-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BgOZHrJxfqAV6rWA3QIO+0lcoxCP6YlAwoeWL6ihDIB352y41UuAwSZ/OT1Lqr+J zGJ5nedcdU/s2DT2x7ZHog== 0000893220-96-001081.txt : 19960629 0000893220-96-001081.hdr.sgml : 19960629 ACCESSION NUMBER: 0000893220-96-001081 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960627 SROS: NYSE SROS: PHLX SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIGNA CORP CENTRAL INDEX KEY: 0000701221 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 061059331 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08323 FILM NUMBER: 96586736 BUSINESS ADDRESS: STREET 1: ONE LIBERTY PL 1650 MARKET ST STREET 2: P O BOX 7716 CITY: PHILADELPHIA STATE: PA ZIP: 19192-1550 BUSINESS PHONE: 2157611000 11-K 1 FORM 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) /X/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1995 OR / / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from _____ to _____ Commission File Number 1-8323 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: CIGNA Corporation Savings and Investment Plus Plan Two Liberty Place, 17th Floor 1601 Chestnut Street P.O. Box 7716 Philadelphia, PA 19192-2172 B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: CIGNA Corporation One Liberty Place 1650 Market Street Philadelphia, PA 19192-1550 2 Required Information Financial statements and schedules for CIGNA Corporation's Savings and Investment Plus Plan, prepared in accordance with the financial reporting requirements of ERISA, appear on pages 11-K-3 through 11-K-19 of this Annual Report on Form 11-K. 11-K-2 3 SAVINGS AND INVESTMENT PLUS PLAN Financial Statements and Supplemental Schedules Years Ended December 31, 1995 and 1994 11-K-3 4 SAVINGS AND INVESTMENT PLUS PLAN TABLE OF CONTENTS
Page Number ------ Report of Independent Accountants 1 Financial Statements: Statements of Net Assets Available for Benefits 2 Statements of Changes in Net Assets Available for Benefits 3 Notes to Financial Statements 4-10 Supplemental Schedules: Schedule I - Assets Held for Investment 12 Schedule II - Party-In-Interest Transactions 13 Schedule III - Reportable Transactions 14 Schedule IV - Loans in Default 15
11-K-4 5 REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors of CIGNA Corporation and the Participants and Administrator of the Savings and Investment Plus Plan In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Savings and Investment Plus Plan at December 31, 1995 and 1994, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I through IV is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by the Employee Retirement Income Security Act of 1974 (ERISA). Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Price Waterhouse LLP Philadelphia, Pennsylvania May 31, 1996 11-K-5 6 SAVINGS AND INVESTMENT PLUS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995 1994 ---- ---- ASSETS (IN THOUSANDS) Fixed Income Fund $ 902,168 $ 818,488 Fidelity Advisor Growth Opportunities Fund 188,393 108,529 CIGNA Stock Fund 81,392 51,128 Stock Market Index Fund 49,315 24,807 International Equity Fund 19,147 12,631 INVESCO Total Return Fund 16,140 5,658 INVESCO Industrial Income Fund 14,173 5,928 Growth & Income Fund - 53,126 Participant Loans 41,450 34,235 ------------------ ------------------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,312,178 $ 1,114,530 ================== ===================
11-K-6 The Notes to Financial Statements are an integral part of these statements. - 2 - 7 SAVINGS AND INVESTMENT PLUS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995 1994 ---- ---- INVESTMENT INCOME (IN THOUSANDS) Interest and dividends $ 65,316 $ 52,638 Net increase in fair value of CIGNA stock 31,253 495 Net investment gain from separate accounts 57,431 798 -------------------- -------------------- Total investment income 154,000 53,931 -------------------- -------------------- CONTRIBUTIONS Employees' contributions 74,836 70,791 Employers' contributions 30,428 29,088 Rollover contributions 6,497 4,638 -------------------- -------------------- Total contributions 111,761 104,517 -------------------- -------------------- WITHDRAWALS AND DISTRIBUTIONS (68,113) (55,309) -------------------- -------------------- NET INCREASE 197,648 103,139 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 1,114,530 1,011,391 -------------------- -------------------- End of year $ 1,312,178 $ 1,114,530 ==================== ====================
