2001 SUMMARY ANNUAL REPORT

The following are the Summary Annual Reports for certain of our WHOI benefit programs. The reports provide financial information on the benefits we have reported to the Federal Government, that we are required to do on an annual basis.

If you would like additional information about our benefit programs, please contact Kevin Hudock, ext. 2217. General plan information is found in the Personnel Practices and Procedures Manual available on the Human Resource's site on the WHOI Home Page (http://www.whoi.edu/services/HR/ppp/table.htm) or in hardcopy upon request if you do not have access to the Internet.

This is a summary of the annual reports of the Benefit Plans for Employees of the Woods Hole Oceanographic Institution (Employer Identification Number 04-2105850), for calendar year 2001. The annual reports have been filed with the Internal Revenue Service as required under the Employee Retirement Income Security Act of 1974 (ERISA).

SUMMARY ANNUAL REPORT FOR THE RETIREMENT PLAN FOR EMPLOYEES OF WOODS HOLE OCEANOGRAPHIC INSTITUTION

Basic Financial Statement

The Retirement Trust provides benefits under the plan. Plan expenses were $9,485,173. These expenses included $8,512,468 in benefits paid to participants and beneficiaries, and $972,705 in administrative expenses. A total of 1,315 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits.

The value of plan assets, after subtracting liabilities of the plan, was $160,254,856 as of December 31, 2001 compared to $182,595,594 as of January 1, 2001. During the plan year, the plan experienced a decrease in its net assets of $22,340,738.

This change included unrealized appreciation or depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total loss of $12,855,565, including employer contributions of $0, employee contributions of $0, loss of $14,876,865 from the sale of assets, and earnings from investments of $2,021,300.

Minimum Funding Standards

An actuary's statement shows that enough money was contributed to the plan to keep it funded in accordance with the minimum funding standards of ERISA.

Insurance Information

The plan had contracts with BlueCross BlueShield of Massachusetts ("BCBSMA") for BCBSMA's HMO, Access Blue and Blue Care Elect Preferred (PPO). Total premiums paid for the plan year ending December 31, 2001 were $4,140,143. Of this total, the Institution paid $2,506,485 with the remainder of $1,633,658 paid by employees.

Additional Insurance Information

The plan provides a Post Retirement Medical Benefit Plan for medical benefits, namely Medicare Part B premiums and the Institution's supplementary medical coverage, i.e. Medex III (and BCBSMA's employee plans for those under age 65) with BlueCross BlueShield, and Tufts' Secure Horizons, covering substantially all eligible retired employees and their spouses.

Basic Financial Statement

A Voluntary Employees' Beneficiary Association Trust (VEBA) provides benefits under the Post Retirement Medical Benefit Plan. Plan expenses were $1,155,933. These expenses included $1,046,819 paid to insurance carriers for provision of benefits and $109,114 in administrative expenses. A total of 385 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 $14,532,882 as of December 31, 2001 compared to $15,642,206 as of January 1, 2001. During the plan year the plan experienced a decrease in its net assets of $1,109,324.

This decrease included unrealized appreciation or depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $46,609, including employer contributions of $900,520, employee contributions of $106,619, gain of $130,582 from the sale of assets, and a net loss from investments of $1,091,112.

 Minimum Funding Standards

The Institution makes quarterly contributions to the Plan. Plan expenses are paid by the Institution; therefore, expenses of the Plan are a direct reduction of the quarterly contribution, are based on actual medical claims history and are supported by the Plan's actuary.

The plan has a contract with Delta Dental Plan of Massachusetts to pay all dental claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2001 were $398,998. Of this total, the Institution paid $186,853 with the remainder of $212,145 paid by employees.

The plan has a contract with Prudential Life Insurance Company to pay all death claims incurred under the terms of the plan including dependents, if elected. The total premiums paid for the plan year ending December 31, 2001 were $319,988. Of the total insurance premiums paid, the Institution paid $89,774 and the remainder of $230,214 paid by employees.

Insurance Information

The plan has a contract with AIG Life Insurance Company to pay all accidental death, dismemberment and total disability claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2001 were $5,220..

Insurance Information

The Plan has a contract with Prudential Life Insurance Company to pay all disability claims for long-term disability under the terms of the plan. Total premiums for the plan year ending December 31, 2001 were $93,746.

 Additional Information

The Plan has a contract with Prudential Life Insurance Company to manage short-term disability claims. Expenses for management of claims were $12,885. Actual claims were paid by the Institution under the terms of the plan. Total claims for the plan year ending December 31, 2001 were $98,550.

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 report;
 
2. Assets held for investment;
 
3. Transactions in excess of 5 percent of plan assets;

 4. Insurance information including sales commissions paid by insurance carriers;  and
 
5. Actuarial information regarding the funding of the plan.

To obtain a copy of the full annual report, or any part thereof, write or call the Human Resources Office, MS #15, Woods Hole Oceanographic Institution, Woods Hole, Massachusetts 02543, (508) 289-2217. The charge to cover copying costs will be $5.00 for each full annual report, or $.25 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 to examine the annual report at the main office of the plan, Human Resources Office, Maury Lane, Woods Hole Oceanographic Institution, Woods Hole, Massachusetts, 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: Pension and Welfare Benefit Administration, N 5658, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, DC 20210.