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Previous: PUTNAM HEALTH SCIENCES TRUST, 497, 1994-06-28 |
Next: DAILY TAX FREE INCOME FUND INC, NSAR-A, 1994-06-28 |
<PAGE> 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, 1993
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
<PAGE> 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-22 of this Annual
Report on Form 11-K.
11-K-2
<PAGE> 3
SAVINGS AND INVESTMENT PLUS PLAN
Financial Statements and
Supplemental Schedules
Years Ended
December 31, 1993 and 1992
11-K-3
<PAGE> 4
SAVINGS AND INVESTMENT PLUS PLAN
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
Number
------
<S> <C>
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 4-13
Supplemental Schedules:
Schedule I - Assets Held for Investment 15
Schedule II - Party-In-Interest Transactions 16
Schedule III - Reportable Transactions 17
Schedule IV - Reconciliation of Form 5500 to Financial
Statements 18
</TABLE>
11-K-4
<PAGE> 5
Price Waterhouse Thirty South Seventeenth Street
Philadelphia, PA 19103-4094
Telephone 215-575-5000
[PRICE WATERHOUSE LOGO]
REPORT OF INDEPENDENT ACCOUNTANTS
June 27, 1994
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, 1993 and 1992,
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 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
11-K-5
<PAGE> 6
SAVINGS AND INVESTMENT PLUS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
-------------------------------------
1993 1992
<S> <C> <C>
ASSETS
Fixed Income Fund (formerly Guaranteed Fund) $ 772,747,272 $ 525,838,530
Growth and Income Fund (formerly Variable Fund) 99,286,123 94,326,490
Fidelity Advisor Growth Opportunities Fund 55,574,551 --
Stock Market Index Fund 18,533,813 --
CIGNA Stock Fund 43,512,462 39,484,065
Participant Loans 21,736,673 --
------------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 1,011,390,894 $ 659,649,085
============= ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
- 2 -
11-K-6
<PAGE> 7
SAVINGS AND INVESTMENT PLUS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------
1993 1992
<S> <C> <C>
INVESTMENT INCOME
Interest $ 48,035,310 $ 38,983,675
Dividends 2,030,134 2,042,368
Realized gains on sale of CIGNA stock 3,580,539 147,141
Unrealized depreciation in CIGNA stock (871,194) (1,501,910)
Net investment gain from separate accounts 4,198,363 3,598,550
-------------- -------------
Total investment income 56,973,152 43,269,824
-------------- -------------
CONTRIBUTIONS
Employees' contributions 69,388,945 65,740,043
Employers' contributions
(net of forfeitures of $797,184 in 1993; $429,800 in 1992) 28,031,898 27,412,216
Rollover contributions 1,947,228 -
-------------- -------------
Total contributions 99,368,071 93,152,259
-------------- -------------
WITHDRAWALS AND DISTRIBUTIONS (45,160,360) (46,961,623)
-------------- -------------
COMMISSION EXPENSE (10,712) -
-------------- -------------
NET INCREASE 111,170,151 89,460,460
TRANSFERS FROM OTHER PLANS 240,571,658 -
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 659,649,085 570,188,625
-------------- -------------
End of year $ 1,011,390,894 $ 659,649,085
============== =============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
- 3 -
11-K-7
<PAGE> 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 $235,840
and $228,860 in 1993 and 1992, respectively. 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 $8,994 and $8,728 in
1993 and 1992, respectively. To comply with anti-discrimination provisions,
tax-deferred contributions for highly compensated employees were effectively
limited to 5.9% and 5.5% of eligible earnings in 1993 and 1992, 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 are fully vested for participants who
were employees of CIGNA or one of its subsidiaries on December 31, 1984 or who
were employees of CIGNA Healthplan Inc. (CHP) or one of its subsidiaries on May
6, 1988. Employer contributions for all other participants vest 20% for each
year of service. Employer contributions and related investment earnings are
fully vested upon an employee's attainment of retirement age, death or
permanent disability, or upon the employer's termination of participation in
the Plan. Upon termination of a participant's employment, that portion of
employer contributions which is not vested is forfeited. Forfeited amounts are
used to reduce future employer contributions.
Effective July 1, 1993, the Plan began to 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.
