Mercer Defined Contribution Retirement Plan

SUMMARY PLAN DESCRIPTION FOR

THE CORPORATION OF MERCER UNIVERSITY

DEFINED CONTRIBUTION RETIREMENT PLAN

Updated 1998

INTRODUCTION

The Mercer University Defined Contribution Retirement Plan, often simply called the "Plan" in this booklet, was established by the Board of Trustees of the University in 1962 to help provide income for you and your family in your retirement years. The Plan has been amended at various times since it was first established. The Employee Retirement Income Security Act of 1974 ("ERISA") requires that certain information about the Plan be provided to you, as summarized in this booklet. This booklet summarizes the provisions of the Plan as in effect on January 1, 1998.

Some points in which you may be interested, or which may arise in unusual situations, are not covered in this booklet, since it is intended to be only a summary. In the event of any item not covered in this booklet, or in case of any conflict between this booklet and the Plan, the Plan will always control. Furthermore, you should not rely on any oral explanation or description of the Plan by any employee of the University because the written terms of the Plan will always govern. The entire Plan is contained in the Plan instrument, which is available in Benefits Administration. Any questions about this booklet or about the Plan should be directed to the Benefits Administration Office.

PLAN ORGANIZATION,
ADMINISTRATION AND FUNDING

Type of Plan. The Plan is a defined contribution plan because the Plan specifies the contributions that are made rather than the ultimate benefits provided. Contributions are used for the purchase of tax-deferred annuities under Section 403 (b) of the Internal Revenue Code. You may have heard that some pension plans are insured by a government agency called the Pension Benefit Guaranty Corporation ("PBGC"). However, because defined contribution plans such as this Plan do not guarantee a specific retirement benefit, the PBGC does not insure them.

Plan Sponsor. The organization which created and maintains the Plan is The Corporation of Mercer University. The University's mailing address is 1400 Coleman Avenue, Macon, Georgia 31207. The Employer Identification Number ("EIN") assigned by the Internal Revenue Service to the University is 58-0566167. The Plan Number assigned to the Plan is 001.

Fund Sponsors / Funding Vehicles. Contributions under the Plan are accumulated and invested in separate accounts maintained for each participant by approved Fund Sponsors. University contributions may be held and invested under individual annuity contracts issued by TIAA and CREF and by the Southern Baptist Protection Program Convention Annuity Plan. These Fund Sponsors each provide several kinds of accounts or funds (called "Funding Vehicles") which Participants may choose for the investment of the contributions made on their behalf. Elective Employee Contributions may also by held and invested with other approved vendors. The University may add or delete Fund Sponsors or Funding Vehicles in the future.

The U.S. Department of Labor has issued regulations under section 404(c) of ERISA which affirmatively relieve the University (and its affiliates) of any fiduciary responsibility and liability under ERISA for investment decisions made by Participants if certain conditions are satisfied. One such condition is that the University let each Participant know that the University intends to take advantage of this regulation. Thus, we want to notify each Participant that the University intends that the Plan be a plan described in ERISA section 404(c) and Title 29 of the Code of Federal Regulations section 2550.404c-1, and that the fiduciaries of the Plan be relieved of liability for any losses which are the direct and necessary result of investment instructions given by participants and beneficiaries.

More information about the Fund Sponsors and Funding Vehicles may be obtained from Benefits Administration. In addition, information about TIAA and CREF, including a CREF prospectus, may be obtained by writing to TIAA-CREF, 730 Third avenue, New York, NY 10017, or by calling 1-800-842-2733.

Plan Administration. The University is the Administrator of the Plan, through its Director of Benefits Administration and any other persons or committees that may be appointed by the Board of Trustees of the University. The address of the Director of Benefits Administration is the same as in paragraph 2 above, and the telephone number is (912) 752-2388. The Administrator is responsible for keeping records and filing government reports and other documents, and for interpreting and applying the Plan.

Agent for Service of Process. Although it is not expected that any participant in the Plan will need to go to court to pursue a claim under the Plan, the law requires someone to be named as agent for service of process, that is, someone to whom court papers may be given officially if a court dispute does arise. The person currently named as the agent for service of process is John P. Cole, 1400 Coleman Avenue, Macon, Georgia 31207. Process may also be served on the Plan Administrator, at the same address.

Plan Year. The Plan Year, for purposes of maintaining the Plan's fiscal records, begins January 1 and ends December 31.

PARTICIPATION, VESTING & BENEFIT REQUIREMENTS

Eligibility for Participation. If you are an "Eligible Employee", you are eligible to begin participation in the Plan and begin receiving University Plan Contributions on the first day of the month following the month in which you attain age 21 and acquire two years of Credited Service.

