-----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, VJZ4OdoHYG1ZmGSB9kNqUoygLdDhkf/KLkvQDfLEgWwn6Kgg+jCBXDDemt1S0otQ sHxj4TouURqBxolpahkYQA== 0000893220-97-001210.txt : 19970701 0000893220-97-001210.hdr.sgml : 19970701 ACCESSION NUMBER: 0000893220-97-001210 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970630 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: 97632449 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: 2157616211 11-K 1 FORM 11-K CIGNA CORPORATION 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, 1996 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-18 of this Annual Report on Form 11-K. 11-K-2 3 SAVINGS AND INVESTMENT PLUS PLAN FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES DECEMBER 31, 1996 AND 1995 11-K-3 4 SAVINGS AND INVESTMENT PLUS PLAN TABLE OF CONTENTS Page 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 Supplemental Schedules Schedule of Assets Held for Investment Purposes 12 Schedule of Reportable Transactions 13 Schedule of Loans in Default 14 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 (the Plan) at December 31, 1996 and 1995, 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 supplemental schedules are not required as part of the basic financial statements but represent additional information required by the Employee Retirement Income Security Act of 1974. 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 June 18, 1997 11-K-5 6 SAVINGS AND INVESTMENT PLUS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
As of December 31, 1996 1995 ---------- ---------- (In thousands) ASSETS Investments, at fair value Fixed Income Fund $ 891,281 $ 902,168 Fidelity Advisor Growth Opportunities Fund 227,302 188,393 CIGNA Stock Fund 113,215 81,392 Stock Market Index Fund 84,101 49,315 International Equity Fund 30,114 19,147 INVESCO Total Return Fund 22,967 16,140 Founders Growth Fund 13,362 -- Warburg Pincus Advisor Emerging Growth Fund 9,235 -- INVESCO Industrial Income Fund 8,666 14,173 Participant Loans 45,221 41,450 ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $1,445,464 $1,312,178 ========== ==========
The Notes to Financial Statements are an integral part of these statements. - 2 - 11-K-6 7 SAVINGS AND INVESTMENT PLUS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, 1996 1995 ----------- ----------- (In thousands) Investment income Interest and dividends $ 64,426 $ 65,316 Net increase in fair value of CIGNA stock 27,248 31,253 Net investment gain from separate accounts 54,882 57,431 ----------- ----------- Total investment income 146,556 154,000 ----------- ----------- Contributions Employees' contributions 71,741 74,836 Employer's contributions 28,882 30,428 Rollover contributions 4,461 6,497 ----------- ----------- Total contributions 105,084 111,761 ----------- ----------- Benefits Paid (77,382) (68,113) ----------- ----------- Transfers to other plans (40,972) -- ----------- ----------- NET INCREASE 133,286 197,648 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 1,312,178 1,114,530 ----------- ----------- End of year $ 1,445,464 $ 1,312,178 =========== ===========
The Notes to Financial Statements are an integral part of these statements. - 3 - 11-K-7 8 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1 - DESCRIPTION OF THE 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), a defined contribution 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. Contributions 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 1996 and 1995. 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 $9,500 and $9,240 in 1996 and 1995, respectively. To comply with anti-discrimination provisions, tax-deferred contributions for highly compensated employees were limited to 6.0% of eligible earnings in both 1996 and 1995. 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." 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. Vesting 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. 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 discontinues matching contributions or if the Plan is terminated. Upon termination of a participant's employment, that portion of employer contributions and related investment earnings which are not vested are forfeited. Forfeited amounts are used to reduce future employer contributions. Loans The Plan permits participants to borrow a portion of their account, subject to certain limitations, at - 4 - 11-K-8 9 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS an annual rate of interest with a specified repayment period. The minimum amount that can be borrowed is $1,000; the maximum total loan amount is the lesser of $50,000 or 50% of the participant's vested account balance. A participant may have no more than two outstanding SIP loans. Loan terms range from 12 to 60 months, or up to 120 months if the loan is used to buy or build a participant's primary residence. 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. Payment of Benefits 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. 