<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
AMENDMENT TO APPLICATION OR REPORT
Filed pursuant to Section 12, 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993
POLICY MANAGEMENT SYSTEMS CORPORATION
(Exact name of registrant as specified in its charter)
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items,
financial statements, exhibits or other portions of its Annual
Report on Form 10-K for the fiscal year ended December 31, 1993
as set forth in the pages attached hereto:
List all such items, financial statements, exhibits or other
portions amended.
(1) Item 14
(2) Form 11-K (401(k) Retirement Savings Plan)
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed
on its behalf by the undersigned, thereunto duly authorized.
POLICY MANAGEMENT SYSTEMS CORPORATION
(Registrant)
Date: March 29, 1995 By: Timothy V. Williams
Executive Vice President, Chief
Financial Officer
<PAGE> 2
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K
Financial Statements and Schedules
See Index to Consolidated Financial Statements and
Supplementary Data on Page 34.
Exhibits Filed
Exhibits required to be filed with this Annual Report on Form
10-K or which have been incorporated herein by reference are listed
in the following Exhibit Index.
Pursuant to Rule 15d-21 promulgated under the Securities
Exchange Act of 1934, the following annual report for the Company's
employee stock purchase plan is filed herewith:
Form 11-K for the Company's 401(k) Retirement Savings Plan for
the year ended December 31, 1993.
Form 8-K
The Company filed a report on Form 8-K, dated December 8, 1993
under Item 5. Other events, relating to a letter issued to the
Company's stockholders, customers and employees, advising them of
recent developments in connection with the Company's audit and its
business.
<PAGE> 3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 1993
POLICY MANAGEMENT SYSTEMS CORPORATION
401(k) RETIREMENT SAVINGS PLAN
Issuer of securities held pursuant to the Plan is
POLICY MANAGEMENT SYSTEMS CORPORATION
One PMS Center, Blythewood, South Carolina 29016
<PAGE> 4
Financial Statements and Exhibits
Sequentially
Numbered
Pages
Financial Statements of the Plan together with Notes and
Independent Public Accountants' Report for the years ended
December 31, 1993 and 1992....................................... 8-18
Schedule I - Assets Held for Investment.......................... 20
Schedule II - Transactions or Series of Transactions In Excess of
5% Of The Current Value Of Plan Assets........................... 21
Consent of Independent Public Accountants dated March 15, 1995,
annexed hereto................................................... 22
<PAGE> 5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, Policy Management Systems Corporation 401(k) Retirement Savings
Plan Committee has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
POLICY MANAGEMENT SYSTEMS CORPORATION
401(k) Retirement Savings Plan
Date: March 30, 1995 By: Timothy V. Williams
Executive Vice President, Chief
Financial Officer
<PAGE> 1
POLICY MANAGEMENT SYSTEMS CORPORATION
401(k) RETIREMENT SAVINGS PLAN
(formerly Policy Management Systems Corporation
401(k) Retirement Plan)
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
for the years ended December 31, 1993 and 1992
With Report of Independent Accountants
<PAGE> 2
Policy Management Systems Corporation
401(k) Retirement Savings Plan
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
__________
Page
Report of Independent Accountants 1
Financial Statements:
Statements of Net Assets Available for Plan
Benefits, with Fund Information as of
December 31, 1993 and 1992 2-3
Statements of Changes in Net Assets Available for
Plan Benefits, with Fund Information for the
years ended December 31, 1993 and 1992 4-5
Notes to Financial Statements 6-11
Supplemental Schedules:
Form 5500, Item 27(a) - Schedule of Assets Held
for Investment Purposes, December 31, 1993 12
Form 5500, Item 27(d) - Schedule of Reportable
Transactions for the year ended December 31, 1993 13
<PAGE> 3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Administrative Committee of
Policy Management Systems Corporation
401(k) Retirement Savings Plan
We have audited the accompanying statements of net assets
available for Plan benefits of the Policy Management Systems
Corporation 401(k) Retirement Savings Plan (formerly the Policy
Management Systems Corporation 401(k) Retirement Plan) (the "Plan)
as of December 31, 1993 and 1992, and the related statements of
changes in net assets available for Plan benefits for the years
then ended. 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 in accordance with generally accepted
auditing standards. Those standards 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. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a resonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets available
for Plan benefits of the Plan at December 31, 1993 and 1992, and
the changes in net assets available for Plan benefits for the years
then ended, in conformity with generally accepted accounting
principles.