Effective July 1, 1993, the Plan began to permit participants to borrow a
portion of their account, subject to certain limitations, at a competitive rate
of interest with a specified repayment period. The loan is secured by the
participant's SIP account balance. Generally, loan repayments are made by
payroll deduction. The interest portion of every repayment is added to the
participant's SIP account balance as earnings. 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. Loan
interest rates remain fixed during the term of the loan. 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 withdrawn funds may be subject to immediate taxation and a possible
10% penalty tax.
- 4 -
11-K-8
<PAGE> 9
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF PLAN (continued)
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 his or her account, monthly
installments for up to 15 years, or an annuity. To the extent amounts are
invested in the CIGNA Stock Fund, such amounts may be received in CIGNA common
stock.
Effective July 1, 1993, Plan amendments renamed two of the three existing funds
and added two new investment fund options. Plan participants may elect to
invest in any combination of the five funds, and are permitted to transfer
assets, subject to certain restrictions, among the funds.
Growth and Income Fund (formerly named the Variable Fund) - Prior to January 1,
1993, contributions to this fund were invested in Separate Account 3 (SA-3) of
Connecticut General Life Insurance Company (CGLIC), a CIGNA subsidiary. SA-3,
a pooled common stock fund, invested in common stock of companies chosen
principally for long-term growth and capital appreciation. SA-3 was closed
effective December 31, 1992. Effective January 1, 1993, the assets in this
fund were transferred into Separate Account 9V (SA-9V) of CGLIC, also a pooled
common stock fund. The investment focus for SA-9V is long-term growth of
capital and a reasonable level of income.
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.
Fixed Income Fund (formerly named the Guaranteed Fund) - This fund consists of
a group fixed annuity contract with CGLIC and effective December 31, 1993, as a
result of a plan merger, guaranteed investment contracts maintained in an
account with The Equitable Life Assurance Society of the United States
(Equitable). New contributions to the fund are invested in the contract with
CGLIC. Contributions or transfers into the Equitable account are not
permitted. The contracts with CGLIC and Equitable guarantee the principal and
accumulated interest of all funds deposited. The annual rates of interest are
declared in advance and subject to change. The effective annual yields during
1993 and 1992 for CGLIC's contract were 7.5% and 8.4%, respectively. The
effective annual yield of the Equitable contracts during 1993 was 8.14%, and
the income on these contracts was included in the net assets merged into the
Plan.
Stock Market Index Fund - Contributions to this new investment option are
invested in Separate Account B (SA-B) of CGLIC, a pooled common stock fund.
The fund's objective is to attempt to match the performance of the Standard &
Poor's 500 Composite Stock Price Index.
Fidelity Advisor Growth Opportunities Fund - Contributions to this new
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 Portfolio. The fund's objective is long-term
capital growth. The Fidelity portfolio consists primarily of common stocks or
securities convertible into common stocks.
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.
- 5 -
11-K-9
<PAGE> 10
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Certain reclassifications have been made to the 1992 financial statements to
conform to the 1993 presentation.
The group fixed annuity contract with CGLIC and the guaranteed investment
contracts with 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.
Employers' contributions receivable is net of employee forfeitures and any
excess contributions which are applied against future employer contributions.
Benefits are recorded when paid.
