S T A N F O R D U N I V E R S I T Y

Contributory Retirement PlanS U M M A R Y P L A N D E S C R I P T I O N

U P D A T E D J A N U A R Y 2 0 0 5

S C R P B E N E F I T S U P D A T E

This information (also known as a Summary of Material Modifications) updates the StanfordContributory Retirement Plan (SCRP) Summary Plan Description.

True-Up of Matching ContributionsBefore the SCRP was amended, the University made matching contributions for each payroll period in which a Participant made a contribution, as set forth below:

Employee Contribution Matching Contribution1% 1.5%2% 3%3% 4%

4% or more 5% maximum

Because the University’s matching contribution would never exceed 5% of compensation for the payrollperiod, a Participant who contributed more than 4% of compensation for some payroll periods and less than 4% of compensation for other payroll periods would receive less in matching contributionsover the year than if the Participant had contributed at an even rate throughout the year. In order toenhance the University’s matching contributions for Participants whose ability to make employee contributions may vary over the course of the plan year, the SCRP has been amended, effective for theplan year ending December 31, 2005, to provide for an additional “true-up” contribution after the last complete payroll period in 2005 and the last complete payroll period in each calendar quarter thereafter.

The additional matching contribution will be made in an amount sufficient, when added to matchingcontributions already made for the Participant for the plan year, to provide the Participant with totalmatching contributions equal to a percentage of the Participant’s compensation to date for the planyear, based on the Participant’s employee contributions to date for the plan year, as set forth below:

Employee Contribution Matching Contribution

At least 1% but less than 2% 1.5%

At least 2% but less than 3% 3%

At least 3% but less than 4% 4%

4% or more 5% maximum

If You Leave Stanford and ReturnYour contribution level (1% - 5%) will automatically re-start at the same level you were receiving whenyou left. For example, if you are at the 2% contribution level when you leave Stanford, you will startreceiving 2% when you return until you have completed 12 months of employment at the 2% level.Then, the Basic Contribution will move to the next level.

Controlled GroupEffective January 1, 2009, new federal regulations require Stanford Hospital and Stanford University to administer their retirement plans as if they were maintained by the same employer. This means thatnew and more restrictive rules will apply to retirement plan distributions if you change employmentfrom the hospital to the university, or vice versa.

Revised 1/2009

I N T R O D U C T I O N

Stanford University maintains a retirement program that includes three separate plans – the StanfordUniversity Staff Retirement Annuity Plan* (SRAP), the Stanford University Tax-Deferred Annuity Plan(TDA) and the Stanford Contributory Retirement Plan (SCRP). These retirement plans include opportunities for tax-deferred savings. This booklet is the Summary Plan Description for the StanfordContributory Retirement Plan (SCRP) and has been prepared to explain the major provisions in effect as of January 2005.

The Stanford Contributory Retirement Plan (SCRP) is generally available after one year of service tobenefits-eligible staff and faculty who do not participate in the SRAP. The SCRP provides for personaland University contributions toward a retirement income benefit.

The SCRP is called a defined contribution plan because the contribution formula (not the final benefit)is defined by plan documents and salary reduction agreement(s). You may specify a percentage of yourpay to contribute each pay period. In addition, the University contributes to SCRP on your behalfbased on Basic Contribution rules described on page 5 and the Matching Contribution schedule onpage 6. You decide where all contributions are invested, accept all investment risks, and benefit from the investment gains.

A copy of the SCRP official plan document is available for inspection at Stanford Benefits and theSLAC Benefits Office during regular business hours. You may also contact a Benefits Representative at (650) 736-2985 or toll-free (877) 905-2985. SLAC employees may call (650) 926-2356. This bookletis also available through the Stanford Benefits web site at http://benefits.stanford.edu.

Although Stanford expects to continue the SCRP indefinitely, it reserves the right to amend, modify, orterminate the Plan at any time in its sole discretion. Except under limited circumstances, Stanford maynot amend the Plan retroactively to take away any benefit you (or a beneficiary) were entitled to beforethe amendment. If the Plan is terminated, your rights and any accumulated benefits will remain fullyvested and will be distributed to retirees and participants in accordance with the provisions of the Plan.If any material modifications are made to the Plan, you will be notified.

* Only available to Police Sergeants and a limited number of employees who are in a collective bargaining unit or who elected to continue participation by special arrangement in 1996 or 2002.

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TA B L E O F C O N T E N T S

Introduction ....................................................................................................................iOverview........................................................................................................................1Eligibility .......................................................................................................................2Enrollment.....................................................................................................................4Contributions ................................................................................................................5

University Basic Contribution ..................................................................................5Employee Contributions...........................................................................................6University Matching of Employee Contributions .....................................................6Rollovers...................................................................................................................6Changing Employee Contributions ..........................................................................6Contributions During Leaves of Absence .................................................................7Contributions During Sabbatical..............................................................................7Contributions When University Employment Ends .................................................7Contributions While of Leave for Military Service ...................................................7Quarterly Statements ................................................................................................7Contribution Limits .................................................................................................8

Tax Information on Contributions ..............................................................................9Investment Options.....................................................................................................11

Investment Responsibility.......................................................................................11Changing Your Investment Provider or Fund Choices ............................................13How Investments Grow..........................................................................................13After-Tax Contributions .........................................................................................14Vesting....................................................................................................................14

Beneficiary Information..............................................................................................15Loans and Hardship Distributions ............................................................................17Applying for Benefits ..................................................................................................19Payment Options ........................................................................................................20Tax Information on Distributions and Rollovers ......................................................22How Benefits Might Be Lost Or Decreased...............................................................23Requests for Information............................................................................................24Claims Procedures and Rights for Review .................................................................25General Plan Information...........................................................................................26Your Rights Under ERISA ..........................................................................................27Definitions...................................................................................................................29Appendix A – Claims Procedures ...............................................................................31

Schedule 1 ..............................................................................................................37

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O V E R V I E W

The SCRP is generally available to University faculty and staff, as long as you are not a member of acollective bar-gaining unit, Police Sergeant or deputized patrol officer, and are not accruing benefits under the SRAP. Your personal contributions and University contributions are invested in tax-shelteredannuities or mutual funds you select from those available under the Plan. This allows you to save for your future retirement income on a tax-deferred basis.

Here are some Plan highlights:

ª SCRP is an employer-sponsored retirement plan under IRS Section 403(b).

ª Participation and University Basic Contributions automatically begin after one year of service if you are in an eligible category.

ª In addition to automatic contributions from Stanford, you may enroll and make Employee Contributions.

ª If you make Employee Contributions, the University makes University Matching Contributions – this is in addition to the University Basic Contributions.

ª Your contributions to the Plan can be on a before-tax or after-tax basis up to federal contribution limits.

ª Your before-tax contributions reduce your federal and state taxable income for the year they are made.

ª Your before-tax contributions, Stanford contributions, and all investment earnings are sheltered from taxes until you start to receive the payments from the Plan.

ª You select how all contributions are invested – both yours and Stanford’s – from the funds available through the Plan.

ª You benefit from all investment gains and accept all investment risks.

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This booklet provides a summary of eligibility, coverage, vesting, retirement dates, payment options and other subjects. However, the official Plan Document, together with certain annuity contracts

and custodial agreements with investment providers (all as amended from time to time) govern the Plan’s actual operation,and the determination and payment of benefits. In the event of any conflict

between this booklet and the official Plan Document or any of the annuity contracts or custodial agreements, the Plan Document, annuity contract, or custodial agreement will govern.

This document does not constitute an employment contract or any promise of employment.

E L I G I B I L I T Y

All University faculty and staff (with certain exceptions noted below) are eligible to participate in the Plan after completion of one year of qualifying service.

A year of qualifying service is a 12-month period starting on your date of hire or rehire, or any anniversary of that date, in which you complete 1,000 hours or more of employment.

An hour of service is each hour you are:

ª Actually paid for services,

ª Entitled to back pay,

ª On a paid absence such as vacation, holiday, sick leave, family leave or disability, or

ª On an official leave of absence without pay, as long as you return to employment at Stanford at the end of your leave.

No more than 501 hours of service will be recognized for a period in which you do not actually perform services.

If you were employed by Stanford Health Service (SHS), Lucile Salter Packard Children’s Hospital(LSPCH), UCSF Stanford Health Care (UCSF-SHC), or Stanford Hospital and Clinics (SHC), that employment will be taken into account in determining your qualifying service, provided you transferred directly to University employment. A direct transfer occurs when you end employment with SHS, LSPCH, SCSF-SHC or SHC on one day and start employment with the University on the next University business day. (Exception: Only LPCH service on or after January 17, 1997 will be taken into account.)