Our audit was made for the purpose of forming an opinion on
the basic financial statements taken as a whole. The supplemental
schedules of assets held for investment purposes and reportable
transactions are presented for the purpose of additional analysis
and are not a required part of the basic financial statements but
are supplementary information required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The Fund
Information in the statement of net assets available for Plan
benefits and the statement of changes in net assets available for
Plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for Plan benefits
and changes in net assets available for Plan benefits of each fund.
The supplemental schedules and Fund Information have been subjected
to the auditing procedures applied in our audit of the basic
financial statements and, in our opinion, are fairly stated in all
material respects, in relation to the basic financial statements
taken as a whole.
Atlanta, Georgia
November 22, 1994
<PAGE> 4
<TABLE>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(k) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
as of December 31, 1993
<CAPTION>
U.S. Puritan Magellan PMSC Fixed
Loan Government Mutual Mutual Bond Stock Income Forfeiture
Fund Reserves Fund Fund Fund Fund Fund Account Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at current
value:
Short-term investments $ $ 260 $ 50,195 $ 63,926 $ $ 233,378 $ 69 $ 32,782 $ 380,610
Mutual Funds 3,162,673 5,401,978 7,402,815 1,001,555 16,969,021
Bonds 101,725 101,725
Common Stock 6,539,609 70,229 6,609,838
Total Investments 3,162,933 5,452,173 7,466,741 101,725 6,772,987 1,001,624 103,011 24,061,194
Receivables:
Accrued interest &
dividends 1,056 27,156 192 204 28,608
Transfers receivable 677,661 (51,437) (34,438) (597,012) 5,226 0
Loans receivable 281,697 281,697
Employer contributions
receivable 45,691 (42,608) (53,654) 277,507 (9,468) 217,468
Employee contributions
receivable 215 303 382 276 67 1,243
Total Receivables 281,697 723,567 (92,686) (87,710) 27,156 (319,037) (3,971) 529,016
Cash 351 9 88 448
Total Assets 281,697 3,886,500 5,359,487 7,379,031 128,881 6,454,301 997,662 103,099 24,590,658
LIABILITIES
Accounts payable 4,093 1,974 3,120 245 368 9,800
Accrued forfeitures (108) 127,431 127,323
Accrued loan disbursements 406 841 1,247
Total Liabilities 4,391 2,815 3,120 127,676 368 138,370
Net assets available
for plan benefits $281,697 $3,882,109 $5,356,672 $7,375,911 $128,881 $6,326,625 $ 997,294 $103,099 $24,452,288
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 5
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
as of December 31, 1992
<CAPTION>
U.S. Puritan Magellan PMSC
Loan Government Mutual Mutual Bond Stock
Fund Reserves Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at current value:
Short-term investments $ 29,355 $ 96 $ 82 $ 446,835 $ 476,368
Mutual Funds 4,222,440 3,653,006 5,345,807 13,221,253
Bonds $124,750 124,750
Common Stock 13,577,885 13,577,885
Total Investments 4,251,795 3,653,102 5,345,889 124,750 14,024,720 27,400,256
Receivables:
Accrued interest & dividends 21,379 21,379
Transfers receivable (6,033) (2,624) (19,191) (79) 28,294 367
Loans receivable $ 217,777 4,271 (2,414) (1,731) (25) 217,878
Employer contributions receivable 126,054 126,054
Employee contributions receivable 5,249 4,526 (985) 28,815 37,605
Total Receivables 217,777 3,487 (512) (21,907) 21,300 183,138 403,283
Cash 38 27 41 1,242 1,348
Other Assets 8,802 8,802
Total Assets 217,777 4,255,320 3,652,617 5,324,023 146,050 14,217,902 27,813,689
LIABILITIES
Accounts payable 12,095 3,767 1,911 126,801 144,574
Accrued forfeitures 328 573,498 573,826
Total Liabilitie 12,423 3,767 1,911 700,299 718,400
Net assets available
for plan benefits $ 217,777 $4,242,897 $3,648,850 $5,322,112 $146,050 $13,517,603 $27,095,289
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 6
<TABLE>
POLICY MANAGEMENT SYSTEMS CORPORATION
401 (k) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS FOR PLAN BENEFITS, WITH FUND INFORMATION
for the year ended December 31, 1993
<CAPTION>
U.S. Puritan Magellan PMSC Fixed
Loan Government Mutual Mutual Bond Stock Income Forfeiture
Fund Reserves Fund Fund Fund Fund Fund Account Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment Income:
