 23,000 + 25,000 + 28,000 + 30,000 = $127,000When Richard's five highest-paid years, as indicated above, are added together and divided by five, hisFinal Average Earnings is $25,400 ($127,000/5 = $25,400). This Final Average Earnings is less than theapplicable Federal Social Security Compensation Level, which is $51,348 for 2007. This means thatRichard will not receive an Excess Compensation Benefit. Given that Richard's Final Average Earnings is$25,400 and that he has 30 years of Benefit Accrual Service, his monthly normal retirement benefit wouldbe calculated as follows:Richard's Final Average Earnings $25,400multiplied byPercentage Multiplier of 1.25%multiplied byRichard's Years of Benefit Accrual Service 30divided by12 months 12equalsMonthly Plan Benefit $793.757

Example 2: Assume that Alan started to work for PMC at age 35 and retires at age 65 with 30 years ofBenefit Accrual Service. Alan retires in 2005. During his five highest-paid years with PMC, hiscompensation was as follows:$54,000 + 56,000 + 58,000 + 60,000 + 62,000 = $290,000When Alan's five highest-paid years, as indicated above, are added together and divided by five, his FinalAverage Earnings is $58,000 ($290,000/5 = $58,000). This Final Average Earnings amount is more thanthe applicable Federal Social Security Compensation Level, which is $51,348 for 2007. This means thatAlan will receive an Excess Compensation Benefit. His monthly normal retirement benefit would becalculated as follows:Alan's Regular Compensation BenefitAlan's Final Average Earnings $58,000multiplied byPercentage Multiplier 1.25%multiplied byAlan's Years of Benefit Accrual Service 30divided by12 months 12equalsMonthly Regular Compensation Benefit $1,812.50PLUSAlan's Final Average EarningsAlan's Excess Compensation BenefitThat Exceed the Federal Social SecurityCompensation Level $6,652multiplied byPercentage Multiplier .50%multiplied byAlan's Years of Benefit Accrual Service 30divided by12 months 12equalsMonthly Excess Compensation Benefit $83.15EQUALSAlan's Total Retirement BenefitAlan's Regular Compensation Benefit $1,812.50plusAlan's Excess Compensation Benefit__$83.15equalsAlan's Total Monthly Retirement Benefit $1,895.658

Early Retirement BenefitIf you retire early (any time after age 55 if you have five or more years of Vesting Service), you can chooseto begin receiving your monthly benefits before you reach your Normal Retirement Age. If you choose tostart your benefits before Normal Retirement Age, however, your benefits will be reduced because thePlan may have to pay benefits to you over a longer period of time. Your retirement benefits will bereduced by:• First 60 Months – 5/9 of 1% for each of the first 60 months that your benefits start before your NormalRetirement Age• Next 60 Months – 5/18 of 1% for each of the next 60 months that your benefits start before yourNormal Retirement AgeBy way of example, early retirees will receive the following percentages of their normal retirement benefit:Age 55 - 50%Age 60 - 66.67%Age 62 - 80%Age 63 - 86.67%Age 64 - 93.33%Example 3: This example shows how the Plan's benefit formula would work for someone who retiresearly. Assume that Anne retires at age 55 with 25 years of Benefit Accrual Service, that her Final AverageEarnings is $21,300, and that she elects to receive her retirement benefit immediately. Given thesefactors, Anne's monthly early retirement benefit would be calculated as follows:Anne's Final Average Earnings $21,300multiplied byPercentage Multiplier of 1.25% 1.25%multiplied byAnne's Years of Benefit Accrual Service 25multiplied by50% Early Retirement Reduction .50%divided by12 months 12equalsMonthly Plan Benefit $277.34The example shows that Anne would receive a monthly benefit of $277.34 for life, beginning at age 55.Note that if Anne had elected to retire at age 55 but postponed the start of her benefits until NormalRetirement Age, she would have received a full monthly normal retirement benefit of $554.69 (not reducedby 50% for early retirement).Postponed Retirement BenefitYou may continue to work beyond your Normal Retirement Age. If you delay retirement beyond yourNormal Retirement Age, your monthly benefit generally will start being paid to you when you retire.However, there may be some circumstances in which you can start receiving your benefits at your NormalRetirement Age if you are engaged in part-time employment. (See the "Special Situations" section formore information about in-service distributions on or after Normal Retirement Age). Benefits are requiredto begin no later than April 1 following the calendar year in which you reach 70½ or if later, terminateemployment with a Related Employer ("required beginning date"). You should also be sure that youunderstand how your benefits will be calculated if you delay payment until after Normal Retirement Age.(See the "Special Situations" section for information about suspension of benefits). If you have anyquestions about how these Plan provisions work, you should contact the UPHS Benefits Office at theaddress and phone number set forth in the "General Information" section.9