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You are not eligible if:

ª You are a Police Sergeant or deputized patrol officer of the University,

ª You are a contingent employee with an approved appointment of less than 12 months or hired on any other temporary basis,

ª Your employment is governed by a collective bargaining agreement, unless it provides for participation in SCRP,

ª You are a post-doctoral fellow or researcher,

ª You made an irrevocable election to continue earning benefits under the SRAP,

ª You are a non-resident alien with no income from the U.S.,

ª You are a leased employee,

ª Your primary affiliation with your employer is as a student at Stanford,

ª You are normally scheduled to work less than 20 hours per week (unless you changed to less than 20 hours per week before January 1, 1997),

ª You are paid for your University work through the payroll of an organization other than the University, or

ª You are a Resident Fellow and are not otherwise eligible.

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E N R O L L M E N T

Eligible employees will be automatically enrolled and start receiving the University’s Basic Contribution(see University Basic Contribution, page 5) after completing the one-year service requirement. You maynot decline enrollment.

Reclassified EmployeesIf your job becomes subject to a collective bargaining agreement, you will become a participant in theretirement plan specified by your bargaining agreement and contributions to the SCRP may stop.

Re-EnrollmentIf you stop employment with the University and are later rehired, no additional waiting period isrequired to participate as long as you have completed at least one year of qualifying service.

Enrollment for Employee ContributionsAlthough you are automatically enrolled for University Basic Contributions, if you wish to makeEmployee Contributions and receive the University Matching Contributions, you must complete theenrollment process. Only employees making Employee Contributions receive University MatchingContributions in addition to the University Basic Contribution.

Before enrolling, determine the percentage of your salary you wish to save and your investment options. For help, go to the Stanford Benefits web site at http://benefits.stanford.edu and refer to Decide How Much to Contribute for Retirement.

For access to your Stanford Retirement Manager account go to the Stanford Benefits web site at http://benefits.stanford.edu or call (888) 793-8733 and a Retirement Services Specialist will help you enroll.

When you access your Stanford Retirement Manager account, you must:

ª Elect the whole percentage of your regular salary you wish to contribute each pay period.

ª Decide if you want your contributions on a before-tax and/or after-tax basis (see Employee Contributions, page 6).

ª Determine the percentage of contributions that you would like to direct to your Stanford Retirement Manager account and/or an account you have set up at TIAA-CREF. (If you do not have a TIAA-CREF account, you must complete a contract before contributions can be directed to TIAA-CREF.)

ª Choose the investment options for your contributions.

ª Complete a beneficiary designation for your Stanford Retirement Manager account and/or TIAA-CREF account.

Once you complete these steps, you will be enrolled in the SCRP. Please refer to the Stanford Benefits web site and the Stanford University TDA and SCRP Enrollment Guide for additional assistance.

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C O N T R I B U T I O N S

There are three ways your SCRP investment account balance can grow:

ª Basic and Matching Contributions from the University while employed,

ª Employee Contributions while employed, and

ª Interest or other investment earnings that continue after your employment ends.

The amount of money you accumulate in your retirement accounts depends on:

ª How much you and the University contribute,

ª How long contributions remain in the Plan, and

ª The investment performance of the investment funds you select.

The following are ways you and the University contribute to your retirement Plan. Remember, the level of University Basic and Matching Contributions in SCRP are reviewed regularly and are subject to IRS contribution limits and to change by the University.

University Basic ContributionThe University makes a Basic Contribution for all eligible participants. Employee Contributions are not required for you to receive the University Basic Contribution. The current Basic Contribution is 5% of your regular salary per pay period. For participants who first become employed by theUniversity after December 31, 2005, the University’s Basic Contribution will depend on years of qualifying service (see year of qualifying service, page 2), as follows:

Years of Qualifying Service Percentage of Salary1 1%2 2%3 3%4 4%5 5%

By law, the University cannot make Basic Contributions based on any regular salary over $210,000.This is the maximum for 2005 – the IRS may increase this amount from time to time to reflect increases in the cost of living.

Regular salary is your base salary for services to the University including any sabbatical pay, shift differential, summer supplement, paid leave, SCRP or TDA Employee Contributions and contributionsto a cafeteria plan under Educated Choices. Other extra pay not considered regular salary includesbonuses, honoraria, cash awards, overtime, one-time payments, Faculty Practice Plan and other bonuses,imputed income, housing allowances, travel reimbursements, and compensation from sources otherthan the University.

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Employee ContributionsWhen you enroll, you designate your Employee Contributions in whole percentages of regular salaryup to the federal contribution limits. (See Contribution Limits, page 8.) The definition of regular salaryis the same as explained above. Contributions begin the first pay period of the month after you enrollon your Stanford Retirement Manager account. Your Employee Contributions are shown on each paycheck. Your salary reduction election stays in effect until revoked by you or the University.

University Matching of Employee ContributionsThe University Matching Contribution is in addition to the University Basic Contribution. Currently,the University matches Employee Contributions each pay period according to the following schedule.

Regular salary is defined under the heading, University Basic Contributions. You may contribute morethan 4% of your salary to the Plan each pay period, but any amount over 4% does not increase theamount of the University’s Matching contribution.

When you contribute Stanford’s Matching Contribution is 0% of regular salary 0% of regular salary

1% 1.5%

2% 3%

3% 4%

4% 5%

Note: If the University stops or reduces your Employee Contributions due to the IRS limit, thenStanford’s Matching Contribution may also be stopped or reduced. You must contribute at least 4% in a pay period to receive the University’s 5% Matching Contribution for that pay period. For moreinformation see Contribution Limits, page 8.

RolloversThe SCRP does not accept rollovers from Individual Retirement Accounts (IRAs) or other employer sponsored retirement plans.

Changing Employee ContributionsYou may revoke or change your Employee Contribution amount at any time by going to your StanfordRetirement Manager account online at http://benefits.stanford.edu or calling a Retirement ServiceSpecialist at (888) 793-8733. Changes to your contributions or allocations become effective for the nextpay period.

Remember, if you lower your Employee Contributions below 4% of salary, that also decreases theUniversity’s Matching Contributions. If you elect to stop all Employee Contributions, you receive noMatching Contributions.

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Contributions During Leaves of AbsenceLeave With Salary: Basic, Employee and Matching Contributions to the SCRP continue if you are on a paid leave or vacation.

Leave Without Salary: No contributions will be made to the Plan if you are on an unpaid leave, or ondisability pay after sick leave is exhausted. After you return from a leave, University Basic Contributionsand Employee and Matching Contributions start automatically when you start receiving your regularsalary. Employee and Matching Contributions will be based on your most recent elections.

Contributions During SabbaticalYou may continue to contribute to the Plan during a paid sabbatical leave. Employee Contributions and University Basic and Matching Contributions during sabbatical leaves will be based on yoursabbatical salary.

Contributions When University Employment EndsAll SCRP contributions (yours and the University’s) stop when you stop working for the University for any reason. However, as long as you have an SCRP account balance you will continue to receivequarterly statements. In addition, you may:

ª Continue to direct the investment of your Plan account, but you may not make or receive additional Plan contributions.

ª Choose to withdraw from your Plan account balance, subject to federal, University and investment provider rules.

If your employment ends and you later return to work at the University as an eligible employee, Basic Contributions will automatically start again. To begin contributing Employee Contributions again, you must re-enroll by accessing your Stanford Retirement Manager account online at http://benefits.stanford.edu or call a Retirement Service Specialist at (888) 793-8733 for help.

Contributions While on Leave for Military ServiceIf you have an approved unpaid leave to serve on active duty in the United States Armed Forces, you may be eligible to:

ª Receive Basic Contributions during your leave,

ª Make retroactive Employee Contributions when you return, and

ª Receive retroactive Matching Contributions when you return.

If you think you may be eligible, please contact Stanford Benefits or SLAC Benefits Office.

Quarterly StatementsAt the end of every calendar quarter you receive a statement from the investment providers reportingUniversity Basic Contributions, Employee Contributions and Matching Contributions made during the quarter and investment fund performance.

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Contribution LimitsSCRP Plan Contributions are subject to calendar year limits under the Internal Revenue Code. The samelimits apply to your contributions in the Tax Deferred Annuity (TDA) Plan and certain retirement plans of other employers. Consequently, you may reach a limit based only on your SCRP contributionsor on a combination of TDA Plan and SCRP contributions. The University reserves the right to stop or reduce contributions to comply with these legal limits. However, it is your responsibility to monitorthe limits (particularly if you contribute to a non-Stanford plan) and to pay any taxes, tax penalties, or interest due as a result of excess contributions. If you have questions about the application of theselimits, you should consult your tax adviser. Generally, this is how the limits operate:

ª Annual limit on your contributions: You may contribute up to an annual dollar maximum of $14,000 if you are under age 50; $18,000 if age 50 or older by year-end. (These amounts are for2005. They increase to $15,000 and $20,000, respectively, in 2006 and may be adjusted from timeto time thereafter by the IRS to reflect changes in the cost of living.) These limits apply to pre-taxEmployee Contributions to SCRP and the TDA Plan combined, as well as before-tax contributionsyou make to 401(k) or 403(b) plans of other employers.