11-K-7 The Notes to Financial Statements are an integral part of these statements. - 3 - 8 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1 - DESCRIPTION OF PLAN Generally, all domestic employees of CIGNA Corporation (CIGNA) and its participating subsidiaries who have completed at least one year of service are eligible to participate in the Savings and Investment Plus Plan (SIP or the Plan). The following description of the Plan provides general information only. A more complete explanation of the features and benefits available under the Plan is contained in the SIP Summary Plan Description and Prospectus. The Plan permits tax-deferred contributions to a maximum of 16% of a participant's eligible earnings. Eligible earnings were limited to $150,000 in both 1995 and 1994. Tax-deferred contributions are accomplished by means of an employee's election, pursuant to Section 401(k) of the Internal Revenue Code, to have an amount withheld by the employer from the employee's compensation, and for the employer to remit to the employee's plan account an amount equal to such withholding. Tax-deferred contributions are also referred to herein as "employee contributions." Under the Internal Revenue Code, tax-deferred contributions were limited to $9,240 in both 1995 and 1994. To comply with anti-discrimination provisions, tax-deferred contributions for highly compensated employees were effectively limited to 6.0% and 5.6% of eligible earnings in 1995 and 1994, respectively. CIGNA companies made matching contributions in an amount equal to 50% of the first 6% of eligible earnings contributed by participants. These matching contributions are referred to herein as "employer contributions." Employee contributions, including related investment earnings, are fully vested at all times. Employer contributions and related investment earnings vest 20% for each year of vesting service. Participants earn a year of Vesting Service if they have 1,000 hours of service during the calendar year period. Early vesting rules may apply upon joining the Plan, if the participant was previously employed by a CIGNA company or had an account in certain plans that have since merged into SIP. These rules are described in detail in the SIP Summary Plan Description and Prospectus. Employer contributions and related investment earnings are fully vested upon an employee's attainment of age 65, death or total and permanent disability. Full vesting would also occur if a participating CIGNA company is sold and does not maintain a successor plan, if CIGNA completely discontinues matching contributions or if the Plan is terminated. Upon termination of a participant's employment, that portion of employer contributions and related investment results which are not vested are forfeited. Forfeited amounts are used to reduce future employer contributions. The Plan may accept rollover contributions. A rollover contribution to SIP represents a distribution a participant receives from another employer-sponsored, tax qualified, pension or profit sharing plan. Distributions from other plans are subject to certain conditions to be eligible for rollover into SIP. The Plan permits participants to borrow a portion of their account, subject to certain limitations, at an annual rate of interest with a specified repayment period. Loan interest rates remain fixed during the term of the loan. The loan is secured by the participant's SIP account balance. Generally, loan repayments are made by payroll deduction. Both the interest and principal portions of every repayment are allocated to the participant account according to the investment election in effect at the time of the repayment. The interest portion of every repayment is added to the participant's SIP account balance as earnings. If a default occurs, the amount of the outstanding loan balance is treated as a distribution to the participant. The defaulting participant is subject to immediate taxation on the taxable portion of the defaulted