Disability BenefitsIf you meet all of the Plan's requirements, you may be eligible to receive disability benefits under the Planif you are fully vested and you become disabled while you are employed by a Participating Employer. ThePlan does not pay monthly benefits during your disability; rather, you continue to earn Vesting and BenefitAccrual Service while you are disabled. You will continue to earn Vesting and Benefit Accrual Service aslong as you are receiving benefits under your Participating Employer's long-term disability program. Youwill stop earning Vesting and Benefit Accrual Service under the Plan at the earliest of your:• Benefit Payment Date – The date as of which you first begin receiving benefit payments from the Plan.• Disability Ends – The date you are no longer disabled as determined under your ParticipatingEmployer's long-term disability program.• Death – The date of your death.If you recover from your disability (as determined under your Participating Employer's long-term disabilityprogram) and resume employment with a Participating Employer or a Related Employer before yourNormal Retirement Age, the period of your disability up to your resumption of employment will beconsidered as years of Vesting and Benefit Accrual Service under the Plan. For purposes of calculatingyour retirement benefit, your assumed rate of earnings during your period of disability will be based uponthe earnings you were receiving before your disability.If you do not resume employment with a Participating Employer or a Related Employer after recoveringfrom your disability, the period of your disability will be considered as years of Vesting and Benefit AccrualService under the Plan, but you will be considered to be terminated as of the date of your recovery fromyour disability. You may then be entitled to receive a benefit payable at your Normal Retirement Age or atan earlier date if you satisfy the requirements for early or deferred vested benefits.Deferred Vested BenefitsEven if you terminate employment before one of the retirement dates discussed above, you may still beeligible to receive benefits under the Plan if you are fully vested upon your termination of employment.The vesting requirements and the method for calculating deferred vested benefits are explained below.VestingYou will be vested in your Plan benefits when you have earned five years of Vesting Service.Calculating Deferred Vested BenefitsUnless your deferred vested benefit is "cashed-out" (see the "Cash-Outs of Small Benefits" section ), yourdeferred vested benefit ordinarily will be paid to you as of the date you would have reached your NormalRetirement Age had you remained employed. However, you may elect to begin receiving your deferredvested benefit on the first day of any month following the month in which you reach age 55.Your monthly-deferred vested benefit will be calculated in the same manner as normal retirement benefitsas described above. If you elect to start receiving your deferred vested benefits before your NormalRetirement Age, however, your deferred vested benefit will be reduced in the same manner as earlyretirement benefits as described above.Special SituationsMost Plan participants retire on their Early or Normal Retirement Age and begin receiving their benefitsunder the Plan shortly thereafter. However, there are special situations involving participants who (1)transfer to a Participating Employer from a Related Employer, (2) may want to start receiving their benefitswhile they are still employed, (3) delay retirement until after Normal Retirement Age, or (4) come back towork after terminating employment and starting to receive benefits. This section explains how the Planhandles these special situations.10

Benefit Adjustments for Transferred EmployeesParticipants who transfer from a Related Employer that sponsors a similar pension plan may be eligible toreceive additional service credit as described in the "Service and Transfer" section. The Plan benefit ofany such participant shall be reduced by the benefit accrued in the pension plan of the Related Employer.This service-crediting and offset approach keeps a participant's overall benefits "current" by including allof the participant's service in the Plan, but avoids "double-dipping" by making sure that service is onlycounted once under each plan.In-Service DistributionsWhen you reach Normal Retirement Age, you may elect to start receiving your benefits if you are engagedin (or you switch to) "part-time employment." Part-time employment generally means that you arescheduled to work less than 1,000 Hours of Service in a given year as determined under your ParticipatingEmployer's employment and personnel policies. If you start receiving benefits under this provision andyour employment becomes "full-time" (more than 1,000 Hours of Service in a given year), your benefits willbe "suspended" as described below until you return to part-time employment or terminate employmententirely.If you terminate employment, start receiving your benefits, and are later reemployed, you may elect tocontinue receiving your benefits after your reemployment if you are engaged in part-time employment. Ifyou continue your benefits under this provision and your employment becomes full-time, your benefits willbe suspended as described below until you return to part-time employment or terminate employmententirely.Postponement of Retirement Past Normal Retirement AgeIf you postpone retirement past Normal Retirement Age (and do not start taking in-service distributions asdescribed above), your