(61537563) (13) SPD - UPHS - Retirement Plan of …

1 summary plan DESCRIPTIONFOR THE Retirement plan OF THE HOSPITAL OF THE UNIVERSITY OF PENNSYLVANIA, PRESBYTERIAN MEDICAL CENTER AND THE PENNSYLVANIA HOSPITAL Note: This booklet is only a summary of certain portions of the plan . Only the plan itself can give any person a right to benefits and this is not the plan . This booklet does not describe all the provisions of the plan and is not a substitute for the plan . If you want to determine your rights under the plan , ask to see a copy of the plan . If anything in this booklet conflicts with the plan , the plan will be followed. Nobody speaking on behalf of the plan or the plan sponsor can alter the terms of the Hired or Rehired Before July 1, 2010 and Eligible to Accrue Benefits after January 1, 2011 January 1, 2017 TABLE OF CONTENTSPage i 1 PRIOR VERSIONS OF THE plan .. 2 HOW THE plan IS ADMINISTERED .. 3 HOW THE plan WORKS .. 3 WHO PARTICIPATES IN THE plan .. 3 SERVICE UNDER THE plan .. 6 Retirement BENEFITS.

2 9 CALCULATING YOUR Retirement 10 DISABILITY BENEFITS .. 14 DEFERRED VESTED BENEFITS .. 15 SPECIAL SITUATIONS .. 16 FORMS OF BENEFIT PAYMENT .. 18 DEATH BENEFITS .. 21 STATUTORY AND TOP-HEAVY LIMITATIONS .. 21 plan OVERPAYMENTS .. 22 NON-ASSIGNMENT OF BENEFITS .. 22 ASSIGNMENT OF BENEFITS .. 22 PARTICIPANT, BENEFICIARY AND ALTERNATE PAYEE RESPONSIBILITY .. 23 TAX INFORMATION .. 23 BENEFITS INSURED BY PENSION BENEFIT GUARANTY CORPORATION ("PBGC") .. 24 AMENDING OR TERMINATING THE plan .. 24 LOSS OF BENEFITS .. 25 CHANGE OF FUNDING VEHICLE .. 26 plan EXPENSES .. 27 CLAIMS AND APPEALS PROCEDURES .. 27 WHAT SOCIAL SECURITY ADDS .. 29 plan DOCUMENT 30 GENERAL INFORMATION .. 30 YOUR RIGHTS UNDER ERISA .. 31 DB1/ 1 INTRODUCTIONR egardless of what Retirement means to you now--or will mean to you when you get there--just about everybody worries about the same thing: financial security. Just how much money will you need to be financially secure and independent at Retirement ?

3 This depends on many things--most of which are determined by your own personal situation. In your planning, remember that many work-related expenses drop out of your financial picture when you retire. If you have a family, your children will most likely be grown. You will no longer pay Social Security taxes when you stop working, and your other taxes probably 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's financial 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. The Retirement plan of the Hospital of the University of Pennsylvania, Presbyterian Medical Center and the Pennsylvania Hospital (the " plan ") described in this summary plan description ( "SPD") can help you meet the Retirement goals you set for yourself.

4 Benefits from the plan could be an important part of your Retirement income and you should understand how the plan works. This SPD describes the terms of the plan as they apply to employees who were hired or rehired before July 1, 2010 and who made an "Option 1" Retirement Choice election to be eligible to earn benefits under the plan on and after January 1, 2011 (an "Option 1 Choice Participant"). Employees who made an "Option 2" Retirement Choice election, and employees who are hired or rehired, or who transfer to or from a "Non-Participating Employer" (as defined below), on or after July 1, 2010, are not eligible to participate in the plan (employees who made an "Option 2" Retirement Choice election ceased being eligible to earn benefits under the plan on and after January 1, 2011). Employees who are not eligible to earn benefits under the plan generally are eligible to receive employer contributions under the defined contribution plans of the University of Pennsylvania Health System ("UPHS").