amount, including a possible 10% penalty tax. Participants may withdraw funds subject to the requirements of the Plan, and such withdrawals may be subject to immediate taxation and a possible 10% penalty tax. 11-K-8 - 4 - 9 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS On termination of employment due to death, disability, retirement or other reasons, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in their account, monthly installments for up to 30 years, an annuity, or a combination of these forms. To the extent amounts are invested in the CIGNA Stock Fund, a participant may elect to receive such amounts in CIGNA common stock. Effective September 1, 1994, the Plan added three new investment fund options and began to phase out one existing investment fund option. Plan participants may elect to invest in any combination of seven funds, and are permitted to transfer assets, subject to certain restrictions, among the funds. Fixed Income Fund - This fund consists of a group fixed annuity contract issued by Connecticut General Life Insurance Company (CGLIC), a CIGNA subsidiary. At December 31, 1994 the fund also included a group fixed annuity contract issued by The Equitable Life Assurance Society of the United States (Equitable). The contract with Equitable matured in September 1995, and the balance in the contract was transferred to the contract with CGLIC. The fund guarantees the principal and accumulated interest of all monies deposited. An annual rate of interest is declared in advance and subject to change. The fund's effective annual yield during 1995 and 1994 was 6.9% and 6.3%, respectively. Fidelity Advisor Growth Opportunities Fund - Contributions to this investment option are invested in Separate Account 55A (SA-55A) of CGLIC. All the assets of this pooled separate account are invested in the Fidelity Advisor Growth Opportunities Fund, a mutual fund. The fund's objective is long-term capital growth. The Fidelity portfolio consists primarily of common stocks or securities convertible into common stocks. CIGNA Stock Fund - The CIGNA Stock Fund is invested in shares of CIGNA common stock. Such shares presently are purchased on the open market but may be acquired directly from CIGNA. From time to time, a portion of CIGNA Stock Fund assets may be invested in short-term investments. Stock Market Index Fund - Contributions to this investment option are invested in Separate Account B (SA-B) of CGLIC, a pooled common stock fund. The fund's objective is to match the performance of the Standard & Poor's 500 Composite Stock Price Index. International Equity Fund - This investment option, which became effective September 1, 1994, invests in Separate Account I (SA-I) of CGLIC, a pooled common stock fund. The fund's objective is to invest primarily in stocks of a diversified group of non-U.S. companies that have the potential to provide superior returns. INVESCO Industrial Income Fund - This investment option, which became effective September 1, 1994, invests in Separate Account 55J (SA-55J) of CGLIC. All assets of this pooled account are invested in the INVESCO Industrial Income Fund, a mutual fund. The fund's objective is to invest in a broad range of securities (primarily common stocks or securities convertible into common stocks) which are intended to provide a relatively high yield and stable return and, over a period of years, may also provide capital appreciation. Capital growth potential is a secondary goal. INVESCO Total Return Fund - This investment option, which became effective September 1, 1994, invests in Separate Account 55K (SA-55K) of CGLIC. All assets of this pooled account are invested in the INVESCO Total Return Fund, a mutual fund. The fund's objective is to invest in a combination of equity securities (common stocks and, to a lesser extent, securities convertible into common stocks) and fixed income securities (primarily obligations of the U.S. government and government-backed agencies) 11-K-9 - 5 - 10 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS which are intended to provide a high return on investment through both capital appreciation and current income. Growth & Income Fund - Effective September 1, 1994, the