benefits will be suspended until you actually retire and begin receiving yourbenefits. The term "suspended" simply means that you will not start receiving your benefits until you retire.As long as you are working, you will continue to accrue benefits in accordance with the Plan's terms. Ifyou delay payment of your benefits beyond age 70½ (a statutory distribution date set forth in the InternalRevenue Code), your benefit will be increased when it is eventually paid to you to reflect the delayedpayment of your benefits.ReemploymentIf you terminate employment, start your benefits, and are later reemployed (and you do not continuereceiving in-service distributions as described above), your benefits will be suspended until you terminateemployment from your Participating Employer and all Related Employers. When your benefits start beingpaid to you again, your benefit will be based upon all of your Benefit Accrual Service (including service youearned before and after your reemployment), but your benefit will be reduced by the value of thedistributions you received prior to your reemployment. When your benefits start being paid to you again,you generally will not be able to elect a different form of payment unless your subsequent retirementoccurs on or before your Normal Retirement Age.Approved Absence for Uniformed ServiceFederal law provides certain protections for an employee who returns to employment from an approvedabsence for uniformed service (i.e., military duty). To the extent required by law, you will be credited withbenefit accruals and receive service credit during your absence for uniformed service (as if you hadremained actively employed and upon your return to active employment). If you are planning to leaveemployment to enter uniformed service, it is your obligation to provide advance notice to the Committee.11

Suspension of BenefitsAs described above, there are certain situations in which your benefits may be suspended if you continueworking beyond your Normal Retirement Age or if you are reemployed (or return to full-time employment)after starting your benefits. If your benefit payments are suspended, your benefits will start being paid toyou again whenever you terminate employment, or return to part-time employment. Also, as describedabove, the benefit payable to you may be reduced to take into account the benefit payments that you havealready received.Forms Of Benefit PaymentUnless your benefits are very small (see the "Cash-Outs of Small Benefits" section) and are paid to you ina single sum when you retire or terminate employment, your benefits will be paid in monthly paymentsunder one of the forms described below.Automatic Forms of PaymentUnless you elect an optional form of payment, your benefit automatically will be paid to you (dependingupon your marital status) in one of the following forms:• Unmarried Participants – If you are not married when your benefit begins, your benefit will be paid toyou in a "Single Life Annuity", which provides equal monthly payments to you for your lifetime only. Atyour death, all benefits will cease and any beneficiaries you may have will receive nothing.• Married Participants – If you are married when your benefit begins, your benefit will be paid to you asa "Qualified Joint and Survivor Annuity." A Qualified Joint and Survivor Annuity provides reduced,equal monthly payments to you during your lifetime and, if your spouse lives longer than you, to yourspouse for your spouse's lifetime. The monthly benefit payable to your spouse upon your death isequal to 50%, 75%, or 100% (as you may elect) of the monthly benefit paid to you during your lifetime.The monthly payment during your lifetime is reduced to provide for payments to your spouse afteryour death. The amount of this reduction will depend upon the joint and survivor annuity percentageyou choose (for example, the 100% survivor annuity will result in a larger reduction) and the age ofyour beneficiary. Although your monthly benefit payments are reduced, this payment form has thesame actuarial value as the Single Life Annuity described above.Optional Forms of PaymentIf you are unmarried, or if you are married and your spouse consents, you may elect to receive one of theoptional forms of payment described below. All of these optional forms of payment have the sameactuarial value as the Single Life Annuity for Unmarried Participants as described above. The optionalforms of payment available under the Plan are as follows:• Non-Qualified Joint and Survivor Annuity – A "Non-Qualified Joint and Survivor Annuity" is very similarto a Qualified Joint and Survivor Annuity except that you can designate a beneficiary other than yourspouse. If you elect a Non-Qualified Joint and Survivor Annuity option, you will receive reduced, equalmonthly payments during your lifetime. Upon your death, the beneficiary designated by you(assuming your designated beneficiary is still living at the time of your death) will receive equal,monthly payments for his/her lifetime. You are free to designate any individual as your beneficiary andyou may elect whether the payments to your beneficiary will be equal to 50%, 75% or 100% of thepayments you received before your death. Keep in mind, however, that the payments you receive willbe reduced to provide for payments to your beneficiary after your death. The amount of this reductionwill depend upon the joint and survivor annuity percentage you choose (for example, the 100%survivor annuity will result in a larger reduction) and the age of your beneficiary.• Single Life Annuity – If you are married, you may elect a Single Life Annuity as described above(provided, that your spouse consents). The Single Life Annuity will provide equal, monthly paymentsto you for your life and no payments to your spouse or any other beneficiary after your death.12