Net appreciation
(depreciation) in market
value $ 247,229 $ 709,737 $ 2,644 $(8,362,002) $ (12,634) $ (58,616) $(7,473,642)
Dividends and interest $ $ 97,405 634,846 683,271 5,777 2,894 71,448 361 1,496,002
97,405 882,075 1,393,008 8,421 (8,359,108) 58,814 (58,255) (5,977,640)
Cash Contributions:
Employer 63,050 2,065,361 2,128,411
Employee 675,686 1,309,612 1,700,163 1,206,215 376,032 5,267,708
738,736 1,309,612 1,700,163 3,271,576 376,032 7,396,119
Transfers (463,631) 243,242 93,925 (557,903) 704,141 171,117 190,891
Loan repayments (87,040) 7,254 25,885 42,109 20,248 5,131 13,587
Other additions 1,148 2,806 3,954
Total Additions (87,040) 380,912 2,460,814 3,229,205 8,421 (5,622,381) 1,144,118 112,862 1,626,911
Deductions (Additions) from net
assets attributed to:
Distributions 33,290 680,371 667,257 1,051,582 25,669 1,249,912 125,790 3,833,871
Forfeitures 711 280 281 194,605 195,877
Loan disbursements (184,250) 28,031 37,009 52,225 27,862 13,645 (25,478)
Other deductions 32,587 48,446 71,318 (79) 96,218 7,389 9,763 265,642
Total Deductions (150,960) 741,700 752,992 1,175,406 25,590 1,568,597 146,824 9,763 4,269,912
Net increases (decreases) 63,920 (360,788) 1,707,822 2,053,799 (17,169) (7,190,978) 997,294 103,099 (2,643,001)
Net assets available for plan
benefits
Beginning of year 217,777 4,242,897 3,648,850 5,322,112 146,050 13,517,603 27,095,289
End of year $ 281,697 $3,882,109 $5,356,672 $7,375,911 $ 128,881 $ 6,326,625 $ 997,294 $ 103,099 $24,452,288
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 7
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
for the year ended December 31, 1992
<CAPTION>
U.S. Puritan Magellan PMSC
Loan Government Mutual Mutual Bond Stock
Fund Reserves Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation)
in market value $ 114,693 $ (380,047) $ 1,737 $ 2,386,358 $ 2,122,741
Dividends and interest $ 208 $ 157,712 323,080 722,213 5,334 1,689 1,210,236
208 157,712 437,773 342,166 7,071 2,388,047 3,332,977
Cash Contributions:
Employer 1,341,057 1,341,057
Employee 977,344 998,004 1,497,506 684,779 4,157,633
977,344 998,004 1,497,506 2,025,836 5,498,690
Transfers from other plans 156,629 27,888 1,773,816 1,958,333
Transfers 67,045 (786,942) 161,439 269,470 (310) 359,865 70,567
Loan related transfers (56,651) 35,385 19,469 31,730 12,163 42,096
Total Additions 10,602 540,128 1,616,685 2,140,872 34,649 6,559,727 10,902,663
Deductions (Additions) from net
assets attributed to:
Distributions 19,110 1,191,776 380,953 620,601 12,050 793,381 3,017,871
Forfeitures (7,139) (418) (1,045) (300) (17,642) (26,544)
Loan disbursements (94,169) 33,077 13,617 15,364 3,436 (28,675)
Other deductions 13,788 32,888 17,655 28,570 1,740 55,536 150,177
Total Deductions (61,271) 1,250,602 411,807 663,490 13,490 834,711 3,112,829
Net increases (decreases), before
change in accounting principle 71,873 (710,474) 1,204,878 1,477,382 21,159 5,725,016 7,789,834
Cumulative effect of a change in
accounting principle 571,801 96,269 134,609 3,725 157,923 964,327
Net increases (decreases) 71,873 (138,673) 1,301,147 1,611,991 24,884 5,882,939 8,754,161
Net assets available for plan benefits
Beginning of year 145,904 4,381,570 2,347,703 3,710,121 121,166 7,634,664 18,341,128
End of year $ 217,777 $4,242,897 $3,648,850 $5,322,112 $ 146,050 $13,517,603 $27,095,289
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS
_______
1. Establishment of Plan
The Board of Directors of Policy Management Systems Corporation
(the "Company") established the Policy Management Systems
Corporation 401(k) Retirement Savings Plan (formerly the Policy
Management Systems Corporation 401(k) Retirement Plan) (the "Plan")
to provide a before-tax savings retirement program for all eligible
employees of the Company. The Plan, which became effective on April
1, 1990, replaced the retirement plan portion of the Stock Purchase
Savings Program for Employees of Policy Management Systems
Corporation. Also, the related retirement plans of Advanced System
Application, Inc. (ASA) and Mandat Computer Corporation (MDC), both
wholly-owned subsidiaries of the Company, were merged into the Plan
effective January 1, 1991 and July 1, 1991, respectively. The Plan
is subject to the requirements of the Employee Retirement Income
Security Act of 1974 (ERISA).