ª Special Catch-Up Limit on your contributions: If you have worked at Stanford for 15 or more years, you may be able to increase the above limits by as much as $3,000 for up to five years.Contact Stanford Benefits or the SLAC Benefits Office if you would like to receive information about this catch-up or to have your catch-up limits calculated. The University will not allow catch-up contributions without first calculating a limit for you. Consult your tax adviser if you have specificquestions about your situation.

Note: If you qualify for both this special catch-up and the extra contribution over age 50, but do not contribute both in full, the IRS may treat you as using your $3,000 catch-up first, before yourover age 50 amount. This means you could lose the benefit of this special catch-up.

ª Annual limit on all contributions: The IRS has an annual overall contribution maximum of $42,000 if you are under age 50; $46,000 if age 50 or older by year-end. (These amounts are for2005 and may be adjusted from time to time by the IRS to reflect changes in the cost of living.)These limits apply to the sum of University contributions and Employee Contributions to SCRP,any contributions you make to the TDA Plan, a Keogh Plan or other qualified retirement plan of an employer you control, or to another 403(b) plan at any other tax-exempt employer. If you ownyour own business or participate in any retirement plans in addition to the University’s, it is yourresponsibility to remain under the dollar limits.

ª Annual limit on compensation: The annual (calendar year) limit on compensation is $210,000 for measuring any retirement plan contribution. Once your regular salary reaches this limit, all contributions will stop for the remainder of the calendar year. (This limit is for 2005 and may be adjusted from time to time by the IRS.)

Important note: If the University stops or reduces your Employee Contributions because you havereached one of the IRS limits, the University’s Matching Contribution will also be stopped or reduced.Remember, you must contribute at least 4% in any pay period to receive the University’s maximum 5% Matching Contribution in that pay period. Employee Contributions and Matching Contributionscannot be made retroactively.

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TA X I N F O R M A T I O N O N C O N T R I B U T I O N S

Penalty Tax on Excess Contributions A 6% penalty tax applies to Plan mutual fund contributions in excess of certain limits. This tax is more fully described in IRS Publication 571.

Stanford Benefits and SLAC Benefits Office can provide information to help determine your maximum allowable contributions. You may also obtain a copy of IRS Publication 571 that explains the contribution limits by calling the IRS at (800) 829-3676, or printing a copy from the IRS web site at http://www.irs.gov.

General Tax Information on Plan ContributionsThe tax information provided here is general information only. For specifics on how the rules affect you, you should consult your tax adviser.

If you follow federal contribution limits and contribute to the Plan on a before-tax basis, you pay nocurrent federal or (in most cases) state income taxes on the salary you contribute. This feature makes the Plan a valuable tool for saving for the future and reducing your taxes today. All before-tax SCRPcontributions (yours and the University’s) and their investment earnings are not taxable until youreceive the money.

This example shows the difference between putting money aside on a before-tax and after-tax basis.Assume you:

ª Are single and claim one exemption

ª Earn $32,000 annually (paid on a semi-monthly basis), and

ª Contribute 10% of your pay ($3,200) on a before-tax basis.

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In this example, you only pay income taxes on $28,800 instead of $32,000 ($32,000 - $3,200 = $28,800). Taxes on contributions are deferred. This means you pay taxes on your contributions and their earnings(if any) in the future, when you receive payments from the Plan.

With SCRP Without SCRP

Your income $ 32,000 $ 32,000

If you contribute 10% on a before-tax basis to SCRP 3,200 0

Income subject to taxes 28,800 32,000

Estimated federal and state income taxes* 3,725 4,397

If you save 10% on an after-tax basis 0 3,200

Spendable income 25,075 24,403

Increase in spendable income 672

*Based on 2005 federal and California tax tables.

In this example, taxes were reduced by $672 a year in addition to saving $3,200 in your tax-deferredaccount. In other words, the $3,200 savings only cost $2,528 in take-home pay today. Taxes will be paid on SCRP contributions and earnings when they are withdrawn from the Plan. But in the meantime, you enjoy the advantage of tax-deferred savings and earnings.

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I N V E S T M E N T O P T I O N S

You direct the investment fund selections for Basic, Employee and Matching Contributions. UniversityContributions are put in the same investment funds you choose for your Employee Contributions. Youmay select from any of the available Plan investment fund options. If you do not select an investmentfund for the University’s Basic Contributions, they will be deposited automatically into a University-selected investment fund in your name. You can get the fund name from Stanford Benefits or SLACBenefits Office. This fund may change from time to time.

General information about the Plan investment providers is available on the Stanford Benefits web siteand from Stanford Benefits or SLAC Benefits Office. In addition, each investment provider can sendyou a prospectus or other written description of its funds. Be sure to read the written descriptionsbefore making your investment choices.

The investment providers available for Plan contributions are:

Fidelity Investments TIAA/CREF The Vanguard GroupP.O. Box 31401 730 Third Avenue P.O. Box 1101Salt Lake City, UT 84131 New York, NY 10017 Valley Forge, PA 19482(800) 343-0860 (800) 842-2776 (800) 523-1188www.fidelity.com www.tiaa-cref.org www.vanguard.com

Note: For contributions to be invested with TIAA/CREF, you must complete a separate contract. Go to their web site listed above for the enrollment form/contract and instructions.

For additional investment information, log on to your Stanford Retirement Manager account and go to the Stanford Retirement Manager Account Investment Options brochure.

Investment ResponsibilityThe SCRP is intended to constitute a plan described in Section 404(c) of ERISA and Department ofLabor regulation section 2550.404c-1. This means the Plan provides you with the opportunity andobligation to:

ª Choose from a broad range of investments, and

ª Take responsibility for your own decisions on the investment of the assets in your own account.

You will be provided with information necessary to make informed decisions on your investmentoptions and the incidents of ownership that arise from those investments.

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The Plan Administrator and others who are responsible for the operation of the Plan (called fiduciaries)are obligated, with certain limited exceptions, to comply with your investment instructions. As a result,they are generally relieved of liability for any losses which are the direct and necessary result of your exercise of control as to the investment of the assets in your own account. Although the plan’s fiduciaries are generally obligated to comply with your instructions, they are not required to implement a directionthat would result in a prohibited transaction or would generate taxable income to the Plan.

Amounts held in your account are subject to increases or decreases in value depending on the invest-ment options you select and their performance. In addition, your share of reasonable expenses toadminister the Plan may, at the Plan Administrator’s discretion, be paid out of your account assets. The investment providers charge fees for investment management and other services provided to theinvestment funds they manage, which are charged directly to each of the funds. Any other investmentfunds made available from time to time may also charge fees.

Information concerning the investment options offered by each investment provider is given to you inenrollment and information packets. The packets include descriptions of the investment objectives andthe risk and return characteristics, as well as information relating to the type and diversification of assetsmaking up the portfolio of each fund or contract. For more specific details regarding the funds andinvestments, please contact the investment providers directly. You may obtain the following additionalinformation concerning the investment options available under the Plan by contacting Stanford Benefitsor your investment provider:

ª A description of the annual operating expenses of each available investment fund (e.g., investment management fees, administrative fees, and transaction costs) which reduce the rate of return, and theaggregate amount of such expenses expressed as a percentage of average net assets of the designatedinvestment option,

ª Copies of any prospectuses, financial statements and reports, and of any other materials relating to the investment funds available under the Plan,

ª Information concerning the value of shares or units in each investment fund, as well as past and current investment performance, determined, net of expenses, on a reasonable and consistent basis, and

ª Information concerning the value of shares of a mutual fund held in your account.

You are strongly encouraged to read all of the prospectus and similar descriptions and disclosure materials relating to investment options under the Plan prior to making an investment decision.

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Changing Your Investment Company or Fund ChoicesYou may change your investment funds for future contributions at any time.

ª For Fidelity and Vanguard funds, go to the Stanford Retirement Manager site at http://benefits.stanford.edu or call (888) 793-8733 and speak to a Retirement Services Specialist.

ª To change your TIAA-CREF investment option allocation, contact TIAA-CREF directly.

Most of the investment funds available under the Plan permit transfer of previous contributions andearnings to any other investment provider or fund available. You can generally transfer existing balancesin one investment fund to another through your Stanford Retirement Manager account. To transfer anexisting balance to TIAA-CREF, you must contact TIAA-CREF directly. Some investment providersmay impose restrictions or charge a fee for certain transactions. Check with each investment providerabout its rules and charges.

How Investments GrowTo understand how investments may grow over time, we have an example using three different employees. For each employee, assume:

ª You save today,

ª You receive a 3% annual salary increase,

ª You make a 4% Employee Contribution to SCRP (and receive a 5% University Basic Contribution and a 5% Matching Contribution of 5%) = total annual contribution of 14%,

ª Your account increases by investment earnings of 6% (or 8%), and

ª You retire at age 65.