• Ten-Year Certain and Continuous Annuity – If you elect the "Ten-Year Certain and ContinuousAnnuity", you will receive equal, monthly payments for your lifetime and your payments will beguaranteed for a period of 120 months. If you die before you receive 120 payments, the remainingpayments will be made to your designated beneficiary. If you are still living after receiving all 120payments, you will continue to receive monthly payments until you die, but no payments will be madeto your beneficiary after your death. The monthly benefit payments you receive under this paymentoption will be reduced to provide these guaranteed payments.Cash-Outs of Small BenefitsIf the value of the vested benefit payable to you upon your termination of employment (or, the benefitpayable to your spouse upon your death) is $1,000 or less, your benefit will be cashed-out and paid to you(or your spouse) in a single sum as soon as practicable after your termination of employment (or yourdeath). No spousal consent is required, and annuity forms of payment are not available. Generally,federal income tax law requires 20% of a single sum distribution to be automatically withheld. However,you may defer federal income tax and avoid the 20% withholding with respect to any part of thedistribution that you directly roll over to a traditional IRA or to another employer's eligible retirement planthat accepts rollovers. Although you or your spouse will be able to elect a direct rollover of this single sum(see the "Direct Rollovers" section), you are not entitled to elect another form of payment or to deferdistribution until a later date.Direct RolloversSubject to procedures established by the Committee, you (or your spouse) may request that any cash-outof a small benefit be rolled over from the Plan to another employer's qualified eligible rollover plan thataccepts rollover contributions or to an individual retirement account or annuity ("IRA"), a qualified plan, aneligible deferred compensation plan, or an annuity contract. Special tax withholding rules apply to anyportion of such a distribution that is not rolled over directly to an eligible retirement plan (see the "TaxInformation" section).Electing Your Benefits and a Payment FormAround the time that you become eligible to begin receiving benefits under the Plan, at your request, youwill be provided with information about the various payment options, including the amount of your benefitpayable under each option. You will also be given an election form that you must complete and return tothe UPHS Benefits Office within the 30 to 90-day period before your benefits are to begin. Your benefitswill not begin until you submit the completed election form and it is processed by the UPHS BenefitsOffice, so it is very important for you to complete the election form in a timely manner. As you make yourelection and consider your payment options, you should keep some important points in mind:• Spousal Consent for Optional Payment Forms – If you are married and you elect an optional paymentform, your spouse must consent (in writing) to your election.• Changing Your Election – You can revoke your election at any time before your benefits begin, butyou cannot change your election after your benefits have begun.• Late Application for Early Retirement Benefits. If you apply for benefits after the earliest date on whichbenefit payments could have started, you will not receive retroactive payments and the monthlyamount of your benefit will NOT be increased to reflect any payments you could have received hadyou applied earlier.• Late Application for Normal Retirement Benefits. If you apply for benefits you may not be eligible tohave your benefits be paid retroactive to your normal retirement date. Instead, the amount of yourmonthly payments will be adjusted actuarially to reflect the fact that they started to be paid to you afteryour normal retirement date.13

• Death of Spouse or Beneficiary – If your Spouse or beneficiary dies after your benefits begin, theamount of your benefit payments will not change and you will not be able to designate someone elseto receive any survivor benefit that may be payable under the payment option you elected (but, if youelect the Ten-Year Certain and Continuous Annuity, you may designate a different beneficiary toreceive any remaining guaranteed payments). If you elect a payment option that provides survivorbenefits and your beneficiary dies before your retirement benefit payments begin, however, yourelection automatically will be cancelled and you will be able to select a new payment option and/ordesignate a new beneficiary.• Required Retirement Benefit – Because the Plan is designed to provide you with retirement income,you may not elect a payment option that is expected to provide you with less than 50% of the value ofyour benefit during your lifetime. This restriction will not affect you unless your beneficiary issubstantially younger than you.