On December 31, 1992 the Stock Purchase Savings Program for
Employees of Policy Management Systems Corporation was merged into
the Plan and all the assets available to Participants were
transferred into the Plan. The Plan merger was recorded in the
Statement of Changes in Net Assets Available for Plan Benefits by
reflecting the transfer of assets of $1,958,333 from the Stock
Purchase Savings Program for employees of Policy Management Systems
Corporation as a single line item.
2. Plan Description
General
The following description of the Plan is provided for general
information purposes only. Participants should refer to the plan
document for a more complete description of the Plan's provisions.
Eligibility
All employees of the Company and its participating affiliates, who
are U.S. citizens or U.S. residents, who have attained the age of
18, and who have completed any six-consecutive-month period of
employment during which they have completed at least 500 Hours of
Service are eligible to participate in the Plan. A Participant who
chooses not to enroll in the Plan when they are first eligible may
elect to participate at a later date, in accordance with the terms
of the Plan.
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS, Continued
_______
2. Plan Description, Continued:
Contributions
Prior to the merger of the Stock Purchase Savings Program into the
Plan, Participants could make before-tax contributions through
payroll deductions, in two percent increments, of up to 10% of
their eligible earnings. In no event, however, could the before-tax
contributions for a calendar year exceed the lesser of 10% of the
Participant's eligible earnings or the dollar limit established by
law.
Subsequent to the merger of the Stock Purchase Savings Program into
the Plan, Participants may make contributions through payroll
deductions, in two percent increments, of up to 10% of their
eligible earnings on either a before-tax basis or an after-tax
basis ("Basic Before-Tax and After-Tax Contributions"), or a
combination of both. In addition, Participants may elect to make
Additional Before-Tax or After-Tax Contributions of 2% or 4%.
Additional Contributions are not eligible for Employer Matching
Contributions. The Participant's combined Basic and Additional
Before-Tax and After-Tax Contributions may not exceed 10% of a
Participant's eligible earnings.
Prior to the merger of the Stock Purchase Savings Program into the
Plan, each calendar month the Company contributed a matching amount
equal to 50% of a Participant's first 6% of contributions.
Subsequent to the merger of the Stock Purchase Savings Program into
the Plan, the Company will contribute a matching amount equal to
50% of a Participant's first 6% of Basic Before-Tax Contributions
or Basic After-Tax Contributions, but not both. The Company will
not match any Additional Before-Tax Contributions or any Additional
After-Tax Contributions. The Employer Matching Contribution is
allocated to the Participant's account as of December 31 each year
only if the Participant is actively employed on December 31 and has
worked 1,000 or more hours during the Plan Year. Prior to October
1993, the Employer Matching Contributions were invested by the
Trustee in Policy Management Systems Corporation common stock. By
directive of the Administrative Committee of the Plan, Employer
Matching Contributions made after October 1993 were, and continue
to be, invested in the Fidelity Retirement Government Money Market
Fund.
Investment Elections
Each Participant is required to submit an election form to the Plan
Administrator designating the allocation of the Participant's
contributions among the Plan's investment funds in multiples of 5%.
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS, Continued
_______
2. Plan Description, Continued:
In addition, Participants may change the investment of
contributions and may move their vested balances among investment
funds once each quarter effective at the beginning of each calendar
quarter if they notify the Plan Administrator in writing at least
30 days prior to the effective date of the change.
In addition to the contributions specified above, Participants who
receive a qualified distribution under section 401(a) of the
Internal Revenue Code of 1986 as amended (the "Code"), from any
other tax qualified plan, may have all or part of such distribution
transferred into the Plan. Such rollover contributions are subject
to tax regulations imposed by the Code.
Vesting
A Participant is always 100% vested in his or her Before-Tax
Contribution Account, After-Tax Contribution Account and Rollover
Account. A Participant will become fully vested in his or her
Employer Matching Contribution Account when the first of the
following occurs: the Participant obtains five years of Credited
Service; the Participant reaches his or her Normal Retirement Date;
the Participant becomes Permanently Disabled; or on the date of the
Participant's death.