5 This SPD applies to you if you are an Option 1 Choice Participant. If you transfer to a "Non-Participating Employer," your active participation in this plan stops. Once your active participation in this plan stops, it cannot restart even if you return to a "Participating Employer" (as defined below). However, your service with the Non-Participating Employer will be counted for purposes of determining your eligibility for early Retirement and vesting (as described below). A copy of this SPD should be retained as part of your permanent records. Every effort has been made to ensure that this description of the plan accurately describes the plan 's relevant DB1/ 2 provisions, but if there is a difference between this summary and the plan document, the terms of the plan document always govern; your rights to receive a benefit under the plan are determined solely on the basis of the official plan documents and not this SPD. If you have any questions about the plan , you should contact the UPHS Benefits Department at the address and number set forth in the "General Information" section.

6 This booklet, which is the plan 's official SPD, gives you a brief outline of the plan as it applies to you. Although this SPD is 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 be misleading. More importantly, the plan is detailed and not every rule that may apply to you can be summarized here. This SPD applies to general situations and not to your particular circumstances. If you have any questions, please contact the UPHS Benefits Department. 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 of Philadelphia Pension plan (the "PMC plan ") and the Pennsylvania Hospital Retirement plan (the "PAH plan ") were merged into the plan .

7 The Phoenixville Hospital of the University of Pennsylvania Health System Pension plan ("Phoenixville plan ") was merged into the plan as of October 1, 2004; however, if you are a participant in the plan who accrued benefit under the Phoenixville plan this SPD does not apply to you. The plan was amended as of July 1, 2002 to "standardize" the benefits provided to all plan participants employed by HUP, PMC and PAH. In most instances, the plan was standardized by taking the 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 (for example, an improved benefit formula or more distribution options, etc.). A small number of plan participants, 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 be less than the benefit accrued by such participant under an individual pre-merger plan before the standardization took effect.

8 If you have any questions about the standardization of the plan or any other plan changes, you should contact the UPHS Benefits Department at the address and number set forth in the "General Information" section. PRIOR VERSIONS OF THE plan Please keep in mind that prior versions of the plan (including a prior version of any plan before that plan was merged into the plan ) generally continue to apply to events that occurred while those versions were in effect. For example, as a general rule, participants who previously retired or terminated employment will have their benefits determined under the version of the plan as in effect at the time of their Retirement or termination. This SPD describes the plan in effect as of the date shown on the front cover of this booklet (except that special effective dates may be set DB1/ 3 forth in the plan and this SPD for certain specific provisions). HOW THE plan IS ADMINISTEREDThe plan is administered by the University of Pennsylvania Health System Retirement Committee ("Committee"), which is a group of individuals appointed by the UPHS Executive Committee to administer the plan .

9 The Committee is responsible for all matters relating to the plan , including, but not limited to: interpreting the 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 for any aspect of plan administration to other individuals or entities. Expenses related to the administration of the 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 UPHS Benefits Department. If you have any questions about the plan or plan administration, you should contact the UPHS Benefits Department or the Committee at the telephone number and address listed in the "General Information" 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.

10 " Your right to receive this benefit depends upon the length 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 detail below. To provide benefits under the plan , a separate trust fund (administered by the "Trustee" as designated in the "General Information" section) was established to hold the plan 's assets. The Participating Employers periodically make contributions to the plan in accordance with the minimum funding standards required pursuant to ERISA and the Internal Revenue Code to fund the plan 's benefits. The amount of these contributions is determined by the plan 's actuaries. Employees are not required or permitted to make contributions to the plan . All plan benefits are paid from the plan 's trust fund and not by a Participating Employer or any other entity. WHO PARTICIPATES IN THE PLANAll employees of the Participating Employers who are "Covered Employees" are eligible to participate in the plan after satisfying the plan 's eligibility requirements as described below.