• No Surviving Beneficiary – If no designated beneficiary is surviving when a payment is to be made toa beneficiary, the periodic payments shall be made to the person or persons in the following classes ofbeneficiaries: (1) your surviving spouse, (2) your surviving children, in equal shares, (3) your survivingparents, (4) your surviving brothers and sisters, or (5) your executor.Death BenefitsIf you die after your benefit payments begin, the payment form you elected before your death willdetermine whether any benefits will be paid to your spouse or your beneficiary after your death.If you are fully vested and you die before your benefit payments begin, the Plan will provide a monthlydeath benefit to your surviving spouse or certified domestic partner; provided, that you are legally marriedat the time of your death. Your spouse or domestic partner may elect to start receiving this monthly deathbenefit at any time after the later of the date of your death or the date you would have been eligible toreceive early retirement benefits under the Plan (unless the monthly death benefit is a very small amount,in which case it will be cashed out in accordance with the "Cash-Outs of Small Benefits" section). Theamount of this death benefit generally will be equal to the monthly payment your spouse or domesticpartner would have received if you had been eligible for, and elected to receive, a Qualified Joint andSurvivor Annuity before your death.To certify a domestic partner, you must complete a certification form and submit it to the UPHS BenefitsOffice. You may obtain a certification form by contacting the UPHS Benefits Office.Maximum Plan BenefitsTotal benefits payable under the Plan may not exceed certain maximum benefit limits as prescribed byFederal tax laws. It is very unlikely that these limitations will affect you. In the unlikely event that theselimits do affect you, however, the UPHS Benefits Office will notify you and provide you with more detailedinformation. Also, under current tax laws, plans that become "top heavy" must meet certain additionalrequirements. Generally, a "top heavy" plan is one in which more than 60% of the total accrued benefitsunder the plan are for the benefit of key employees. Given the number and type of employeesparticipating in the Plan, it is very unlikely that the Plan will become top heavy. In the event that the Planbecomes top heavy, however, the UPHS Benefits Office will notify you and provide you with more detailedinformation.Plan OverpaymentsThe Plan reserves the right to recover any overpayment made, whether by reason of administrative erroror for any other reason. The Committee may authorize any procedure that it deems appropriate to recoveroverpayments, including without limitation, deduction from future payments of the amount of anyoverpayment.14

Non-Assignment Of BenefitsThe Plan has been established to help provide financial security for you and your family. For this reason,you may not borrow against the value of your benefit or assign your rights under the Plan as collateral fora loan or for any other purpose. However, all or a portion of your benefit may be assigned under a Federaltax lien or under a domestic relations order (as described below) to a spouse, former spouse, child orother dependent to satisfy a legal obligation that you have to that person.Assignment Of Benefits• QDROs. Federal law requires the Committee to honor judgments, decrees or court-approved propertysettlement agreements arising under state domestic relations laws. To be honored, such domesticrelations orders (referred to as "qualified domestic relations orders" or "QDROs") must requirepayments of all or part of your Plan benefit to your former spouse or your child(ren) and must complywith certain requirements of Federal law. These orders must relate to, and must specify that theyarise from, child support, alimony, or marital property rights.If you are divorced before your payments begin, your former spouse will not be treated as your survivingspouse for plan purposes, unless a QDRO provides otherwise. If you become divorced after yourpayments begin, the form of payment cannot change. For example, if you were receiving a 50% QualifiedJoint and Survivor Annuity with your former spouse, the surviving benefit would still be payable to thatformer spouse after your death, even if you are remarried to a different spouse at the time of your death.The Committee has procedures to respond to such QDROs. You should contact the UPHS BenefitsOffice at the address and number in the "General Information" section if you need further information.