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, 1993 and 1992 were as follows:
<TABLE>
<CAPTION>
Employers'
Employees' Contributions
Contributions (Net of
1993 and Rollovers Forfeitures)
----------------------------------------------------------- ------------- -------------
<S> <C> <C>
CIGNA Corporation $ 3,554,204 $ 1,390,146
CIGNA Holdings, Inc. 17,583 7,318
CIGNA Dental Health, Inc. 346,415 145,370
CIGNA Healthplan, Inc. subsidiaries 6,936,582 2,710,494
CIGNA Information Services 456,625 182,159
CIGNA Investments, Inc. 1,686,297 731,384
Connecticut General Life Insurance Company 21,438,087 8,484,371
ESIS, Inc. 48,161 21,522
INA Life Insurance Company of New York 104,238 40,262
Insurance Company of North America 26,717,386 10,279,448
Life Insurance Company of North America 1,952,314 831,307
MCC Behavioral Care, Inc. 1,508,208 544,192
Montgomery and Collins, Inc. 186,969 71,165
Recovery Services International, Inc. 334,961 116,070
Ross-Loos Healthplan of California, Inc. 6,048,143 2,476,690
---------- ----------
$71,336,173 $28,031,898
========== ==========
</TABLE>
- 6 -
11-K-10
<PAGE> 11
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 3 - PARTICIPATION IN THE PLAN (continued)
<TABLE>
<CAPTION>
Employers'
Employees' Contributions (Net of
1992 Contributions Forfeitures)
-------------------------------------------------------------------- ------------- ---------------------
<S> <C> <C>
CIGNA Corporation $ 3,317,625 $ 1,396,689
CIGNA Dental Health, Inc. 274,863 114,222
CIGNA Healthplan, Inc. subsidiaries 5,990,628 2,496,112
CIGNA Information Services 393,546 159,489
CIGNA Investments, Inc. 1,561,705 710,291
Connecticut General Life Insurance Company 22,650,478 9,554,168
ESIS, Inc. 37,059 17,107
International Benefit Services Corp. 98,531 41,279
INA Life Insurance Company of New York 90,685 35,178
Insurance Company of North America 22,299,738 9,100,932
Life Insurance Company of North America 1,856,566 799,649
MCC Behavioral Care, Inc. 1,077,587 419,841
Montgomery and Collins, Inc. 222,645 93,772
Recovery Services International, Inc. 291,287 104,110
Ross-Loos Healthplan of California, Inc. 5,574,376 2,368,015
Self-Insurers' Management Corp. 2,724 1,362
---------- ----------
$65,740,043 $27,412,216
========== ==========
</TABLE>
- 7 -
11-K-11
<PAGE> 12
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 4 - Investments
A breakdown by asset type of net assets available for benefits for each fund
as of December 31, 1993 and 1992 is presented below.
<TABLE>
<CAPTION>
FIXED GROWTH & FIDELITY ADVISOR
INCOME FUND INCOME FUND GROWTH
(FORMERLY (FORMERLY OPPORTUNITIES
AS OF DECEMBER 31, 1993 GUARANTEED FUND) VARIABLE FUND) FUND
- - - ------------------------------------------------- ---------------- ------------- ---------------
<S> <C> <C> <C>
Assets
Investments, at fair value:
Connecticut General Life Insurance Company:
Fixed annuity contract $ 737,360,747 - -
Separate Account 9V - $ 99,286,123 -
Separate Account 55A - - $ 55,574,551
Separate Account B - - -
Equitable guaranteed investment contracts 35,386,525 - -
CIGNA Corporation common stock - - -
Short-term investments - - -
Participant loans - - -
------------- ------------ --------------
Total investments 772,747,272 99,286,123 55,574,551
Investment income receivable - - -
------------- ------------ ------------
Net assets available for benefits $ 772,747,272 $ 99,286,123 $ 55,574,551
============= ============ ============
</TABLE>
<TABLE>
<CAPTION>
STOCK MARKET CIGNA PARTICIPANT
AS OF DECEMBER 31, 1993 INDEX FUND STOCK FUND LOANS TOTAL
- - - ------------------------------------------------- ------------- ----------- ------------- ----------------
<S> <C> <C> <C> <C>
Assets
Investments, at fair value:
Connecticut General Life Insurance Company:
Fixed annuity contract - - - $ 737,360,747
Separate Account 9V - - - 99,286,123
Separate Account 55A - - - 55,574,551
Separate Account B $ 18,533,813 - - 18,533,813
Equitable guaranteed investment contracts - - - 35,386,525
CIGNA Corporation common stock - $ 42,723,149 - 42,723,149
Short-term investments - 274,523 - 274,523
Participant loans - - $ 21,736,673 21,736,673
------------ ------------ ------------ ----------------
Total investments 18,533,813 42,997,672 21,736,673 1,010,876,104
Investment income receivable - 514,790 - 514,790
------------ ------------ ------------ ----------------
Net assets available for benefits $ 18,533,813 $ 43,512,462 $ 21,736,673 $ 1,011,390,894
============ ============ ============ ================
</TABLE>
-8-
11-K-12
<PAGE> 13
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 4 - Investments (continued)
<TABLE>
<CAPTION>
GUARANTEED VARIABLE CIGNA
AS OF DECEMBER 31, 1992 FUND FUND STOCK FUND TOTAL
- - - --------------------------------------------- ------------ ------------ ----------------- ------------------
<S> <C> <C> <C> <C>
Assets
Investments, at fair value:
Connecticut General Life Insurance Company:
Fixed annuity contract $ 516,753,531 - - $ 516,753,531
Separate Account 3 - $ 93,144,239 - 93,144,239
CIGNA Corporation common stock - - $ 40,474,993 40,474,993
Short-term investments 4,735,829 1,177,259 389,591 6,302,679
------------- ------------- -------------- ---------------
Total investments 521,489,360 94,321,498 40,864,584 656,675,442
Investment income receivable - - 525,321 525,321
Employers' contributions receivable, net 1,810,453 481,768 156,101 2,448,322
Interfund transfers receivable (payable) 2,538,717 (476,776) (2,061,941) -
------------- ------------- -------------- ---------------
Net assets available for benefits $ 525,838,530 $ 94,326,490 $ 39,484,065 $ 659,649,085
============= ============= ============== ===============
</TABLE>
-9-
11-K-13
<PAGE> 14
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 4 - Investments (continued)
An analysis of the changes in net assets available for benefits by investment
fund for the years ended December 31, 1993 and 1992 is presented below.