An "Eligible Employee" is any employee of the University except (a) any student employee enrolled and regularly attending classes at the University ; (b) any medical or other resident or post- doctoral fellow participating in a residency training program at Mercer; and (c) any employee customarily employed on a part-time, temporary or irregular basis for less than 20 hours a week is an Eligible Employee only when credited with a Year of Service. A "Year of Service" means a 12-month period starting with the Eligible Employee's date of employment (or anniversary date of employment) during which the Eligible Employee completes 1000 or more Hours of Service. "Years of Credited Service" include Years of Service with Mercer University and equivalent Years of Service with other non-profit, tax-exempt, accredited institutions of higher education, including hospitals or other organizations which are accredited by the Accreditation Council for Graduate Medical Education (ACGME) and which offer one or more graduate medical education programs. To be eligible such equivalent service must have occurred during the period immediately preceding the Eligible Employee's date of employment. There are special rules which apply if you are re-hired after a Break in Service. Benefits Administration must verify prior to service to determine retirement eligibility.
The University will notify you when you have completed the requirements necessary to participate in the Plan. You will then need to complete and return the necessary enrollment forms to begin participation.
University Plan Contribution. When you begin participation in the Plan, the University will make Plan Contributions on your behalf to the Funding Vehicle(s) that you have chosen. The amount of University Plan Contributions is based on a percentage of your Regular Salary for each Year of Participation.

For Eligible Employees hired prior to January 1, 1993, the annual University Plan Contribution is 10% of Regular Salary. For Eligible Employees hired on or after January 1, 1993, the annual University Plan Contribution is 6% of Regular Salary until completion of seven Years of Credited Service, and 10% of Regular Salary thereafter. If you are a Plan participant for only a portion of a year, the University Plan Contributions will be based on the Regular Salary earned during the period in which you participate.
For these purposes, "Regular Salary" means the amount paid by the University which is required to be reported as wages on the Participant's W-2 Form, except amounts paid to faculty members in the School of Medicine pursuant to the Faculty Practice Plan and except any amounts added to an individual's taxable gross due to receipt of a Taxable Tuition Waiver benefit. Regular Salary also includes compensation which is not currently includible in gross income because of a salary reduction agreement authorized under Internal Revenue Code Sections 125 or 403 (b) or because of a housing allowance provided to certain ministers authorized under Internal Revenue Code Section 107. In no event shall the Regular Salary taken into account under the Plan exceed the limits of Internal Revenue Code Section 401(a) (17).
Elective Employee Contributions. You are not required to make any contributions to the Plan, but you may make Elective Employee Contributions under a salary reduction agreement with the University, executed in accordance with Internal Revenue Code Section 403 (b) . Eligible Employees who have not completed the age and service requirements for participation in University Plan Contributions may also make Elective Employee Contributions. There are limits imposed by the Internal Revenue Code on the total amount of contributions that may be made on your behalf, and on the amount that you can contribute by salary reduction.

Fund Transfers, Rollovers. You may be permitted to transfer funds to and from some Funding Vehicles, and you may make "rollovers" from certain qualified plans of other employers, or from an IRA, into an approved Funding Vehicle under the Plan. Fund transfers and rollovers are subject to limitations and requirements imposed by the relevant Funding Vehicles and by the Internal Revenue Code and its rulings.

Vesting Possible Loss of Benefits. You are fully and immediately vested in the benefits arising form contributions made on your behalf under the Plan, and all Plan contributions made are nonforfeitable. However, the amount of benefits you will receive will depend on the value of your Accumulation Account when you retire, so adverse investment experience in the Funding Vehicles may cause your benefit to be reduced in value.

Normal Retirement. The Normal Retirement Date under the Plan is the last day of the fiscal year in which a Participant turns 65. Annuity income usually begins on that date.

Retirement Benefits. You are eligible for normal retirement benefits if you terminate employment on or after your Normal Retirement Date. You are eligible for early retirement benefits if you terminate employment on or after your fifty-fifth birthday and prior to your Normal Retirement Date. Upon retirement, you are eligible to receive retirement benefits equal to the current value of your Accumulation Account [the separate account (s) established for you with the Fund Sponsor (s) you have chosen]. That value will include all University Plan Contributions and Elective Employee Contributions, less expense charges, adjusted to reflect credited investment experience.