• Legal Settlements. If you commit a crime against the Plan or you breach a fiduciary duty to the Plan,a court may order, or a legal settlement may provide, that all or a portion of your benefit will beassigned to the Plan.Tax InformationBecause the Plan is intended to qualify for tax-exempt status under the Internal Revenue Code,participants have certain tax advantages. You are not required to pay Federal income tax on your benefituntil amounts are actually distributed to you. When these amounts are distributed to you, taxes generallywill be withheld unless you elect otherwise.If you receive a single lump sum distribution from the Plan that is eligible for a direct rollover and you donot have it transferred directly to another employer's plan or an IRA, Federal law requires the automaticwithholding of 20% of that distribution for Federal income taxes. You may not elect "no withholding" onsuch a lump sum distribution.Because tax consequences of distributions vary depending on factors such as age, marital status, andother income, you are strongly encouraged to consult your personal tax advisor to determine how to treatany Plan distribution for tax purposes.Benefits Insured By Pension Benefit Guaranty Corporation(PBGC)Your pension benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), aFederal insurance agency. If the Plan terminates (ends) without enough money to pay all benefits, thePBGC will step in to pay pension benefits. In this case, most people would receive all of the pensionbenefits they would receive under the Plan, but some people may lose certain benefits. Generally, thePBGC guarantees most vested normal and early retirement benefits, disability benefits if you becomedisabled under the terms of the Plan before the Plan terminates and certain benefits for your survivors.The PBGC guarantee generally does not cover:• Benefits greater than the maximum guaranteed amount set by law for the year in which the Planterminates;• Some or all of the benefit increases and new benefits based on Plan provisions that have been inplace for fewer than five years at the time the Plan terminates;15

• Benefits that are not vested because you have not worked long enough for a Participating Employer ora Related Employer;• Certain early retirement payments that result in an early retirement monthly benefit greater than yourmonthly benefit at the Plan's Normal Retirement Age;• Benefits for which you have not met all of the requirements at the time the Plan terminates; and• Non-pension benefits (such as health insurance, life insurance, certain death benefits, vacation pay,and severance pay).Even if certain of your benefits are not guaranteed, you still may receive some of those benefits from thePBGC depending on how much money the Plan has and how much the PBGC collects from theemployers. However, if there are any Plan benefits above the limitations described above that are notprovided because of insufficient Plan assets or lack of PBGC guarantees, such benefits may not bepayable by the Plan, the Participating Employers, Related Employers or the PBGC.Contact the Committee for more information about the PBGC and the benefits it guarantees, or contact thePBGC at:PBGC, Technical Assistance Division1200 K Street, N.W.Suite 930Washington, DC 20005-4026You can also call the PBGC at (202) 326-4000 (not a toll-free number). TTY/TDD users may call theFederal relay service toll-free at 1(800) 877-8339 and ask to be connected to (202) 326-4000. Additionalinformation about the PBGC's pension insurance program is available through the PBGC web site on theInternet at http://www.pbgc.gov.Amending Or Terminating The PlanThe University expects to continue the Plan indefinitely, but reserves the right to terminate the Plan at anytime. In addition, the Executive Committee of the Trustee Board of UPHS has the right to amend the Planat any time. The Executive Committee has delegated limited amendment authority to the Associate VicePresident of Human Resources of UPHS to make technical, administrative, compliance, and certain otheramendments to the Plan.If the Plan is terminated, you will have a vested or nonforfeitable right to the benefit you have accrued upto the termination date, to the extent it is funded under the Plan. The amount of your benefit, if any, willdepend on Plan assets, the terms of the Plan and the benefit guarantees of the PBGC. Under thesePBGC guarantees, Plan assets will be shared among Plan participants and beneficiaries in the followingorder:• Certain annuities that participants have been receiving or could have been receiving for three yearsprior to Plan termination;• Other vested benefits guaranteed by the PBGC;• Other vested benefits; and• Remaining Plan benefits.Once your benefit has been determined, it may be paid in the form of one or more cash payments or aninsurance company annuity contract that will pay you a monthly income. After all benefits have been paidand all legal requirements have been met, the Plan will return any residual assets to the University.16

Loss Of BenefitsUnder certain circumstances, your benefits may be lost, reduced or suspended. These circumstancesinclude, but are not limited to, the following:• Termination of Employment before Full Vesting – Your employment terminates for any reason beforefive years of Vesting Service.• Termination of the Plan – The Plan is terminated before sufficient assets have been accumulated topay all benefits (in this case your benefits may be protected, in full or in part, by the PBGC'sguarantees).• Amendment of the Plan – The Plan is amended to reduce accrued benefits in accordance withapplicable law.• Suspension of Benefits Upon Reemployment – You are reemployed by a Participating Employer or aRelated Employer and your benefits are suspended during your period of reemployment.• Payment of Your Benefits Under a QDRO or Tax Lien – All or a portion of your benefits are directed tobe paid to your spouse, former spouse or child pursuant to a QDRO or are subject to a Federal taxlien.