Forfeiture Allocations
All Participant forfeitures are used to reduce future Employer
Matching Contributions to the Plan.
Benefit Payments
Prior to the merger of the Stock Purchase Savings Program into the
Plan, the Plan required that a Participant's Before-Tax
Contributions, Rollover Contributions and vested Employer Matching
Contributions remain in the Plan until the Participant's death,
permanent disability, legal retirement age or termination of
employment, unless a withdrawal of such funds qualified as a
"hardship" withdrawal or Qualified Domestic Relations Order (QDRO).
Eligible Participants could, however, request a loan from their
vested Before-Tax and Rollover Accounts. A Participant's After-Tax
Contributions, if any, were available for inservice withdrawal. All
distributions from the Plan were made in the form of cash and or
securities as credited to a Participant's account.
Subsequent to the merger of the Stock Purchase Savings Program into
the Plan, the Participant's After-Tax Contributions may be
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS, Continued
_______
2. Plan Description, Continued:
withdrawn at any time upon written request of the Participant. In
addition, a Participant may withdraw all or any part of his or her
vested Employer Contributions transferred to the Plan from the
Stock Purchase Savings Program and the vested Employer Matching
Contributions on his or her Basic After-Tax Contributions, but only
to the extent that such contributions have been in the Plan or the
Stock Purchase Savings Program for at least two full Plan Years
after the Plan Year in which such contributions were made.
Administrative Fees
Administrative expenses of the Plan may be paid out of Plan assets
if not paid by the Company.
3. Significant Accounting Policies
Basis of Accounting
The accompanying financial statements have been prepared on the
accrual basis in accordance with generally accepted accounting
principles.
Change in Accounting Method
In accordance with guidance issued by the American Institute of
Certified Public Accountants in 1993, the Plan has changed its
method of accounting for distributions such that all amounts
elected to be withdrawn and distributed from the Plan by
participants are no longer recorded as a liability in the Statement
of Net Assets Available for Plan Benefits. The effect of the
change was to increase the net assets available for plan benefits
as of January 1, 1992 by $964,327. As of December 31, 1993 and
1992, $7,118 and $15,909 have been allocated to accounts of persons
who have withdrawn from participation in the earnings and
operations of the Plan, but for which disbursement of those funds
from the Plan has not yet been made. The following is a
reconciliation to the amounts reported on Form 5500:
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS, Continued
_______
3. Significant Accounting Policies, Continued:
Net assets available for plan 1993 1992
benefits as stated in the
financial statements $24,452,288 $ 27,095,289
Less: Distributions payable (7,118) (15,909)
Net assets available for plan
benefits per Form 5500 $ 24,445,170 $ 27,079,380
In addition, the report differs from the Form 5500 by the same
amount for benefit payments on the Statement of Changes in Net
Assets.
Investments
The Plan invests in open-ended funds managed by Fidelity
Investments with the exception of the PMSC Stock and Forfeiture
Fund. Each fund is valued at quoted market prices to determine a
current fund value. Investments in securities for which exchange
quotations are readily available are valued at the last sale price,
or, if no sale, at the closing bid price. Debt securities are
valued in the same manner or in some other manner, if, in the
opinion of the Board of Trustees, such other manner would more
accurately reflect the fair value of such debt securities.
Short-term investments are valued either at amortized cost or
original cost plus accrued interest, both of which approximate
market value.
The Plan's investments, including the related party interest in
Policy Management Systems Corporation common stock, are held by a
bank-administered trust fund. The Plan presents in the statement
of changes in net assets available for plan benefits the net
appreciation (depreciation) in the fair value of its investments
which consists of the realized gains or losses and the unrealized
appreciation (depreciation) on those investments.
In 1993, the Plan added a Fixed Income Fund investment option. The
Plan also established a Forfeiture Account to hold forfeitures of
employer contributions. Additionally, by directive of the
Administrative Committee of the Plan, the PMSC Stock Fund was
closed for the investment of contributions made after October 1993.
4. Tax Status
The Plan is intended to be qualified under Sections 401(k) and
401(a) of the Code. The Company intends to submit the plan for a
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS, Continued
_______
4. Tax Status, Continued:
determination letter from the Internal Revenue Service in early
1995. In the opinion of management, the Plan was designed and is
operated in a manner that qualified it for tax-exempt status.
5. Termination of Plan
The Company expects and intends to continue the Plan in force
indefinitely, but has reserved the right to amend or terminate the
Plan as necessary. If the Plan were to be terminated, Participants
would become fully vested and all assets of the Plan would be
distributed to the individual Participants based upon the vested
balances in their individual account at date of termination.