Plan began to phase out this fund as an investment option. No contributions or transfers were permitted into this fund after September 30, 1994. In January 1995, the Growth & Income Fund was eliminated from SIP. Any balances in the fund on the date of its elimination from the Plan were transferred into the Fixed Income Fund. Assets in this fund had been invested in Separate Account 9V (SA-9V) of CGLIC, a pooled common stock fund. The investment focus of the Growth & Income Fund was long-term growth of capital and a reasonable level of income. Mellon Bank (East) N.A., Philadelphia, Pennsylvania is the Trustee for the Plan. Contributions are received and allocated to the designated funds by CGLIC. While contributions are pending allocation, they are invested in short-term investments. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements have been prepared in conformity with generally accepted accounting principles. Certain reclassifications have been made to the 1994 financial statements to conform to the 1995 presentation. Recent Accounting Pronouncement In 1994, Statement of Position (SOP) 94-4, "Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans," was issued by the American Institute of Certified Public Accountants. SOP 94-4 requires defined contribution plans to report investment contracts with fully benefit responsive features at contract value and other investment contracts at fair value. SOP 94-4 will be implemented in 1996 and is not expected to have a material effect on the Plan's financial statements. Investments The group fixed annuity contracts with CGLIC and the Equitable are stated at contract value, which approximates fair value. Contract value represents the aggregate amount on deposit, including accumulated interest. CIGNA common stock is carried at market value, which is based upon quotations obtained from national securities exchanges. Participation units in the separate accounts are valued based on the fund's net asset value, which is based on the fair value of the underlying assets of the fund. Short-term investments are carried at cost, which approximates fair value. Withdrawals and Distributions Withdrawals and distributions are recorded when paid. 11-K-10 - 6 - 11 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS Investment Income Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Realized investment gains and losses are based on the average cost of the investments sold. Investment transactions are recorded on the trade date. NOTE 3 - PARTICIPATION IN THE PLAN Employees' contributions and employers' contributions (net of forfeitures) for the years ended December 31, 1995 and 1994 were as follows:
Employees' Employers' Contributions Contributions (In thousands) - ------------------------------------------------------------- ------------- ------------- 1995 ---- CIGNA Corporation $ 4,121 $ 1,726 CIGNA Holdings, Inc. 32 13 CIGNA Dental Health, Inc. 438 181 CIGNA Healthplan, Inc. subsidiaries 14,537 5,962 CIGNA Information Services, Inc. 205 75 CIGNA Investments, Inc. 1,937 838 Connecticut General Life Insurance Company 22,906 9,256 ESIS, Inc. 333 131 INA Life Insurance Company of New York 200 78 Insurance Company of North America 25,074 10,141 Life Insurance Company of North America 2,868 1,203 MCC Behavioral Care, Inc. 1,837 695 Recovery Services International, Inc. 348 129 ------- ------- $74,836 $30,428 ======= ======= 1994 ---- CIGNA Corporation $ 3,420 $ 1,459 CIGNA Holdings, Inc. 25 11 CIGNA Dental Health, Inc. 358 144 CIGNA Healthplan, Inc. subsidiaries 13,563 5,615 CIGNA Information Services, Inc. 326 120 CIGNA Investments, Inc. 1,611 706 Connecticut General Life Insurance Company 21,786 9,038 ESIS, Inc. 85 36 INA Life Insurance Company of New York 128 54 Insurance Company of North America 25,308 10,251 Life Insurance Company of North America 2,183 935 MCC Behavioral Care, Inc. 1,648 597 Recovery Services International, Inc. 350 122 ------- ------- $70,791 $29,088 ======= =======
11-K-11 - 7 - 12 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 4 - INVESTMENTS An analysis of the changes in net assets available for benefits by investment fund for the year ended December 31, 1995 is presented below.