• No Current Address – You do not provide the UPHS Benefits Office with your most recent addressand you cannot be located.• No Proper Application for Benefits – You fail to make proper application for benefits or fail to providenecessary information to the UPHS Benefits Office.• Early Payment of Benefits – Benefits paid to you before you reach your Normal Retirement Age will bereduced to account for early payment.• Reduction for Survivor Benefits – Under the joint and survivor annuity forms of payment, your benefitswill be reduced to permit payments to your beneficiary after your death.• Death Before Start of Payment, No Spouse – If you die before you begin receiving benefits under thePlan and you have no spouse, no benefits will be paid under the Plan.Plan ExpensesUnless otherwise paid by the Committee, all administrative expenses are paid from Plan assets andearnings. Included among these administrative expenses are fees paid to administrative service providerssuch as auditors and attorneys, recordkeeping fees paid to any record-keeper, trustee fees, and othersuch administrative fees and expenses. In addition to these administrative expenses, brokeragecommissions, investment management fees and other investment fund-specific investment fund expensesare paid directly from the investment funds. These fees and expenses will reduce the rate of return onPlan investments.Benefit ClaimsDenial of BenefitsIf you feel that you are entitled to certain Plan benefits you are not receiving, you may make a writtenrequest to the Committee for such benefits. If your request is denied, you will be notified in writing within90 days after the Committee receives your request. This notice will contain the following information:• The specific reason or reasons for the denial;• Specific reference to the Plan provisions on which the denial is based;• A description of any additional material or information necessary in order to present a thorough appealand an explanation of why such material or information is needed; and• An explanation of the claim appeal procedure and time limits applicable to the procedure, including astatement of your right to bring a civil action under Section 502(a) of ERISA if your claim is denied onappeal.17

If the Committee needs more than 90 days to review your claim for benefits, you will be advised in writingwithin 90 days after the Committee receives your claim. The notice will tell you why the Committee needsmore time (which cannot exceed an additional 90 days), and the date by which you can expect a decision.Appeal of DenialIf you disagree with the decision, you may appeal the denial to the Committee. IMPORTANT: You mustsubmit this appeal to the Committee within 60 days of the date that you receive the Committee's responseto your initial claim. For purposes of the review, you have the right to:• Submit written comments, documents, records and other information relating to the claim for benefits;• Request, free of charge, reasonable access to, and copies of all documents, records and otherinformation relevant to your claim for benefits; and• A review that takes into account all comments, documents, records, and other information submittedby you relating to the claim, regardless of whether the information was submitted or considered in theinitial benefit decision.The denied claim will be reviewed by the Committee and within 60 days after receipt of the request forreview, you will receive a written notice of the Committee's decision. The notice will:• Provide the specific reason(s) for the denial;• Refer to the provisions of the Plan on which the denial is based;• Contain a statement that you are entitled to receive, upon request and free of charge, reasonableaccess to, and copies of, all documents, records, and other information relevant to your claim; anddescribe any voluntary appeal procedures offered by the Plan and your right to obtain informationabout the procedures, and a statement of your right to bring an action under Section 502(a) ERISA.If the Committee needs more than 60 days to review the denied claim, you will be advised in writing within60 days after the Committee receives the request for review. The notice will tell you why the Committeeneeds more time (which cannot exceed an additional 60 days), and the date by which you can expect adecision.If you do not agree with the decision of the Committee, you may bring legal action in Federal DistrictCourt. You cannot bring legal action unless your claim has been reviewed and denied by the Committee.Burden of Proof Regarding RecordsThe Plan's records, including but not limited to an individual's employment status, compensation, service,elections, distributions, and all other matters affecting eligibility for and amount or payment of benefits, arecontrolling in all cases. If you believe that the Plan's records are incomplete or incorrect, the burden ofproof is on you to provide written documentation of the additional information that you believe is relevant.Whether such documentation is satisfactory to override the Plan's records will be determined by theCommittee in its sole and absolute discretion, subject to the Plan's claims and appeals procedure. Youmay review the Plan's records applicable to you by contacting the Committee or the Plan's recordkeeper inaccordance with the Plan's procedures.18