6. Subsequent Events
On January 1, 1994, the Cybersaver 401(k) Plan for Employees of
Cybertek Corporation (the "Cybersaver Plan") was merged into the
Plan and all the assets available to Participants in the Cybersaver
Plan were transferred into the Plan, increasing Plan assets by
approximately $6,200,000.
<PAGE> 14
SUPPLEMENTAL SCHEDULES
<PAGE> 15
<TABLE>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(k) RETIREMENT SAVINGS PLAN
FORM 5500, ITEM 27(a)-SCHEDULE OF ASSETS HELD
FOR INVESTMENT PURPOSES
December 31, 1993
<CAPTION>
Current
Identity of Issue Description of Investment Cost Value
<S> <C> <C> <C>
Fidelity 3,162,673 units Fidelity Money Market Trust
U.S. Government Retirement Government Money Market Portfolio $ 3,162,673 $ 3,162,673
Reserves
260 units Valiant General Fund #62 260 260
Fidelity 342,983 units Fidelity Puritan Fund, Inc. 4,942,661 5,401,978
Puritan Fund
50,195 units Dreyfus Cash Management Plus 50,195 50,195
Fidelity 104,486 units Fidelity Magellan Fund, Inc. 6,823,482 7,402,815
Magellan Fund
63,553 units Dreyfus Cash Management Plus 63,553 63,553
373 units Valiant General Fund #62 373 373
Series EE Bonds 204,350 units United States Savings Bonds, 101,725 101,725
Account Series EE, 5.58% to 7.5%, maturing at
various dates through December 1, 2017
PMSC 210,947 shares Policy Management Systems
Stock Fund Corporation Common Stock * 9,191,655 6,539,343
192,191 units Valiant General Fund #62 192,121 192,121
41,257 units Dreyfus Cash Management Plus 41,257 41,257
152 shares The Seibels Bruce Group
Incorporated Common Stock 2,178 266
Fixed Income 96,026 units First Union Funds
Account Fixed Income Portfolio Trust 1,016,165 1,001,555
69 units Valiant General Fund #62 69 69
Forfeiture 32,782 units Valiant General Fund #62 32,782 32,782
Account
2,265 shares Policy Management Systems
Corporation Common Stock * 128,506 70,229
$28,749,655 $24,061,194
<FN>
*Indicates party-in-interest to the Plan.
Note:
The Valiant General Fund #62 and Dreyfus Cash Management Plus represents funds held in a money market account
for the purpose of paying administrative expenses related to the purchasing and selling of investments.
</TABLE>
<PAGE> 16
<TABLE>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(k) RETIREMENT SAVINGS PLAN
FORM 5500, ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
<CAPTION>
Value of
Identity of Asset on
Party Selling Cost of Transaction Net Gain
Involved Description of Assets Price Asset Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity U.S. Sales:
Government 1,709,650 units Fidelity U.S. Government
Reserves Reserves $1,709,650 $1,709,650 $1,709,650 $ -
Fund
Fidelity Purchases:
Puritan 1,594,574 units First Union Master
Fund Reserve Trust - 1,594,574 1,594,574 -
136,475 units Fidelity Puritan Fund, Inc. - 2,168,068 2,168,068 -
Sales:
1,594,670 units First Union Master
Reserve Trust 1,594,670 1,594,670 1,594,670 -
Fidelity Purchases:
Magellan 1,943,751 units First Union Master
Fund Reserve Trust - 1,943,751 1,943,751 -
34,834 units Fidelity Magellan Fund, Inc. - 2,431,521 2,431,521 -
Sales:
1,943,833 units First Union Master
Reserve Trust 1,943,833 1,943,833 1,943,833 -
PMSC Common Purchases:
Stock Fund 77,194 units Policy Management Systems
Corporation Common Stock* - 2,911,833 2,911,883 -
Sales:
1,465,446 units First Union Master
Reserve Trust 1,465,446 1,465,446 1,465,446 -
* Indicates party-in-interest to the Plan.
</TABLE>
<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration
statement of Policy Management Systems Corporation on Form S-8
(File No. 33-33848) of our report dated November 22, 1994, on our
audits of the financial statements of the Policy Management Systems
Corporation 401(k) Retirement Savings Plan as of December 31, 1993
and 1992, and for the years then ended, which report is included in
this Annual Report on Form 11-K.
Coopers & Lybrand
Atlanta, Georgia
March 15, 1995