FIDELITY ADVISOR GROWTH FIXED OPPORTUNITIES CIGNA STOCK MARKET INTERNATIONAL YEAR ENDED DECEMBER 31, 1995 INCOME FUND FUND STOCK FUND INDEX FUND EQUITY FUND - ---------------------------- ----------- ---- ---------- ---------- ----------- (In thousands) INVESTMENT INCOME Interest and dividends $ 60,541 $ - $ 2,374 $ - $ - Net increase in fair value of CIGNA stock - - 31,253 - - Net investment gain from separate accounts - 40,224 - 10,758 990 --------- --------- --------- --------- --------- Total investment income 60,541 40,224 33,627 10,758 990 --------- --------- --------- --------- --------- CONTRIBUTIONS Employees' contributions 45,947 15,342 5,358 3,037 2,436 Employers' contributions 18,879 6,155 2,152 1,206 971 Rollover contributions 3,178 1,682 439 484 233 --------- --------- --------- --------- --------- Total contributions 68,004 23,179 7,949 4,727 3,640 --------- --------- --------- --------- --------- LOAN PRINCIPAL REPAYMENTS 10,686 2,456 963 393 378 LOAN INTEREST RECEIVED - ALLOCATED 1,646 401 159 67 63 LOANS ISSUED (19,855) (2,691) (1,104) (401) (312) WITHDRAWALS AND DISTRIBUTIONS (54,661) (4,780) (3,895) (1,550) (500) INTERFUND TRANSFERS 17,319 21,075 (7,435) 10,514 2,257 --------- --------- --------- --------- --------- NET INCREASE (DECREASE) 83,680 79,864 30,264 24,508 6,516 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 818,488 108,529 51,128 24,807 12,631 --------- --------- --------- --------- --------- End of year $ 902,168 $ 188,393 $ 81,392 $ 49,315 $ 19,147 ========= ========= ========= ========= =========
INVESCO INVESCO TOTAL INDUSTRIAL GROWTH & PARTICIPANT YEAR ENDED DECEMBER 31, 1995 RETURN FUND INCOME FUND INCOME FUND LOANS TOTAL - ---------------------------- ----------- ----------- ----------- ----- ----- (In thousands) INVESTMENT INCOME Interest and dividends $ - $ - $ - $ 2,401 $ 65,316 Net increase in fair value of CIGNA stock - - - - 31,253 Net investment gain from separate accounts 2,469 2,274 716 - 57,431 --------- -------- -------- --------- ---------- Total investment income 2,469 2,274 716 2,401 154,000 --------- -------- -------- --------- ---------- CONTRIBUTIONS Employees' contributions 1,263 1,453 - - 74,836 Employers' contributions 496 569 - - 30,428 Rollover contributions 248 233 - - 6,497 --------- -------- -------- --------- ---------- Total contributions 2,007 2,255 - - 111,761 --------- -------- -------- --------- ---------- LOAN PRINCIPAL REPAYMENTS 208 203 - (15,287) - LOAN INTEREST RECEIVED - ALLOCATED 34 31 - (2,401) - LOANS ISSUED (139) (135) (4) 24,641 - WITHDRAWALS AND DISTRIBUTIONS (226) (330) (32) (2,139) (68,113) INTERFUND TRANSFERS 6,129 3,947 (53,806) - - --------- -------- -------- --------- ---------- NET INCREASE (DECREASE) 10,482 8,245 (53,126) 7,215 197,648 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 5,658 5,928 53,126 34,235 1,114,530 --------- -------- -------- --------- ---------- End of year $ 16,140 $ 14,173 $ - $ 41,450 $1,312,178 ========= ======== ======== ========= ==========
-8- 11-K-12 13 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS An analysis of the changes in net assets available for benefits by investment fund for the year ended December 31, 1994 is presented below.
FIDELITY ADVISOR GROWTH FIXED OPPORTUNITIES CIGNA STOCK MARKET INTERNATIONAL YEAR ENDED DECEMBER 31, 1994 INCOME FUND FUND STOCK FUND INDEX FUND EQUITY FUND ---------------------------- ----------- ---- ---------- ---------- ----------- (In thousands) INVESTMENT INCOME Interest and dividends $ 48,790 $ - $ 2,216 $ - $ - Net increase in fair value of CIGNA stock - - 495 - - Net investment gain (loss) from separate accounts - 1,144 - 222 (259) --------- --------- -------- -------- -------- Total investment income 48,790 1,144 2,711 222 (259) --------- --------- -------- -------- -------- CONTRIBUTIONS Employees' contributions 46,153 10,946 4,117 1,834 474 Employers' contributions 