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. Transfers to Other Plans In accordance with agreements related to the disposition of certain operations of CIGNA, the account balances of certain participants were transferred to other plans during 1996. Investments During 1996, the Plan added two new investment options and began to phase out one existing investment option. Plan participants may elect to invest in any combination of eight funds, and are permitted to transfer assets, subject to certain restrictions, among the funds. Fixed Income Fund - Contributions to this investment option are invested in a group fixed annuity contract issued by Connecticut General Life Insurance Company (CGLIC), a CIGNA subsidiary. CGLIC guarantees the principal and accumulated interest of all monies deposited. An annual rate of interest is declared in advance and subject to change. 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 account are invested in the Fidelity Advisor Growth Opportunities Fund, a mutual fund. The fund's objective is long-term capital growth. The fund's portfolio consists primarily of common stocks or securities convertible into common stocks. - 5 - 11-K-9 10 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS CIGNA Stock Fund - Contributions to this investment option are 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 - Contributions to this investment option are invested 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 Total Return Fund - Contributions to this investment option are invested in Separate Account 55K (SA-55K) of CGLIC. All the assets of this pooled account are invested in the INVESCO Total Return Fund, a mutual fund. The fund's objective is to provide a high return on investment through both capital appreciation and current income. The fund's portfolio consists 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). Founders Growth Fund - Contributions to this investment option began November 15, 1996, and are invested in Separate Account 55JR (SA-55JR) of CGLIC. All the assets of this pooled account are invested in the Founders Growth Fund, a mutual fund. The fund's objective is long-term capital growth. The fund's portfolio consists primarily of common stocks of well-established, high-quality, growth companies. Warburg Pincus Advisor Emerging Growth Fund - Contributions to this investment option began November 15, 1996, and are invested in Separate Account 55G (SA-55G) of CGLIC. All the assets of this pooled account are invested in the Warburg Pincus Advisor Emerging Growth Fund, a mutual fund. The fund's objective is maximum capital appreciation. The fund's portfolio consists primarily of common stocks or warrants of small to medium-sized domestic companies with emerging or renewed growth potential. INVESCO Industrial Income Fund - At December 31, 1996, this investment option was being phased out of the Plan. This fund was eliminated from the Plan on January 31, 1997. Contributions to this investment option were invested in Separate Account 55J (SA-55J) of CGLIC. All the assets of this pooled account are invested in the INVESCO Industrial Income Fund, a mutual fund. The fund's objective is to provide a high level of current income. Capital growth potential is a secondary goal. Growth & Income Fund - In January 1995, the Growth & Income Fund was eliminated from SIP. The assets in this fund were invested in Separate Account 9V (SA-9V) of CGLIC, a pooled common stock fund. - 6 - 11-K-10 11 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS Plan Termination CIGNA intends to continue the Plan indefinitely, but reserves the right to discontinue contributions or terminate the Plan in whole or in part at any time. If contributions are discontinued or the Plan is terminated, 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 the Employee Retirement Income Security Act of 1974 (ERISA) and its related regulations. Plan Trustee Mellon Bank (East) N.A., Philadelphia, Pennsylvania is the Trustee for the Plan. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements have been prepared in conformity with generally accepted accounting principles. Valuation of Investments Plan investments are reported at fair value. The fair value of the Fixed Income Fund is equivalent to its contract value. Contract value represents the aggregate amount on deposit, including accumulated interest. The fair value of CIGNA common stock is based upon quoted market price. Fair value of CGLIC's separate accounts is measured by the net unit value, which is based on the fair value of the underlying assets of the account. Net investment gain from separate accounts results from the increase in net unit value. Payment of Benefits Benefits are recorded when paid. 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 reflected as a reduction of 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. - 7 - 11-K-11 12 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 3 - INVESTMENTS An analysis of the changes in net assets available for benefits by investment fund for the year ended December 31, 1996 is presented below.