<TABLE>
<CAPTION>
FIXED GROWTH & FIDELITY ADVISOR
INCOME FUND INCOME FUND GROWTH
(FORMERLY (FORMERLY OPPORTUNITIES
YEAR ENDED DECEMBER 31, 1993 GUARANTEED FUND) VARIABLE FUND) FUND
- - - ---------------------------------------------------- ---------------- --------------- -----------------
<S> <C> <C> <C>
Investment income
Interest $ 47,641,558 $ 27,525 $ 5,215
Dividends - - -
Realized gains on sale of CIGNA stock - - -
Unrealized depreciation in CIGNA stock - - -
Net investment gain (loss) from separate accounts - 3,012,364 1,486,719
-------------- ------------ --------------
Total investment income 47,641,558 3,039,889 1,491,934
-------------- ------------ --------------
Contributions
Employees' contributions 49,460,336 12,488,533 2,841,717
Employers' contributions
(net of forfeitures of $ 797,184) 19,720,780 5,281,413 1,113,049
Rollover contributions 1,102,943 60,568 466,038
-------------- ------------ --------------
Total contributions 70,284,059 17,830,514 4,420,804
-------------- ------------ --------------
Loan principal repayments 1,344,969 245,862 173,769
Loan interest received - allocated 245,217 48,404 33,756
Loans issued (18,192,289) (1,636,386) (836,808)
Withdrawals and distributions (36,406,714) (6,173,969) (96,665)
Commission expense - - -
Interfund transfers (13,478,580) (29,634,084) 45,644,843
-------------- ------------ --------------
Net increase (decrease) 51,438,220 (16,279,770) 50,831,633
Transfers from other plans 195,470,522 21,239,403 4,742,918
Net assets available for benefits
Beginning of year 525,838,530 94,326,490 -
-------------- ------------ --------------
End of year $ 772,747,272 $ 99,286,123 $ 55,574,551
============== ============ ==============
</TABLE>
<TABLE>
<CAPTION>
STOCK MARKET CIGNA PARTICIPANT
YEAR ENDED DECEMBER 31, 1993 INDEX FUND STOCK FUND LOANS TOTAL
- - - ------------------------------------------------------- ------------- ------------- ------------------ --------------------
<S> <C> <C> <C> <C>
Investment income
Interest $ 1,231 $ 8,626 $ 351,155 $ 48,035,310
Dividends - 2,030,134 - 2,030,134
Realized gains on sale of CIGNA stock - 3,580,539 - 3,580,539
Unrealized depreciation in CIGNA stock - (871,194) - (871,194)
Net investment gain (loss) from separate accounts (300,720) - - 4,198,363
------------ ------------- ----------------- --------------------
Total investment income (299,489) 4,748,105 351,155 56,973,152
------------ ------------- ----------------- --------------------
Contributions
Employees' contributions 542,498 4,055,861 - 69,388,945
Employers' contributions
(net of forfeitures of $ 797,184) 212,217 1,704,439 - 28,031,898
Rollover contributions 292,354 25,325 - 1,947,228
------------ ------------- ----------------- --------------------
Total contributions 1,047,069 5,785,625 - 99,368,071
------------ ------------- ----------------- --------------------
Loan principal repayments 21,794 100,602 (1,886,996) -
Loan interest received - allocated 4,619 19,159 (351,155) -
Loans issued (81,681) (715,359) 21,462,523 -
Withdrawals and distributions (36,894) (2,326,498) (119,620) (45,160,360)
Commission expense - (10,712) - (10,712)