19,056 4,372 1,680 743 179 Rollover contributions 2,070 1,371 302 400 36 --------- --------- -------- -------- -------- Total contributions 67,279 16,689 6,099 2,977 689 --------- --------- -------- -------- -------- LOAN PRINCIPAL REPAYMENTS 7,208 1,410 538 151 78 LOAN INTEREST RECEIVED - ALLOCATED 1,136 226 91 26 13 LOANS ISSUED (19,098) (1,923) (933) (168) (49) WITHDRAWALS AND DISTRIBUTIONS (42,193) (2,965) (2,837) (779) (58) INTERFUND TRANSFERS (17,381) 38,373 1,947 3,844 12,217 --------- --------- -------- -------- -------- NET INCREASE (DECREASE) 45,741 52,954 7,616 6,273 12,631 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 772,747 55,575 43,512 18,534 - --------- --------- -------- -------- -------- End of year $ 818,488 $ 108,529 $ 51,128 $ 24,807 $ 12,631 ========= ========= ======== ======== ========
INVESCO INVESCO TOTAL INDUSTRIAL GROWTH & PARTICIPANT YEAR ENDED DECEMBER 31, 1994 RETURN FUND INCOME FUND INCOME FUND LOANS TOTAL ---------------------------- ----------- ----------- ----------- ----- ----- (In thousands) INVESTMENT INCOME Interest and dividends $ - $ - $ - $ 1,632 $ 52,638 Net increase in fair value of CIGNA stock - - - - 495 Net investment gain (loss) from separate accounts (7) (130) (172) - 798 ------- ------- -------- ---------- ----------- Total investment income (7) (130) (172) 1,632 53,931 ------- ------- -------- ---------- ----------- CONTRIBUTIONS Employees' contributions 145 208 6,914 - 70,791 Employers' contributions 56 78 2,924 - 29,088 Rollover contributions 6 20 433 - 4,638 ------- ------- -------- ---------- ----------- Total contributions 207 306 10,271 - 104,517 ------- ------- -------- ---------- ----------- LOAN PRINCIPAL REPAYMENTS 27 33 751 (10,196) - LOAN INTEREST RECEIVED - ALLOCATED 3 6 131 (1,632) - LOANS ISSUED (10) (11) (1,438) 23,630 - WITHDRAWALS AND DISTRIBUTIONS (1) (1) (5,539) (936) (55,309) INTERFUND TRANSFERS 5,439 5,725 (50,164) - - ------- ------- -------- ---------- ----------- NET INCREASE (DECREASE) 5,658 5,928 (46,160) 12,498 103,139 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year - - 99,286 21,737 1,011,391 ------- ------- -------- ---------- ----------- End of year $ 5,658 $ 5,928 $ 53,126 $ 34,235 $ 1,114,530 ======= ======= ======== ========== ===========
-9- 11-K-13 14 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 5 - INCOME TAX STATUS Internal Revenue Service (IRS) determination letters have been received for the Plan and all Plan amendments through December 31, 1994, indicating the Plan's qualified status under Internal Revenue Code (IRC) Sections 401(a), 401(k) and 501(a). There have been no Plan amendments since that time and, therefore, management believes the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. Accordingly, no provision has been made for federal or state income taxes in the accompanying financial statements. Under existing federal income tax law the operation of the Plan has the following general tax consequences: (a) Each employer is entitled to deduct its contributions under the Plan in computing its federal income tax liability. (b) Participating employees are not subject to federal income tax on amounts contributed by them as well as by employers for their benefit, nor with respect to any investment results realized by the Plan, until such time as amounts are distributed to them. NOTE 6 - PLAN EXPENSES The investment results of all funds except the CIGNA Stock Fund are net of management fees, investment expenses, risk charges and administrative costs charged by CGLIC. Brokers commissions resulting from buying or selling stock in the CIGNA Stock Fund are paid from the participants' accounts and have been netted against the Stock Fund's investment income in these financial statements. Other costs associated with the operation of the Plan, including trustee and legal fees, are paid by CIGNA. NOTE 7 - TERMINATION PRIORITIES