Your age Your salary Total annual Your annual At age 65 your today today contribution Investment earnings total investment

25 $25,000 14% 6% $ 844,012

8% 1,344,069

38 $38,000 14% 6% 475,092

8% 638,128

50 $50,000 14% 6% 201,541

8% 235,028

You can see how length of time for investments is important to increase savings. However, the amounts shown in this example are based on assumptions and do not guarantee continued employment to age 65, salary increases, future contribution rates, or earnings. Your actual accumulations can vary significantly.If any of these percentages are smaller than assumed, your accumulations at age 65 will be smaller.

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After-Tax Contributions SCRP contributions may also be made on an after-tax basis. This means the contribution is subtractedfrom your gross pay after taxes are calculated. Therefore, you will already have paid income tax on thesecontributions to SCRP. When you take a distribution from SCRP, you will owe income tax only on the investment earnings, not your after-tax contributions. You may make after-tax contributions at any time. After-tax contributions allow you to continue putting money into your account and receiveUniversity Matching Contributions when you reach certain IRS limits on before-tax contributions. You may stop after-tax contributions at any time. To make after-tax contributions go to the StanfordRetirement Manager site at http://benefits.stanford.edu or call (888) 793-8733 and speak to aRetirement Services Specialist.

VestingAll SCRP contributions (yours and the University’s) and investment fund earnings are fully and immediately vested (non-forfeitable). This means that you have 100% ownership at the time contributions and earnings are made and you keep the right to all contributions and earnings when you leave the University (subject to federal, University, and investment fund distribution rules).

Non-Discrimination TestsIn accordance with IRS requirements, the Plan must pass a non-discrimination test each year. This testensures that After-tax Contributions and University Matching contributions for higher-paid employees (as an average percentage of regular salary) are not substantially more than those for other eligibleemployees. If the test is not satisfied, actions will be taken to bring the Plan into compliance. For example, University contributions for highly-paid employees may be reduced. If adjustments are made to pass non-discrimination tests, affected plan participants will be notified in writing.

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B E N E F I C I A R Y I N F O R M A T I O N

Naming a BeneficiaryWhen you begin SCRP participation, you will be asked to name a beneficiary to receive your SCRPaccumulations (contributions and earnings) if you die. Each investment provider requires a beneficiarydesignation form with their application. That designation will apply to Plan contributions (yours andthe University’s) invested with that provider.

You may change a beneficiary at any time, as long as you follow the rules for spousal waivers if you are married. To name or change a beneficiary, complete a new beneficiary form available from yourStanford Retirement Manager account, TIAA-CREF, Stanford Benefits or the SLAC Benefits Office.

You should consult your legal counsel about the effects of naming or not naming a beneficiary.

Spousal Rights to BenefitsFederal law requires married participants to receive retirement benefits in the form of a 50% Joint andSurvivor Annuity, also known as a Qualified Joint and Survivor Annuity (QJSA), unless they choose adifferent form. A QJSA provides you with annuity payments for your lifetime, and after you die youspouse will receive 50% of your monthly payment for his/her lifetime. You and your spouse may chooseto receive your benefits in another form, but your spouse must consent in writing on the appropriateform provided by each of your investment providers. See Waiver of Spousal Rights, page 16. Federal lawalso gives other rights to the spouse of SCRP participants, including:

Survivor Annuity if You Die Before Starting Retirement BenefitsIf you are married, federal law requires that your surviving spouse receive an annuity (a Qualified Pre-Retirement Survivor Annuity, or QPSA) with a value at least equal to 50% of your Plan accountsunless your spouse waives that right in writing. If your spouse waives rights to a QPSA in writing, you may designate someone else to receive 100% of your Plan benefits if you die before receiving them. Waiver of QPSA rights must be on the appropriate form available from each of your investmentproviders. For details, see below. If your spouse does not consent, he/she remains entitled to receive the 50% benefit and your designated beneficiary or beneficiaries (other than a spouse) will receive the difference between 100% of your Plan benefits and the amount due to your spouse.

Spousal Rights Under California Community Property LawsGenerally, California law gives a spouse the right to a one-half interest in marital property, includingeach spouse’s earnings. You and your spouse should consult your legal counsel about rights under federaland California law. The elections and waivers described in Waiver of Spousal Rights, page 16, affectrights under California and federal law.

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Waiver of Spousal Rightsª If you are married and elect a benefit option that affects your spouse’s right to the Qualified Joint

and Survivor Annuity or the Qualified Pre-Retirement Survivor Annuity, your spouse must consentin writing to give up their rights to benefits from the Plan. Consent must be on the appropriate formprovided by each of your investment providers and your spouse’s signature must be witnessed byeither a notary public or an authorized Plan Representative at Stanford Benefits or the SLACBenefits office. If you cannot get spousal consent for any reason permitted under applicable federalrules, you must prove that to the satisfaction of the Plan Administrator.

ª If you are married and:

• You are under age 35, and

• You have named a non-spouse beneficiary, and

• Your spouse has already signed a waiver.

Your spouse must sign another consent form when you reach age 35 or leave the University, whichever happens first. This is a legal requirement, not University policy.

ª If you remarry, any waiver given by a former spouse does not affect the rights of your new spouse. Your new spouse’s written consent will be required for any election that affects his/her rights underfederal or state law. You may revoke the elections and waivers at any time before you start your benefit payments. If you change from one non-spouse beneficiary to another, your spouse must signa new written consent, unless your spouse has signed a blanket waiver giving you the ability tochange beneficiaries without further consent. Also, if you are already receiving your benefits in theform of a QJSA and you divorce and remarry, your original spouse will still receive his/her benefitswhen you die.

If You Divorce – Getting a QDROBy law, state court marital dissolution or separation orders affecting retirement plans are required tocomply with the federal definition of a Qualified Domestic Relations Order (QDRO). The PlanAdministrator is required to review the state court order in any dissolution proceeding, and to decidewhether the order is a QDRO. The court issues the order, but the Plan Administrator must approve it.Therefore, you should contact Stanford Benefits or the SLAC Benefits Office to arrange for a review of a court order. If you and your spouse agree how to divide your University retirement benefits or ifyour spouse agrees to waive his/her rights to your benefits under your retirement plan, federal law stillrequires that the Plan Administrator for SCRP review that agreement or court order. It is easier for thePlan Administrator, you and the court if you contact the Plan Administrator before your court-ordered marital dissolution becomes final. You and your spouse should each consult legal counsel about rightsunder federal and state law.

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L O A N S A N D H A R D S H I P D I S T R I B U T I O N S

LoansWith spousal consent in accordance with plan rules (if applicable) you may borrow part of the contributions in your Fidelity or Vanguard account. You may not take a loan from your TIAA-CREFfunds. The minimum loan amount is $1,000. The maximum is the lesser of 50% of your account balance or $50,000 (reduced by any loan from this Plan and any other University plan during the previous 12-month period which ends on the day before the loan is made).

You can have only one outstanding loan at any time. The interest rate for your loan is the prime rateplus 1% at the time you request your loan. You may elect to repay your loan in one to five years. If the loan is for the purchase of a primary residence, you may repay your loan over a period of 15 years.

To apply for a loan, call (888) 793-8733 to speak with a Fidelity Representative. You can model loan scenarios by logging on to the Stanford Retirement Manager account through http://benefits.stanford.edu.

Hardship Distributions While Employed by the UniversityYou may qualify for a financial hardship distribution from your Employee Contributions (and investment earnings credited on those contributions before 1988). A financial hardship is an immediate and heavy financial need arising from:

ª Tax-deductible medical expenses not covered by medical insurance and incurred by you, your spouse, or any of your dependents,

ª Costs directly related to the purchase of a principal residence (excluding mortgage payments),

ª Payment of tuition and related educational expenses for the next 12 months of post-secondary education for you, your spouse, or your dependents,

ª Payments necessary to prevent eviction from your principal residence or foreclosure of the mortgage on your principal residence,

ª Payments for burial or funeral expenses for your deceased parent, spouse, child(ren) or dependent, or

ª Expenses for the repair of damage to your principal resident that would qualify for a casualty deduction under the Internal Revenue Code.

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You will be required to submit written evidence of both the nature and amount of financial need. If you are married at the time you request a financial hardship distribution, your spouse must consentto the distribution.

The amount available for a hardship distribution is limited.

ª You may not withdraw more than your account balance.

ª You may not withdraw any investment gains earned on or after January 1, 1989.

ª You must first apply for all other distributions and nontaxable loans available to you under the University-sponsored plans (other than hardship distributions under the Stanford University TaxDeferred Annuity Plan).

ª An investment provider’s custodial agreement or annuity contract may impose additional limits.

ª You may not withdraw more than your current financial need. Amounts withdrawn to satisfy your tax liability on a hardship distribution are included in the determination of your financial need.

Hardship distribution instructions and application forms are available by contacting Stanford Benefits or the SLAC Benefits Office.

General Tax Information on Hardship WithdrawalsIn accordance with the Internal Revenue Code, hardship withdrawals are taxed as ordinary income plus a 10% early withdrawal penalty if you take the distribution before age 591/2. (Except you may be able to deduct medical and casualty expenses)

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A P P L Y I N G F O R B E N E F I T S

You need to apply for benefits from SCRP before any payments can begin. To get things started, contact your investment providers and specify whether you want a lump sum payment, a retirement annuity, or both. File your application at least 30 days before the date you want your benefit payments to start.