Death Benefits. If you should die before retirement benefit payments begin, the full current value of your Accumulation Account is payable to your beneficiary. You will be allowed to name your beneficiary at the time you become a Participant in the Plan, by filling out a form supplied by the Plan Administrator, and you may change your beneficiary at any time by completing and returning a new form. However, if you are married your spouse has certain rights to survivor benefits unless an acceptable written waiver is signed and filed with the Fund Sponsor.

Other Termination of Employment. If you terminate employment before retirement benefits begin for any reason other than retirement or death, you then have a right to a deferred vested retirement benefit equal to the value of your Accumulation Account. Some Fund Sponsors also permit lump-sum payments or repurchase of all or part of your account upon termination of employment.

In-Service Cash Distributions. If permitted by the applicable Fund Sponsor, a Participant who suffers a financial hardship may request an in-service cash distribution from the Participant's Accumulation Account to meet the need created by the hardship. In addition, any Participant who is at least age 59 1/2 or who is participating in a voluntary phased retirement arrangement with the University may request an in-service cash distribution from his or her Accumulation Account. Any in-service cash distribution permitted under the Plan must be approved by the Plan Administrator, must be permitted by the applicable Fund Sponsor, and is subject to any restrictions under the Internal Revenue Code and any requirements imposed by the Fund Sponsor, including administrative charges.

DISTRIBUTION OF BENEFITS

Benefit Payment Options. You may choose from among several options for receiving your retirement benefits, which may vary depending on the Funding Vehicles you have chosen. These include single life annuities, joint and survivor annuities, fixed- period payments, and lump sum payments. Usually, income payments are made monthly. You will have a chance to elect the payment option you want by filling out the necessary forms provided by the Fund Sponsor(s). Depending on the Fund Sponsor, you may be able to elect to receive income under more than one option to meet your specific retirement needs.

Spouse's Rights. If you are married when your benefit payments are to being, you must choose an income option that provides survivor annuity income to your spouse, unless you and your spouse both waive that right in writing. Death benefits are also subject to spousal rights, and so are certain other transactions such as cash withdrawals.

Minimum Distribution Requirements. There are certain requirements on the time you select for payment of your benefits. Payment of your benefits must begin by the April 1st following the later of (i) the year in which you attain age 70 1/2, or (ii) the calendar year in which you retire. In the event of your death, there are also time requirements for the distribution of benefits to your beneficiary.

OTHER THINGS YOU SHOULD KNOW

Procedures for Claiming Benefits. When you are eligible for benefits you should apply for them on forms which will be provided by the Fund Sponsor (s) you have selected. Normally, your Fund Sponsor will contact you several months before the date you scheduled your benefits to begin on your application. If you wish to begin receiving income sooner, you should notify the Fund Sponsor several months in advance. No benefits will be distributed until the appropriate forms are filed.

Claims and Review Procedures. If you believe you are being denied any rights or benefits under the Plan, you may file a claim in writing with the Plan Administrator. If the Plan Administrator denies your claim, you will be notified in writing, with an explanation of why your claim has been denied. You then have the right to request a review, and the Administrator must explain to you how to submit such a request. The decision after such a review will be final unless you wish to litigate the issue by filing suit against the University.

Changes in the Plan. While it is expected that this Plan will continue indefinitely, the University reserves the right to amend the Plan, to discontinue contributions under the Plan, or to terminate the Plan. The University may amend the Plan at any time to comply with applicable laws or to make substantive changes which it thinks are desirable. Generally, amendments operate prospectively, and no amendment can deprive you of any benefit arising from nonforfeitable contributions made prior to the amendment. If the Plan should be terminated in whole or in part, or if the University discontinues contributions to the Plan, you will continue to have a fully vested and nonforfeitable interest in your Accumulation Account.

Your Rights Under ERISA. As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: Examine, without charge, at the Plan Administrator's office all Plan documents and copies of all documents filed by the Plan with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions.
Obtain copies of all Plan documents and other Plan information to which you are entitled upon written request to the Plan Administrator. The Administrator 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 to furnish 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 age and if so, what your benefits would be at normal retirement age if you stop working under the plan now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to get a right to a pension. This statement must be requested in writing and is not required to be given more than once a year. The Plan must provide the statement free of charge.

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the 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 Plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit to which you are entitled or from exercising your rights under ERISA. If your claim for a benefit is denied in whole or in part, you must receive a written explanation of the reason for the denial. You have the right to have the Plan review and reconsider your claim.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials to which you are entitled from the Plan Administrator and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $100 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan 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. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.

The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order 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 any questions about this statement or about your rights under ERISA, you should contact the nearest Area Office of the U.S. Labor-Management Services Administration, Department of Labor.