Interfund transfers 6,491,661 (9,023,840) - -
------------ ------------- ----------------- --------------------
Net increase (decrease) 7,147,079 (1,422,918) 19,455,907 111,170,151
Transfers from other plans 11,386,734 5,451,315 2,280,766 240,571,658
Net assets available for benefits
Beginning of year - 39,484,065 - 659,649,085
------------ ------------- ----------------- --------------------
End of year $ 18,533,813 $ 43,512,462 $ 21,736,673 $ 1,011,390,894
============ ============= ================= ====================
</TABLE>
-10-
11-K-14
<PAGE> 15
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 4 - Investments (continued)
<TABLE>
<CAPTION>
GUARANTEED VARIABLE CIGNA
YEAR ENDED DECEMBER 31, 1992 FUND FUND STOCK FUND TOTAL
- - - ----------------------------------------------- -------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
Investment income
Interest $ 38,944,086 $ 21,989 $ 17,600 $ 38,983,675
Dividends - - 2,042,368 2,042,368
Realized gains on sale of CIGNA stock - - 147,141 147,141
Unrealized depreciation in CIGNA stock - - (1,501,910) (1,501,910)
Net investment gain from separate accounts - 3,598,550 - 3,598,550
------------- ------------- -------------- ---------------
Total investment income 38,944,086 3,620,539 705,199 43,269,824
------------- ------------- -------------- ---------------
Contributions
Employees' contributions 49,192,421 12,608,262 3,939,360 65,740,043
Employers' contributions
(net of forfeitures of $ 429,800) 20,383,383 5,350,362 1,678,471 27,412,216
------------- ------------- -------------- ---------------
Total contributions 69,575,804 17,958,624 5,617,831 93,152,259
Withdrawals and distributions (37,783,252) (6,331,473) (2,846,898) (46,961,623)
Interfund transfers 3,361,755 930,371 (4,292,126) -
------------- ------------- -------------- ---------------
Net increase (decrease) 74,098,393 16,178,061 (815,994) 89,460,460
Net assets available for benefits
Beginning of year 451,740,137 78,148,429 40,300,059 570,188,625
------------- ------------- -------------- ---------------
End of year $ 525,838,530 $ 94,326,490 $ 39,484,065 $ 659,649,085
============= ============= ============== ===============
</TABLE>
-11-
11-K-15
<PAGE> 16
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - INCOME TAX STATUS AND CONSEQUENCES
Internal Revenue Service determination letters have been received for the Plan
and all Plan amendments through December 30, 1985, indicating the Plan's
qualified status under Internal Revenue Code (IRC) Sections 401(a), 401(k) and
501(a). The Plan has been amended since receiving the determination letters.
However, 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. Prior to 1993, a portion of CGLIC's administrative costs
were paid by CIGNA. The investment results of the contracts with Equitable are
net of investment management fees and expenses charged by the Equitable.
Beginning May 1, 1993 brokers commissions resulting from buying or selling
stock in the CIGNA Stock Fund are paid out of the accounts of participants.
Prior to that date commissions were paid by CIGNA. 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.