FIDELITY ADVISOR GROWTH FIXED OPPORTUNITIES CIGNA STOCK MARKET INTERNATIONAL YEAR ENDED DECEMBER 31, 1996 INCOME FUND FUND STOCK FUND INDEX FUND EQUITY FUND - --------------------------------------------------- ----------- ----------- ----------- ----------- ----------- (In thousands) Investment income Interest and dividends $ 58,907 $ -- $ 2,610 $ -- $ -- Net increase in fair value of CIGNA stock -- -- 27,248 -- -- Net investment gain (loss) from separate accounts -- 34,381 -- 13,433 1,785 ----------- ----------- ----------- ----------- ----------- Total investment income 58,907 34,381 29,858 13,433 1,785 ----------- ----------- ----------- ----------- ----------- Contributions Employees' contributions 34,990 17,605 6,814 5,265 2,908 Employer's contributions 14,415 6,966 2,712 2,040 1,148 Rollover contributions 1,358 1,189 710 564 197 ----------- ----------- ----------- ----------- ----------- Total contributions 50,763 25,760 10,236 7,869 4,253 ----------- ----------- ----------- ----------- ----------- Loan principal repayments 11,233 3,589 1,598 952 596 Loan interest received - allocated 1,717 563 264 151 97 Loans issued (19,073) (3,670) (1,908) (996) (512) Benefits paid (55,883) (9,158) (5,184) (2,611) (1,037) Transfers to other plans (27,419) (6,684) (1,673) (1,543) (581) Interfund transfers (31,132) (5,872) (1,368) 17,531 6,366 ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) (10,887) 38,909 31,823 34,786 10,967 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 902,168 188,393 81,392 49,315 19,147 ----------- ----------- ----------- ----------- ----------- End of year $ 891,281 $ 227,302 $ 113,215 $ 84,101 $ 30,114 =========== =========== =========== =========== =========== WARBURG PINCUS INVESCO FOUNDERS ADVISOR INVESCO TOTAL GROWTH EMERGING INDUSTRIAL PARTICIPANT YEAR ENDED DECEMBER 31, 1996 RETURN FUND FUND GROWTH FUND INCOME FUND LOANS - --------------------------------------------------- ----------- ----------- ----------- ----------- ----------- (In thousands) Investment income Interest and dividends $ -- $ -- $ -- $ -- $ 2,909 Net increase in fair value of CIGNA stock -- -- -- -- -- Net investment gain (loss) from separate accounts 2,510 (213) 147 2,839 -- ----------- ----------- ----------- ----------- ----------- Total investment income 2,510 (213) 147 2,839 2,909 ----------- ----------- ----------- ----------- ----------- Contributions Employees' contributions 1,976 117 89 1,977 -- Employer's contributions 764 43 33 761 -- Rollover contributions 202 35 13 193 -- ----------- ----------- ----------- ----------- ----------- Total contributions 2,942 195 135 2,931 -- ----------- ----------- ----------- ----------- ----------- Loan principal repayments 367 30 28 335 (18,728) Loan interest received - allocated 60 5 3 49 (2,909) Loans issued (334) (7) (1) (305) 26,806 Benefits paid (926) (6) (5) (559) (2,013) Transfers to other plans (455) -- -- (323) (2,294) Interfund transfers 2,663 13,358 8,928 (10,474) -- ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) 6,827 13,362 9,235 (5,507) 3,771 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 16,140 -- -- 14,173 41,450 ----------- ----------- ----------- ----------- ----------- End of year $ 22,967 $ 13,362 $ 9,235 $ 8,666 $ 45,221 =========== =========== =========== =========== =========== YEAR ENDED DECEMBER 31, 1996 TOTAL - --------------------------------------------------- ----------- (In thousands) Investment income Interest and dividends $ 64,426 Net increase in fair value of CIGNA stock 27,248 Net investment gain (loss) from separate accounts 54,882 ----------- Total investment income 146,556 ----------- Contributions Employees' contributions 71,741 Employer's contributions 28,882 Rollover contributions 4,461 ----------- Total contributions 105,084 ----------- Loan principal repayments -- Loan interest received - allocated -- Loans issued -- Benefits paid (77,382) Transfers to other plans (40,972) Interfund transfers -- ----------- NET INCREASE (DECREASE) 133,286 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 1,312,178 ----------- End of year $ 1,445,464 ===========