Distribution After Employment EndsYou may begin to receive Plan benefits any time after you separate from service (subject to federal,University, and investment provider rules regarding forms of benefit payments). You may roll over yourPlan benefits into an Individual Retirement Account (IRA) or another employer-sponsored 403(b) orqualified retirement plan or an eligible government deferred compensation plan that accepts rollovers.To take a distribution, you must complete a distribution form and have it signed by an authorizedStanford Benefits representative.

You are not required to begin receiving payment of benefits until April 1 of the year following the end of the year in which you reach age 701/2, or the year you retire, if later.

If you separate from service, elect to start a distribution, and are later rehired by the University, the distribution may continue:

ª If you reached age 591/2 before your rehire, or

ª If you had a bona fide separation from service of at least one year.

Distribution If You Die Before Benefits BeginIf you die before you begin receiving any benefits, your beneficiary will receive the benefit designated by the form of payment you previously chose. If you do not specify a form of payment before you die,your beneficiary may choose an appropriate method of payment.

If you selected an annuity and named a joint annuitant to receive an annuity after you die, the electionyou made will govern how your beneficiary receives the annuity.

If you have not named a joint annuitant for your Plan benefits and die without a surviving spouse orbefore your entire Plan benefits have been distributed, your Plan benefits will be paid to your estate.

Normal Retirement DateThe normal retirement date for SCRP is the first day of the month following the month in which youreach age 65. Plan participation, contribution, investment and distribution rules are the same beforeand after normal retirement date.

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PA Y M E N T O P T I O N S

SCRP benefits are payable in several ways: As a lump sum, an annuity or a combination of both. A lump sum is a withdrawal of all or a portion of your SCRP benefits any time after you retire or otherwise stop University employment. Several rules affect your ability to take a lump sum distribution,or to roll over your SCRP account balance into an Individual Retirement Account (IRA) or anotherplan. These are explained below.

An annuity pays out your benefit in approximately even payments on a monthly or quarterly basis for a specified period of time (for example, 10 years or your remaining lifetime). You may obtain yourannuity directly from TIAA-CREF by transferring your entire SCRP account balance to TIAA-CREFbefore retirement. Or, you may purchase an annuity from another company when Fidelity or Vanguardacts as broker. Once your payments begin under any type of annuity, you may not change to a lumpsum or any other payment form.

If you are married at the time payments are to begin, federal law requires that you receive your benefits in the form of a Qualified Joint and Survivor Annuity (QJSA) which pays at least 50% of the benefit in an annuity to your spouse after you die. Or, you may choose another payment form by naming abeneficiary other than your spouse, subject to the terms of each annuity contract and custodial account.Naming a substitute beneficiary requires the written consent of your spouse. See Waiver of SpousalRights, page 16.

If you are not married on the date payments are to begin, your SCRP benefits will be paid as a lumpsum or as an annuity, depending on your selection.

Qualified Joint and Survivor Annuity (QJSA)Your SCRP accumulations must be paid in the form of a QJSA if you are married when paymentsbegin, unless your spouse waives rights to a QJSA. (A joint and survivor annuity is also available toshare payments with someone else, whether of not you are married.) With a QJSA, you receive annuitypayments for your lifetime. After you die, your spouse will receive payments equal to a portion (usually50%) of your monthly payment for the balance of his/her lifetime. Because these annuity payments willbe spread over the lives of two individuals, the amount of your payment will be less than it would beunder a Single Life Annuity (see below). The exact amount of your annuity and your spouse’s dependson age and other actuarial factors at the time payments begin. If you elect an annuity other than theQJSA and you are married, your spouse must consent in writing. For more information see SpousalRights to Benefits, page 15.

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Single Life AnnuityIf you elect a Single Life Annuity, you receive a monthly or quarterly payment for your lifetime.Payments stop when you die. If you are married and elect this form of benefit, your spouse must consent. For more information see Spousal Rights to Benefits, page 15.

Variable AnnuitiesThese reflect the value of the underlying investments (stock annuities, money market annuities or acombination of both). Payments vary year to year, depending on the investment performance of theunderlying investment fund.

Fixed AnnuitiesThese provide a guaranteed minimum payment. Interest rate assumptions may change from year to year causing the annuity amount to fluctuate, but not below a guaranteed amount.

Lump Sum DistributionsThe Plan permits you to receive a lump sum distribution of all or any portion of your SCRP benefitonce you separate from service.

Payment to Surviving Spouses and BeneficiariesGenerally, if you die before starting your retirement annuity, your surviving spouse or other beneficiarymay elect to defer annuity payments until the end of the calendar year in which you would havereached age 701/2. Otherwise, your surviving spouse or other beneficiary must start annuity paymentsby the end of the calendar year following the year of your death, or take a lump sum payable within five years after the year of your death.

If you die after starting to receive your retirement annuity, your spouse or beneficiary will receive anybenefits due under the payment option you selected. By federal law, the distribution of benefits must be made as rapidly as under the method of payment in effect at the time of your death.

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TA X I N F O R M A T I O N O N D I S T R I B U T I O N S A N D R O L L O V E R S

Taxes on DistributionsMost distributions from SCRP are taxable as ordinary income. After-tax contributions are not taxedagain at distribution; however, their earnings are taxed when distributed. To ensure that the governmentreceives income taxes due, the investment provider will withhold income taxes (20% on lump sums orannuities paid for less than 10 years) on all such distributions greater than $200. You must pay anyadditional federal income taxes due plus any state income taxes that may be due.

Distributions made before you attain age 591/2 are subject to a 10% federal penalty tax in addition toordinary income tax. This 10% penalty tax applies to all distributions made before you reach age 591/2

unless one of several exceptions apply. Common exceptions include:

ª You retire at age 55 or older.

ª The distribution is in the form of regular payments for life with payments based on your life expectancy.

ª The distribution is attributable to your permanent disability or death.

ª The distribution was used for tax-deductible medical expenses.

General Tax Information on Your DistributionTaxes differ depending on the type of distribution you request. Distributions from TIAA-CREF may besubject to restrictions. More on the types of annuities available to you can be found on the previous page.

ª Lump sum – If you are over age 591/2, taxed as ordinary income. If you are under age 591/2,taxed as ordinary income plus 10% IRS early withdrawal penalty (with some exceptions).

ª Rollover to an IRA, another 403(b) plan, a qualified retirement plan, or an eligible governmental deferred compensation plan – Not subject to taxation and tax-deferral continues.

ª Annuities – Taxed as ordinary income as you receive payments.

ª Combo – Depends on distribution.

Taxes on RolloversIf you want to defer taxes on a lump sum or periodic distribution paid for less than 10 years, you may be able to roll over the full amount, before withholding, into an IRA or another employer’s plan. Allrollovers must occur within 60 days of receipt of your lump sum or periodic distribution.

Additional Tax InformationFor further general information on taxes and rollovers on Plan distributions, please refer to the brochure, When Your Employment Ends available from Stanford Benefits or the SLAC Benefits Office. You shouldalso check with the investment providers and your tax adviser on how the tax rules apply to you.

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H O W B E N E F I T S M I G H T B E L O S T O R D E C R E A S E D

There are circumstances that could cause you to lose your rights to distribution payments or decreasethe value of your accumulations under the SCRP:

ª Amounts invested under the SCRP are subject to increases or decreases in value depending on the investment options you choose and the investment performance of those options.

ª If your contributions to the SCRP exceed certain IRS limits (see Contribution Limits, page 8), part of your contributions may be returned to you.

ª Because payments from the SCRP may be based on a valuation date which is not the date benefit payments are made, the amount of any payments may not be equal to the fair market value of assetsin your account as of the date of the payments.

ª Some annuity contracts may impose surrender charges if you decide to transfer funds to other investment providers. Any such charges are disclosed in the investment materials provided by theinvestment provider.

ª Because the SCRP is a defined contribution plan established under Internal Revenue Code Section 403(b), your account balance is not insured under Title IV of ERISA or by the Pension BenefitsGuaranty Corporation if the Plan terminates.

ª All or a portion of your accumulations under the SCRP may be assigned under a Qualified Domestic Relations Order (QDRO). See If You Divorce – Getting a QDRO, page 16.

ª If you do not keep your current address on file with each investment provider that holds an account balance on your behalf under the SCRP, the payment of your benefits could be delayed.

R E Q U E S T S F O R I N F O R M A T I O N

Requests for information and claims concerning Plan eligibility, participation, contributions or how the Plan operates should be made in writing to Stanford Benefits or the SLAC Benefits Office.