CIGNA intends to continue the Plan indefinitely, but reserves the right to terminate the Plan, in whole or in part, or to discontinue contributions at any time. If the Plan is terminated or contributions are discontinued, affected participants will become fully vested. Upon Plan termination, net assets of the Plan will be distributed in the manner CIGNA elects and in accordance with ERISA and its related regulations. NOTE 8 - RELATED PARTY TRANSACTIONS There are numerous transactions between the Plan and CIGNA and its affiliates which, in the opinion of Plan management, are exempt from detailed reporting under Title I of ERISA. Investments in CGLIC's separate accounts represent investments for which CGLIC has fiduciary responsibility. The Fixed Income Fund is a contract participating in the general account assets of CGLIC. CGLIC is the Plan's recordkeeper. 11-K-14 - 10 - 15 SUPPLEMENTAL SCHEDULES 11-K-15 16 SCHEDULE I SAVINGS AND INVESTMENT PLUS PLAN ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
Shares or Description Units Cost Market Value ----------- ----- ---- ------------ (In thousands, except shares or units) Fixed Income Fund $ 902,168 $ 902,168 Fidelity Advisor Growth Opportunities Fund 4,541,837 149,972 188,393 CIGNA Stock Fund: CIGNA Corporation common stock 779,131 51,952 80,445 Short-term investments 357 357 Stock Market Index Fund 1,553,459 37,895 49,315 International Equity Fund 306,118 18,303 19,147 INVESCO Total Return Fund 662,440 13,824 16,140 INVESCO Industrial Income Fund 951,577 12,180 14,173 Participant Loans 41,450 ----------- Assets held for investment 1,311,588 Investment income receivable (CIGNA Stock Fund) 590 ----------- Net assets available for benefits $ 1,312,178 ===========
11-K-16 - 12 - 17 SCHEDULE II SAVINGS AND INVESTMENT PLUS PLAN PARTY-IN-INTEREST TRANSACTIONS YEAR ENDED DECEMBER 31, 1995 A schedule of party-in-interest transactions has not been prepared because there were no party-in-interest transactions which are prohibited by ERISA and for which there is no statutory or administrative exemption. 11-K-17 - 13 - 18 SCHEDULE III SAVINGS AND INVESTMENT PLUS PLAN REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1995 (Transactions with the same person or of the same issue aggregating 5% or more of the current value of Plan assets.)
-----------------------Sales---------------------- Party Involved Description of Asset Purchases Proceeds Cost Gain - ---------------------------- -------------------------- ---------------- --------------- --------------- ------------- (In thousands) Connecticut General Life Fixed Income Fund Insurance Company $ 165,954 $ 142,815 $ 142,815 - Connecticut General Life Fidelity Advisor Growth Insurance Company Opportunities Fund (SA-55A) 64,508 24,868 21,428 $ 3,440
11-K-18 - 14 - 19 SCHEDULE IV SAVINGS AND INVESTMENT PLUS PLAN LOANS IN DEFAULT DECEMBER 31, 1995
Original Unpaid Amounts of Balances at Amounts Obligor Loans Amounts Received During 1995 End of Year Overdue ------- ----- ---------------------------- ----------- ------- (In thousands) Principal Interest --------- -------- Various $ 362 $ 19 $ 3 $ 207 $ 207
11-K-19 - 15 - 20 Exhibits Exhibits are listed in the Index to Exhibits appearing on page E-1. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. SAVINGS AND INVESTMENT PLUS PLAN Date: June 27, 1996 By: /s/STEWART M. BELTZ ------------------- Stewart M. Beltz Plan Administrator 11-K-20 21 Index to Exhibits
Method of Number Description Filing - ------ ----------- ------ 23.1 Consent of Filed Independent herewith Accountants
-E-1- EX-23.1 2 CONSENT OF INDEPENDENT ACCOUNTANTS 1 Exhibit 23.1 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-51791) of CIGNA Corporation of our report dated May 31, 1996, appearing on page 11-K-5 of this Form 11-K. /s/ PRICE WATERHOUSE LLP Philadelphia, Pennsylvania June 27, 1996 -E-2- -----END PRIVACY-ENHANCED MESSAGE-----