- 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, 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 Employer's 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) Benefits paid (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 Employer's 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 -- Benefits paid (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 =========== =========== =========== =========== ===========
- 9 - 11-K-13 14 SAVINGS AND INVESTMENT PLUS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 4 - TAX STATUS A favorable determination letter was received from the Internal Revenue Service (IRS) for the Plan and all Plan amendments through December 31, 1994, indicating that the Plan was in compliance with the applicable requirements of the Internal Revenue Code (IRC) and, therefore, was tax exempt. The Plan has been amended since receiving the determination letter. However, management believes the Plan has been in compliance with the applicable requirements of the IRC and, therefore, continues to be tax exempt. NOTE 5 - 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. Investments in the Fixed Income Fund represents participation in the general account assets of CGLIC. CGLIC is the Plan's recordkeeper. - 10 - 11-K-14 15 SUPPLEMENTAL SCHEDULES 11-K-15 16 SAVINGS AND INVESTMENT PLUS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1996 (Dollars in thousands)
Current Identity of Party Description Cost Value - ----------------- ----------------------------------------------- -------- ---------- CGLIC Fixed Income Fund $891,281 $ 891,281 CGLIC Fidelity Advisor Growth Opportunities Fund 166,065 227,302 CIGNA CIGNA Stock Fund CIGNA common stock-823,163 shares 66,776 112,465 Short-term investments 92 92 CGLIC Stock Market Index Fund 63,592 84,101 CGLIC International Equity Fund 28,015 30,114 CGLIC INVESCO Total Return Fund 19,008 22,967 CGLIC Founders Growth Fund 13,575 13,362 CGLIC Warburg Pincus Advisor Emerging Growth Fund 9,088 9,235 CGLIC INVESCO Industrial Income Fund 7,001 8,666 CGLIC Participant Loans (5.1% to 12.95%; maturity 1997-2006) 45,221 ---------- Total assets held for investment purposes 1,444,806 Investment income receivable (CIGNA Stock Fund) 658 ---------- Net assets available for benefits $1,445,464 ==========
-12- 11-K-16 17 SAVINGS AND INVESTMENT PLUS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1996 (In thousands)
Sales -------------------------------- Party Involved Description of Asset Purchases Proceeds Cost Net Gain - -------------- ----------------------- --------- -------- -------- -------- CGLIC Fixed Income Fund $111,449 $181,243 $181,243 $ -- CGLIC Fidelity Advisor Growth Opportunities Fund 60,396 55,868 44,303 11,565
-13- 11-K-17 18 SAVINGS AND INVESTMENT PLUS PLAN SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1996 (In thousands)
Original Amounts Received Unpaid Amounts of During 1996 Balances at Amounts Obligor Loans Principal Interest End of Year Overdue - ------- ---------- --------- -------- ----------- ------- Various $536 $8 $2 $281 $281
- 14 - 11-K-18 19 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 30, 1997 By: /s/ Stewart M. Beltz --------------------------- Stewart M. Beltz Plan Administrator 11-K-19 20 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 June 18, 1997, appearing on page 11-K-5 of this Form 11-K. /s/ PRICE WATERHOUSE LLP Philadelphia, Pennsylvania June 25, 1997 -E-2- -----END PRIVACY-ENHANCED MESSAGE-----