If you work at SLAC:

SLAC Benefits Office, Bin 112575 Sand Hill RoadMenlo Park, CA 94025 (650) 926-2357

For all others:

Stanford Benefits320 Panama StreetStanford, CA 94305-4610(650) 736-2985

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25

C L A I M S P R O C E D U R E S A N D R I G H T S F O R R E V I E W

If you believe that you are being denied any rights or benefits under the Plan, you (or your duly authorized representative) may file a claim in writing with the Plan Administrator through StanfordBenefits or the SLAC Benefits Office.

If your claim is denied, in whole or in part, the Plan Administrator will notify you in writing (or electronically), giving the specific reasons for the decision, including specific reference to the pertinent Plan provisions and a description of any additional material or information necessary to perfect your claim and an explanation of why such material or information is necessary. The notice will also advise you of your right to request a review of your claim, the steps you need to follow if youwish to submit your claim for review, and your right to file suit in federal or state court if your claim is denied on review. Such notification will be given within 90 days after your claim is received by thePlan Administrator (or within 180 days, if special circumstances exist requiring additional time and you received a written explanation for the extension within the initial 90-day period). At that time, you may request a review of the denial of your claim.

At any time within 60 days after receipt of a notice of denial, you or your duly authorized representative may submit a written request for review to the Plan Administrator. As part of the request, you (or yourduly authorized representative) may submit written issues and comments to the Plan Administrator andmay review or request copies of pertinent documents (free of charge). The Plan Administrator’s decisionwill be communicated in writing (or electronically if permissible under applicable law) within 60 daysafter your request has been received (or 120 days if special circumstances exist requiring more than 60 days and written notice of the extension is provided to you within the initial 60-day period). Again, the decision will include specific reasons, including references to pertinent Plan provisions. If yourclaim is denied on review, the notification will also include a statement of your right to review orrequest copies of pertinent documents (free of charge) and to file a suit in federal or state court due to the denial of the claim.

Special rules may apply if your claim relates to your status as a disabled participant. The Plan’s full claims and appeals procedures can be found in Appendix A, page 31.

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Plan Name Stanford Contributory Retirement Plan

Type of Plan Defined contribution retirement plan, establishedunder Section 403(b) of the Internal RevenueCode of 1986.

How the Plan is FundedThe Plan is funded by contributions from Planparticipants and the University.

Plan Identification Number – 001

Plan Sponsor's Identification Number 94-1156365

Plan Year – January 1 to December 31

Plan Sponsor and EmployerThe Board of Trustees of the Leland StanfordJunior Universityc/o Stanford Benefits320 Panama StreetStanford, CA 94305-4610

Plan Administrator and Service of Legal ProcessExecutive Director of Human ResourcesStanford University c/o Stanford Benefits320 Panama StreetStanford, CA 94305-4610

The Plan Administrator is the Plan’s agent forservice of legal process. The Plan Administratorhas the discretionary authority to interpret andadminister the Plan. Subject to a request forreview of denied claims, decisions are final andbinding.

Plan Administration and FundingStanford University administers eligibility, participation, and contributions for the Plan.Investment allocations and transfers are made byinvestment providers upon employee directions.Investment providers also perform administrativefunctions for other aspects of the Plan.

Plan DocumentIn the event of any conflict or inconsistencybetween this Summary Plan Description and theofficial Plan Document, the Plan Document willgovern. A copy of the Plan Document is availablefor inspection at Stanford Benefits and the SLACBenefits Office.

Plan Changes or TerminationThe University reserves the right to change or terminate the Plan at any time. Participants willbe notified of changes as required by law. If thePlan is changed or terminated, each participant’srights to Plan contracts and investments willremain fully vested. Upon and after termination,no further contributions will be made. All benefits under this Plan are provided throughannuity contracts or custodial accounts underInternal Revenue Code Section 403(b) and arenot subject to, or covered by, Title IV of ERISAor federal pension plan termination insurance.

Non-AssignmentTo the extent permitted by law, Plan benefits maynot be assigned or attached to meet the claims ofany creditor, and any attempt to assign or attachsuch benefits shall be void and unenforceable.

Employment RightsNeither eligibility for nor participation in thisPlan constitutes any promise or guarantee of current or future employment.

G E N E R A L P L A N I N F O R M A T I O N

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As a participant in the Stanford ContributoryRetirement Plan, you are also entitled to certainrights and protections under the EmployeeRetirement Income Security Act of 1974(ERISA). ERISA provides that all Plan participants shall be entitled to:

ª Examine, without charge, at Stanford Benefits or the SLAC Benefits Office and at other loca-tions, such as worksites and union halls, all documents governing the Plan, including thegroup annuity contract, collective bargainingagreements and a copy of the latest annualreport (Form 5500 series) filed by the Planwith the U.S. Department of Labor and available at the Public Disclosure Room of theEmployee Benefits Security Administration.

ª Obtain, upon written request to the Plan Administrator, copies of documents governingthe operation of the Plan, including the group annuity contract, collective bargaining agreements and copies of the latest annualreport (Form 5500) and updated summaryplan description. The Plan Administrator may make a reasonable charge for the copies.

ª Receive a summary of the Plan’s annual financial report. The Plan Administrator isrequired by law to furnish each participantwith a copy of this summary annual report.

ª Obtain a statement telling you whether you have a right to receive a pension at normalretirement age (age 65) and if so, what yourbenefits would be at normal retirement age if you accrued no further benefits under thePlan. If you do not have a right to a pension,the statement will tell you how many moreyears you have to work to get a right to a pension. This statement must be requested inwriting, and is not required to be given morethan once every 12 months. The Plan mustprovide the statement free of charge.

In addition to creating rights for Plan partici-pants, ERISA imposes duties upon the peoplewho are responsible for the operation of the Plan. The people who operate your Plan, called"fiduciaries" of the Plan, have a duty to operatethe Plan prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwisediscriminate against you in any way to preventyou from obtaining a pension benefit or exercising your rights under ERISA.

If your claim for a pension benefit is denied orignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision withoutcharge, and to appeal any denial, all within certain time schedules.

Y O U R R I G H T S U N D E R E R I S A

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Under ERISA, there are steps you can take toenforce the above rights. For instance, if yourequest a copy of Plan documents or the latestannual report from the Plan and do not receivethem within 30 days, you may file suit in a federal court. In such a case, the court mayrequire the Plan Administrator to provide thematerials and pay you up to $110 a day until you receive the materials, unless the materialswere not sent because of the 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 suitin a state or federal court. In addition, if you disagree with the Plan’s decision or lack thereofconcerning the qualified status of a domestic relations order, you may file suit in federal court.If it should happen that Plan fiduciaries misusethe Plan’s money, or if you are discriminatedagainst for asserting your rights, you may seekassistance from the U.S. Department of Labor, or you may file suit in a federal court. The courtwill decide who should pay court costs and legalfees. If you are successful the court may order theperson you have sued to pay these costs and fees.If you lose, the court may order you to pay thesecosts and fees, for example, if it finds your claimis frivolous.

If you have any questions about the Plan, youshould contact the Plan Administrator in care of Stanford Benefits or the SLAC Benefits Office.If you have any questions about this statement or your rights under ERISA, or if you need assistance in obtaining documents from the PlanAdministrator, you should contact the nearestoffice of the Employee Benefits SecurityAdministration, U.S. Department of Labor, listedin your telephone directory or the Division ofTechnical Assistance and Inquiries, EmployeeBenefits Security Administration, U.S.Department of Labor, 200 Constitution AvenueN.W., Washington, D.C. 20210. You may alsoobtain certain publications about your rights and responsibilities under ERISA by calling thepublications hotline of the Employee BenefitsSecurity Administration.

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Annuity: An amount paid at regular intervals(generally monthly) at retirement. The regularpayments are guaranteed by an insurance company and are generally payable for at leastyour lifetime and possibly beyond, depending on the form of annuity you select.

Beneficiary: The person(s) designated by you to receive benefits from this Plan in the event of your death.

Basic Contribution: A Basic Contribution to thePlan by the University is made for a participantwhether or not the employee makes EmployeeContributions. The current amount of BasicContributions is 5% of the employee’s regularsalary, up to IRS limits.

Before-Tax Contributions: EmployeeContributions made to the Plan before federal and state income taxes are calculated and subtracted from gross wages.

Employee Contributions: EmployeeContributions are a participant’s own contributions. Employee Contributions to the Plan may be made before-tax or after-taxand are subject to limits imposed by the IRS.

Matching Contributions: A MatchingContribution is made by the University for a participant when the participant contributes his/her own pay. See Matching Contributions,page 6.

Employer: The Board of Trustees of the Leland Stanford Junior University, known also as Stanford University.

ERISA: Employee Retirement Income Security Act of 1974, as amended.

Financial Hardship: An immediate and heavyfinancial need as defined in Internal RevenueCode regulations adopted by the Plan. SeeHardship Withdrawal While Employed by theUniversity, page 17.

Investment Provider: A mutual fund provider or insurance company selected by Stanford toprovide investment options.

Normal Retirement Date: The first day of the month following the month in which the participant reaches age 65.

Participant: An eligible employee enrolled in the Plan and any other individual who has vested rights to Plan benefits.