General InformationPlan Name:Retirement Plan of the Hospital of the University of Pennsylvania, Presbyterian Medical Center and thePennsylvania HospitalPlan SponsorThe Trustees of the University of Pennsylvania3401 Walnut Street, Suite 527APhiladelphia, PA 19104IRS Identification Number of Plan Sponsor: 23-1352685Plan Number: 006Type of Plan: Defined Benefit Pension PlanType of Administration: The Executive Committee of the Trustee Board of the University ofPennsylvania Health System has appointed a committee to administer the Plan.Plan AdministratorCommittee3930 Chestnut StreetPhiladelphia, PA19104 (215) 615-2675UPHS Benefits OfficeSame address and phone number as the Committee.Agent for the Service of Legal Process: Legal process on matters pertaining to the Plan may be servedin the name of the Plan on the Plan Administrator at the address listed above. Service may also be madeon the Trustee.Plan TrusteeState Street Bank & Trust Co.P.O. Box 1992Boston, MA 02105Plan YearThe Plan Year is July 1 through June 30.19

Your Rights Under ERISAThe following statement of your rights under ERISA is required to be disclosed to you by Federal law. Thetext of this statement of your rights was prepared by the U.S. Department of Labor. As such, theParticipating Employers, the University, the Committee, the UPHS Benefits Office and any other relatedentity or individual take no responsibility for the contents of the statement."As a participant in the Plan, you are entitled to certain rights and protections under the EmployeeRetirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants shall beentitled to:• Examine, without charge, at the Plan Administrator's office and at other specified locations, such aswork sites and union halls, all documents governing the Plan, including insurance contracts andcollective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed bythe Plan with the U.S. Department of Labor. This information is available for your review at 3930Chestnut Street, Philadelphia, Pennsylvania, 19104, (215) 615-2675.• Obtain, upon written request to the Plan Administrator, copies of documents governing the operationof the Plan, including insurance contracts and collective bargaining agreements, and copies of thelatest annual report (Form 5500 Series) and updated summary plan description. The PlanAdministrator may make a reasonable charge for the copies.• Receive a summary of the Plan's annual financial report. The Plan Administrator is required by law tofurnish each participant with a copy of this summary annual report.• Obtain a statement telling you whether you have a right to receive a pension at normal retirement ageand if so, what your benefits would be at normal retirement age if you stop working under the Plannow. If you do not have a right to a pension, the statement will tell you how many more years youhave to work to get a right to a pension. This statement must be requested in writing and is notrequired to be given more than once every 12 months. The Plan must provide the statement free ofcharge.In addition to creating rights for Plan participants ERISA imposes duties upon the people who areresponsible for the operation of the employee benefit plan. The people who operate your plan, called"fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Planparticipants and beneficiaries. No one, including your employer, your union, or any other person, may fireyou or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit orexercising your rights under ERISA. If your claim for a pension benefit is denied in whole or in part youmust receive a written explanation of the reason for denial. You have the right to have the Plan reviewand reconsider your claim.Under ERISA, there are steps you can take to enforce the above rights. For instance, if you requestmaterials from the Plan and do not receive them within 30 days, you may file suit in a Federal court. Insuch a case, the court may require the Plan Administrator to provide the materials and pay you up to $110a day until you receive the materials, unless the materials were not sent because of reasons beyond thecontrol of the Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part,you may file suit in a state or Federal court. In addition, if you disagree with the Plan's decision or lackthereof concerning the qualified status of a domestic relations order, you may file suit in a Federal court. Ifit should happen that the Plan fiduciaries misuse the Plan's money, or if you are discriminated against forasserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit ina Federal court. The court will decide who should pay court costs and legal fees. If you are successfulthe court may order the person you have sued to pay these costs and fees. If you lose, the court mayorder you to pay these costs and fees, for example, if it finds your claim is frivolous.If you have any questions about your Plan, you should contact the Plan Administrator. If you have anyquestions about this statement or about your rights under ERISA, you should contact the nearest office ofthe Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephonedirectory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration,U.S. Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20210.20