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UPMC 403(b)/401(a) RETIREMENT SAVINGS PLANS

IMPORTANT NOTICE

DEFAULT INVESTMENTS AND CONTRIBUTIONS

This Notice explains: (1) where your contributions will be invested until you make an investment election,

(2) important information about the default investment options, and (3) how you may make an investment

election. Please read this entire Notice. This Notice is effective on and after your date of hire, which is the

first day you are eligible to contribute to the UPMC 403(b) and/or 401(a) Retirement Savings Plans (the

Savings Plan or Plan). The UPMC Savings Plan is intended to be operated and administered in compliance

with the provisions of Section 404(c) of the Employee Retirement Income Security Act of 1974, which sets

standards for retirement plans that offer investment direction and control by participants.

Investment of Your Contributions

Overview. You have a right as participants and beneficiaries to direct investments out of the qualified default

investment alternative, and direct the investment of your contributions (including rollovers from other

eligible retirement plans) under the Savings Plan in a number of different investment funds. Unless you have

chosen (or until you choose) a different investment fund or funds, your contributions will be invested in the

Savings Plan’s default investment option (the Default Investment Option). The Default Investment Options

are the age-appropriate Vanguard Target Retirement® Funds and are described in more detail below under

the portion of this Notice titled “What Are the Default Investment Options”.

How to Make (or Change) Your Investment Election. There are no restrictions or transfer fees associated

with the UPMC Savings Plan investment options. You can obtain investment information concerning the

other investment alternatives available under the Plan and make, or change, how your Savings Plan account

is invested among the Plan’s offered investment funds, one of two ways: (1) online or (2) phone, both of

which are described below.

(1) Online: Log on to the Your Benefits ResourcesTM

site via My HUB (Infonet.UPMC.com), UPMC’s

employee self-service website, by clicking on the Human Resources tab, then selecting My Retirement under

My Benefits. This will allow direct access to your retirement information without having to enter a separate

log on or password. You can also access Your Benefits Resources by typing resources.hewitt.com/upmc in

your Internet browser (a separate log on and password will be required to access your account information).

(2) Phone: Call the UPMC Retirement Center at 1-877-206-8264. Representatives are available to take your

call Monday through Friday, 8:30 a.m. to 5:00 p.m., Eastern Time. To learn more about the Plan’s investment

funds and procedures for changing how your Savings Plan account is invested, you can review the “Your

Investment Options” section of the Plan’s Summary Plan Description (SPD). Also, you can contact the

UPMC Retirement Center at 1-877-206-8264, or visit the Your Benefits Resources web site.

What Are the Default Investment Options? The Default Investment Options are specific to each participant.

The one that is specific to you is the Vanguard Target Retirement Fund with the target date closest to the

year in which you turn age 65. Currently, there are eleven (11) Vanguard Target Retirement Funds offered

under the Savings Plan, and they are listed in the following chart:

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Birth Year Investment

Before 1945 Vanguard Target Retirement Income

1945-1947 Vanguard Target Retirement 2010









1988 and later Vanguard Target Retirement 2055

Investment Objectives for the Vanguard Target Retirement Funds. Each Vanguard Target Retirement Fund is

broadly diversified among various asset classes for their expected risk and return as Vanguard’s investment

team deems appropriate to meet a projected date when an investor’s money might be needed. As time passes,

the investment mix of Vanguard Target Retirement Funds gradually shifts from a greater concentration of

higher-risk investments (namely stock funds) to a greater concentration of lower-risk investments (bond

funds and money market instruments). The adjustment over time is referred to as the fund’s “glidepath”.

When the target date is reached, the fund continues to adjust its asset position until it transitions into the

Retirement Income fund (a time referred to as the “landing period”).

For Specific Information on Each Vanguard Target Retirement Fund, refer to the portfolio summary sheets

(Summary Sheets) for each of the above Vanguard Target Retirement Funds. The Summary Sheets provide a

description of the applicable investment objectives, risk and return characteristics, and fund expenses for

each portfolio. You can access this information by logging on to Your Benefits Resources, where you can

view the Plan’s SPD and the funds’ prospectuses, or by contacting the UPMC Retirement Center at 1-877-

206-8264 to request a copy of the Plan’s SPD or funds’ prospectuses.

Why this Type of Default Investment Option. The Vanguard Target Retirement Funds are used as the Default

Investment Options because they are the types of investment options that the U.S. Department of Labor

identified as “qualified default investment alternatives” under Section 404(c)(5) of the Employee Retirement

Income Security Act of 1974, as amended (also referred to as ERISA). When your contributions are invested

in a qualified default investment alternative and certain other requirements imposed upon the UPMC Savings

Plan are met, you are solely responsible for the investment performance of contributions invested in those

qualified default investment alternatives, i.e., the Default Investment Options. So, if you would prefer for

your contributions to be invested in another investment option, be sure to change your investment elections,

as described above. For further information on the other investment options available to you under the

Savings Plan, log on to Your Benefits Resources, where you can view the Plan’s SPD and the funds’

prospectuses. You can also contact the UPMC Retirement Center at 1-877-206-8264 to request a copy of the

Plan’s SPD or funds’ prospectuses.

Effective Jan. 1, 2015

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