Plan: The Stanford Contributory RetirementPlan (SCRP).

Plan Administrator: The Executive Director of Human Resources.

Plan Contributions: Basic, Employee andMatching Contributions.

Plan Year: January 1 through December 31 of each calendar year.

D E F I N I T I O N S

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Prospectus: An official document issued by aninvestment provider, describing an investmentfund. The prospectus contains informationrequired by the Securities and ExchangeCommission on such subjects as the fund’s investment objectives and policies, services,investment restrictions, officers and directors, and expenses. The prospectus is a major source of information on the investment fund. Youshould read the prospectus before choosing afund. A copy of the prospectus for each Planinvestment fund is available from the applicableinvestment provider. You may log ontohttp://benefits.stanford.edu where you will find links to web sites from Fidelity, Vanguardand TIAA-CREF. Please refer to the StanfordRetirement Manger Account Investment Optionsbrochure for additional information.

Regular Salary: The participant’s salary for services to Stanford University plus any sabbaticalpay, supplemental pay, shift differential, summersupplement, and paid leave up to the legal salarylimit of $210,000 (as indexed) per calendar year. Other extra pay such as overtime, one-time payments, cash awards, bonuses, EducatedChoices choice dollars, imputed income, honoraria, housing allowances, travel reimbursements, and compensation from sources other than Stanford University are notincluded in calculations for Plan contributions.

Spousal Consent: As defined in this SPD, aspouse’s acknowledgment in writing to waivehis/her right to a benefit under the Plan.

Vested Benefit: A benefit which cannot be forfeited.

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These Procedures for filing and reviewing Claimshave been established and adopted pursuant toSection 12.4 of the Plan and are intended tocomply with Section 503 of the EmployeeRetirement Income Security Act of 1974, asamended (ERISA), and the related Departmentof Labor Regulations. They are effective forClaims made under the Plans on or after January 1, 2002.

1. In General. Any employee or former employee, or any person claiming to be a beneficiary or analternate payee named in a qualified domestic relations order with respect to such person,may request:

ª a benefit payment from the Plan,

ª a resolution of a disputed amount of benefit payment from the Plan, or

ª a resolution of a dispute as to whether the person is entitled to the particular form of benefit payment under the Plan.

A request described above and filed in accordancewith these Procedures is a claim and the personon whose behalf the claim is filed is a claimant. Aclaim must relate to a benefit which the claimantasserts he or she is already entitled to receive orwill become entitled to receive within one yearfollowing the date the claim is filed.

2. Effect on Benefit Requests in Due Course.The Plan has established procedures for benefit applications, selection of benefit forms,designation of beneficiaries, determination ofqualified domestic relations orders, and similarroutine requests and inquiries relating to theoperation of the Plan. Many of these are setforth in the Summary Plan Description for thePlan or other materials provided to employees,or are avail-able by contacting StanfordBenefits or the SLAC Benefits Office. Suchroutine requests and applications are notclaims to be resolved under these Proceduresand must be utilized fully before filing aclaim. However, an employee, former employ-ee, or individual claiming to be a beneficiaryor alternate payee, who wishes to dispute adetermination resulting from such routine pro-cessing, may file a claim as described.

3. Filing of Claims. Each claim must be in writing and delivered by hand or first-classmail (including registered or certified mail) tothe Executive Director of Human Resources(the Plan Administrator), at one of theaddresses listed on page 24.

A claim must clearly state the specific outcomebeing sought by the claimant. The claim mustalso include sufficient information relating tothe identity of the claimant and such otherinformation reasonably necessary to allow theclaim to be evaluated.

A P P E N D I X A – C L A I M S P R O C E D U R E S

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4. Processing of Claims. A claim normally shall be processed and determined by the PlanAdministrator within a reasonable time (but no longer than 90 days) following actualreceipt of the claim. However, if the PlanAdministrator determines that additional timeis needed to process the claim and so notifiesthe claimant in writing within the initial 90-day period, the Plan Administrator mayextend the determination period for up to anadditional 90 days. In addition, where the PlanAdministrator determines that the extension of time is required due to the failure of theclaimant to submit information necessary inorder to determine the claim, the period oftime in which the claim is required to be considered pursuant to this Paragraph 4 shallbe tolled from the date on which notificationof the extension is sent to the claimant untilthe date on which the claimant responds to the request for additional information. Anynotice to a claimant extending the period forconsidering a claim shall indicate the circum-stances requiring the extension and the date by which the Plan Administrator expects torender a determination with respect to the claim. The Plan Administrator shall not process or adjudicate any claim relating specifically tohis or her own benefits under the Plan.

5. Determination of Claim. The Plan Administrator shall inform the claimant inwriting of the decision regarding the claim by registered or certified mail posted withinthe time period described in Paragraph 4. The decision shall be based on governing Plan documents. If there is an adverse determination with respect to all or part of the claim, the written notice shall include:

ª the specific reason or reasons for the denial,

ª reference to the specific Plan provisions on which the denial is based,

ª a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary, and

ª reference to and a copy of these Procedures, so as to provide the claimant with a description of the Plan’s review procedures and the time limits applicable to such procedures, a description of the claimant’s rights regarding documentation as described in Paragraph 9, and a statement of the claimant’s rights under Section 502(a) of ERISA to bring a civil action with respect to an adverse determination upon review of an Appeal filed under Paragraph 6.

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For purposes of these Procedures, an adversedetermination shall mean determination of a claim resulting in a denial, reduction, or termination of a benefit under the Plan, or thefailure to provide or make payment (in whole or in part) of a benefit or any form of benefitunder the Plan. Adverse determinations shallinclude denials, reductions, etc. based on theclaimant’s lack of eligibility to participate in the Plan. All decisions made by the PlanAdministrator under these Procedures shall be summarized in a report to be maintained in the files of the Plan Administrator. Thereport shall include reference to the applicablegoverning Plan provision(s) and, where applicable, reference to prior determinations of claims involving similarly situated claimants.

6. Appeal of Claim Denials – Appeals Committee. A claimant who has received an adverse determination of all or part of aclaim shall have 60 days from the date of such receipt to contest the denial by filing anAppeal. An appeal must be in writing anddelivered to the Plan Administrator at theaddress listed on page 26. An appeal will beconsidered timely only if actually received by the Plan Administrator within the 60-dayperiod or, if sent by mail, postmarked withinthe 60-day period. All timely appeals shallreceive a full and fair review by an AppealsCommittee consisting of the Benefits ProjectsManager, the Benefits Service Manager, andthe SLAC Benefits Manager. The AppealsCommittee shall meet at such times and placesdetermined appropriate, shall keep a record ofsuch meetings and shall periodically report itsdeliberations to the Plan Administrator. Suchreports shall include the basis upon which theAppeal was determined and, where applicable,reference to prior determinations of claimsinvolving similarly situated claimants. The vote of at least two of the three members shall decide any question brought before theAppeals Committee.

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7. Consideration of Appeals. The Appeals Committee shall make an independent decision as to the claim based on a full and fairreview of the record. The Appeals Committeeshall take into account in its deliberations allcomments, documents, records and otherinformation submitted by the claimant,whether submitted in connection with theAppeal or in connection with the originalclaim, and may, but need not, hold a hearingin connection with its consideration of theAppeal. The Appeals Committee shall consideran Appeal within a reasonable period of time,but not later than 60 days after receipt of the Appeal, unless the Appeals Committeedetermines that special circumstances (such as the need to hold a hearing) require anextension of time. If the Appeals Committeedetermines that an extension of time isrequired, it will cause written notice of theextension, including a description of the circumstances requiring an extension and thedate by which the Appeals Committee expectsto render the determination on review, to befurnished to the claimant before the end of the initial 60-day period. In no event shall anextension exceed a period of 60 days from theend of the initial period; provided, that in thecase of any extension of time required by thefailure of the claimant to submit informationnecessary for the Appeals Committee to consider the appeal, the period of time inwhich the appeal is required to be consideredunder this Paragraph 7 shall be tolled from the date on which notification of the extension is sent to the claimant until the date on which the claimant responds to theAppeals Committee’s request for additionalinformation.

8. Resolution of Appeal. Notice of the Appeals Committee’s determination with respect to anappeal shall be communicated to the claimantin writing by registered or certified mail posted within the time period described inParagraph 7. If the determination is adverse,such notice shall include:

ª the specific reason or reasons for the adverse determination,

ª reference to the specific plan provisions on which the adverse determination was based, and

ª reference to and a copy of these Procedures, so as to provide the claimant with a description of the claimant’s rights regarding documentation as described in Paragraph 9, and a statement of the claimant’s rights under Section 502(a) of ERISA to bring a civil action with respect to the adverse determination.

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9.Certain Information. In connection with the determination of a claim or Appeal, a claimantmay submit written comments, documents,records and other information relating to theclaim and may request (in writing) copies ofany documents, records and other informationrelevant to the claim. An item shall be deemedrelevant to a claim if it:

ª was relied on in determining the claim,

ª was submitted, considered or generated in the course of making such determination (whether or not actually relied on), or

ª demonstrates that such determination was made in accordance with governing Plan documents (including, for this purpose, these Procedures) and that, where appropriate, Plan provisions have been applied consistently with similarly situated claimants.

The Plan Administrator shall furnish free of charge copies of all relevant documents,records and other information so requested;provided, that nothing in these Proceduresshall obligate Stanford University, the PlanAdministrator, or any person or committee todisclose any document, record or informationthat is subject to a privilege (including, with-out limitation, the attorney-client privilege) or the disclosure of which would, in the PlanAdministrator’s judgment, violate any law orregulation.

10.Rights of a Claimant Where Appeal is Denied. Where a claimant’s appeal is denied,the claimant may be entitled to bring suitunder Section 502(a) of ERISA. The claimant’sactual entitlement, if any, to bring suit and the scope of and other rules pertaining to anysuch suit shall be governed by, and subject tothe limitations of, applicable law, includingERISA. By extending to an employee or former employee the right to file a claim underthese Procedures, neither Stanford Universitynor any person or committee appointed asPlan Administrator acknowledges or concedesthat such individual is a participant in the Planwithin the meaning of the Plan or ERISA, andreserves the right to assert that an individual isnot a participant in any action brought underSection 502(a).

11. Special Rules Regarding Disability. Certainbenefits under the Plan are contingent uponan individual’s incurring a disability. Where a claim requires a determination of whether an individual would be entitled to disabilitybenefit payments under a separate long-termdisability plan maintained by StanfordUniversity, and such individual is not actuallya participant in such disability plan, the addi-tional rules set forth in Schedule 1 to theseProcedures shall apply to the claim. However,where disabled status is based upon actualentitlement to benefits under a separate planin which the individual participates or is other-wise covered, the determination of such statusfor purposes of the Plan shall be made undersuch separate disability plan, and any claims ordisputes as to disabled status under such planor program shall be resolved in accordancewith the procedures established for that purpose under the separate plan or program.

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12.Authorized Representation. A Claimant may authorize an individual to represent him/herwith respect to a claim or appeal made underthese Procedures. Any such authorization shallbe in writing, shall clearly identify the nameand address of the individual, and shall bedelivered to the Plan Administrator at theaddress listed in Paragraph 3. On receipt of aletter of authorization, all parties authorized to act under these Procedures shall be entitledto rely on such authorization, until similarlyrevoked by the claimant. While an authoriza-tion is in effect, the claimant as used in theseProcedures shall include his/her authorizedrepresentative for purposes of all notices andcommunications to be provided under theseProcedures.

13.Form of Communications. Unless otherwise specified above, any claim, appeal, notice,determination, request, or other communica-tion made under these Procedures shall be inwriting, with original signed copy delivered byhand or first class mail (including registered orcertified mail). A copy or advance delivery ofany such claim, appeal, notice, determination,request, or other communication may be madeby electronic mail or facsimile. Any such elec-tronic or facsimile communication, however,shall be for the convenience of the parties onlyand not in substitution of a writing required tobe mailed or delivered under these Procedures,and receipt or delivery of any such Claim,Appeal, notice, determination, request, orother written communication shall not be considered to have been made until the actualposting or receipt of original signed copy, asthe case may be.

14.Reliance on Outside Counsel, Consultants, etc. The Plan Administrator and the AppealsCommittee may rely on or take into accountadvice or information provided by such legal,accounting, actuarial, consulting or other professionals as may be selected in determininga Claim or Appeal, including those individualsand firms that may render advice to StanfordUniversity or the Plan from time to time.

15. Amendment of Procedures – Interpretation.These Procedures may be modified at any timeand from time to time by action of the PlanAdministrator and shall be deemed automati-cally modified to incorporate any requirementattributable to a change in the applicableDepartment of Labor regulations after January1, 2002. The Administrator shall have complete discretion to interpret and applythese Procedures, including, for purposes ofapplying these Procedures, such regulations.Further, nothing in these Procedures shall beconstrued to limit the discretion of the PlanAdministrator or its designee to interpret thePlan or, subject to the right of appeal of anadverse determination, the finality of the decision of the Plan Administrator or itsdesignee, all as set forth in the Plan.

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Schedule 1Special Rules Regarding Certain Disability Claims

Pursuant to Paragraph 11 in the Claims Procedures, the following special rules supplement the Claims Procedures and apply only in the caseof a claim (Disability Claim) which requires adetermination of whether an individual would becertified as disabled under a separate long-termdisability plan maintained by Stanford University,and such individual is not actually a participantin such disability plan.

Time to Process Claims. The PlanAdministrator will process and inform theclaimant of the determination of the DisabilityClaims in accordance with Paragraphs 4 and 5 of the Claims Procedures, except that a period of45 days shall apply instead of the initial 90 daysin which to process and determine the DisabilityClaim. This period may be extended initially bythe Plan Administrator for 30 days if the claimantis notified before the end of the original 45-dayperiod that the extension is necessary due to matters beyond the control of the PlanAdministrator. This 30-day extension period maybe extended by the Plan Administrator for anadditional 30 days if the claimant is notifiedbefore the end of the first 30-day extension thatthe extension is necessary due to matters beyondthe control of the Plan Administrator. Any noticeof an extension will explain the reason for theextension, when the Plan Administrator expectsto rule on the Disability Claim, the standards on which entitlement to a benefit is based, theunresolved issues that prevent a decision on theDisability Claim, and any additional informationneeded to resolve those issues. If the claimant isinformed that he/she needs to provide additionalinformation necessary to resolve Disability Claimissues, the claimant will have 45 days from thedate he/she receives the extension notice to provide the additional information.

Determination of Claim and Notice ofDetermination. The Plan Administrator willdetermine which long-term disability plan maintained by Stanford University is the applicable plan for the claimant, and whether aclaimant would be certified as disabled undersuch long-term disability plan by applying thestandards and definitions used in the long-termdisability plan. The Plan Administrator mayrequire and rely on the written report or certification from a licensed physician selected orapproved by the Plan Administrator. In additionto the requirements of Paragraph 5 in the ClaimsProcedures, any written notice of an adversedetermination of a Disability Claim will include a copy of any internal rules, guidelines, protocols,or other similar criteria that were relied on in the decision-making, or a statement that thedetermination was based on the applicable itemsmentioned above, and that copies of the applicable items will be provided, free of charge,on the claimant’s request. In addition, if theadverse determination is based on a medicalnecessity, experimental treatment or similar exclusion or limit, the notice will contain anexplanation of the scientific or clinical judgmentused in the determination, applying the terms of the relevant long-term disability plan to theclaimant’s medical circumstances, or a statementthat such explanation will be provided, free ofcharge, upon the claimant’s request.

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Appeal of a Claim Denial. NotwithstandingParagraph 6 of the Claims Procedures, a claimantwho has received an adverse determination of allor part of a Disability Claim shall have 180 daysfrom the date of receipt to appeal the denial(Disability Appeal).

Notwithstanding Paragraph 7 of the ClaimsProcedures, review of a Disability Appeal will be conducted by the Appeals Committeewithout deference to the initial adverse benefitdetermination by the Plan Administrator; and no member of the Appeals Committee will participate in the review of a Disability Claimif such member made the adverse benefit deter-mination that is the subject of the DisabilityAppeal or is the subordinate of such individual.

If the adverse determination was based in wholeor in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental,investigational, or not medically necessary orappropriate, the Appeals Committee shall consult with a health care professional who hasappropriate training and experience in the field of medicine involved in the medical judgmentand who was not consulted in connection withthe initial claim denial (and who is not the subordinate of such an individual). Any medicalor vocational experts whose advice was obtainedwill be identified, without regard to whether theadvice was relied upon in making the benefitdetermination.

Notwithstanding Paragraphs 7 and 8 of theClaims Procedures, the Appeals Committee shallconsider and communicate its determination withrespect to a Disability Appeal within a reasonabletime, but not later than 45 days after receipt of the Disability Appeal, unless special circumstances require an extension for processing, in which case a decision will be made within a 45 dayextension period.

Resolution of Appeal. In addition to the information required by Paragraph 8 of theClaims Procedures, any written notice by theAppeals Committee of an adverse determinationon a Disability Appeal will include a descriptionof any specific internal rules, guidelines, protocols, or other similar criteria that were relied on in making the decision, or a statementthat the decision was based on the applicableitems mentioned above, and copies of the applicable items will be provided, free of charge,upon the claimant’s request. In addition, if theadverse determination of the Disability Appeal is based on a medical necessity, experimentaltreatment or similar exclusion or limit, the notice will contain an explanation of the scientificor clinical judgment used in the determination,applying the terms of the relevant long-term disability plan to the claimant’s medical circumstances, or a statement that such explanation will be provided, free of charge, at the claimant’s request.

Revised 1/2005

Printed 4/2005 17M

Reprinted 1/2009 2.5M