- 12 -
11-K-16
<PAGE> 17
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 8 - PLAN MERGERS
During 1993 assets totaling $240,571,658 were transferred into the Plan from
several separate CIGNA related benefit plans in order to merge the plans. The
merged plans, dates of merger and the net assets transferred into SIP were as
follows:
<TABLE>
<S> <C>
EQUICOR Retirement Savings Plan (December 31, 1993) $ 115,135,932
Connecticut General Employees Profit Sharing Plan:
Profit Sharing Plan portion (July 1, 1993) 88,455,514
Voluntary Investment Plan portion (October 1, 1993) 12,037,298
Supplemental Retirement Account Plans (December 31, 1993) 17,850,321
Connecticut General Career Agents Deferred
Compensation Plan (October 1, 1993) 3,460,058
M.C.C. Companies, Inc. Retirement Savings Plan (October 1, 1993) 2,022,528
Total Health Employee Investment Plan (October 1, 1993) 772,809
CIGNA Dental Health, Inc. 401(k) Savings Plan (October 1, 1993) 594,157
CIGNA Healthplan of Southern California Union
Employees Profit Sharing Plan (October 1, 1993) 243,041
------------
$ 240,571,658
============
</TABLE>
- 13 -
11-K-17
<PAGE> 18
SUPPLEMENTAL SCHEDULES
11-K-18
<PAGE> 19
SCHEDULE I
SAVINGS AND INVESTMENT PLUS PLAN
ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1993
<TABLE>
<CAPTION>
Face Amount,
Shares or Units Cost Market Value
--------------- ------------- -------------
<S> <C> <C> <C>
Fixed Income Fund:
CGLIC fixed annuity contract 737,360,747 $ 737,360,747 $ 737,360,747
Equitable guaranteed investment
contracts 35,386,525 35,386,525 35,386,525
Growth and Income Fund 9,305,835 97,073,116 99,286,123
Fidelity Advisor Growth Opportunities
Fund 1,830,601 53,751,829 55,574,551
CIGNA Stock Fund:
CIGNA Corporation common stock 680,847 35,079,945 42,723,149
Short-term investments 274,523 274,523 274,523
Stock Market Index Fund 810,453 16,670,660 18,533,813
Participant Loans 21,736,673
-------------
Total assets held for investment $ 1,010,876,104
=============
</TABLE>
- 15 -
11-K-19
<PAGE> 20
SCHEDULE II
SAVINGS AND INVESTMENT PLUS PLAN
PARTY-IN-INTEREST TRANSACTIONS
YEAR ENDED DECEMBER 31, 1993
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.
- 16 -
11-K-20
<PAGE> 21
SCHEDULE III
SAVINGS AND INVESTMENT PLUS PLAN
REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1993
(Transactions with the same person or of the same issue aggregating
5% or more of the current value of Plan assets.)
<TABLE>
<CAPTION>
----------------- Sales -------------------
Party Involved Description of Asset Purchases Proceeds Cost Gain (Loss)
- - - --------------------------- ----------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Connecticut General Life
Insurance Company Fixed Annuity Contract $71,874,244 $68,052,784 $68,052,784 -
Connecticut General Life
Insurance Company Separate Account 3 - 94,326,490 58,026,371 $36,300,119
Connecticut General Life
Insurance Company Separate Account 9V 112,478,795 37,444,440 36,381,637 1,062,803
Connecticut General Life
Insurance Company Separate Account 55A 50,273,173 933,474 876,119 57,355
</TABLE>
- 17 -
11-K-21
<PAGE> 22
SCHEDULE IV
SAVINGS AND INVESTMENT PLUS PLAN
RECONCILIATION OF FORM 5500 TO FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Form 5500 Financial Statements
--------- --------------------
<S> <C> <C>
Interest and dividends $ 50,065,444 $ 50,065,444
Net gain on sale of assets (A) 972,709 3,580,539
Unrealized appreciation (depreciation) of assets (A) 1,736,636 (871,194)
Net investment gain from separate accounts 4,198,363 4,198,363
Contributions 99,368,071 99,368,071
Expenses (10,712) (10,712)
Withdrawals (B) (41,513,822) (45,160,360)
------------- -------------
Net increase 114,816,689 111,170,151
Transfers from other plans 240,571,658 240,571,658
Net assets available for benefits:
Beginning of year (B) 656,002,547 659,649,085
------------- -------------
End of year $ 1,011,390,894 $ 1,011,390,894
============= =============
</TABLE>
(A) Form 5500 reporting requires that realized and unrealized investment gains
and losses be determined separately based on revalued cost - that is, the
current value of the assets at the beginning of the plan year, as carried
forward from the end of the prior year - or historical cost if the investment
was acquired since the beginning of the plan year.
(B) In addition, Form 5500 reporting requires that benefits incurred but not
paid be recognized at the reporting date of the Plan's net assets. However, in
order to comply with guidance for accounting and disclosure by employee benefit
plans, benefit obligations are recognized on a paid basis for financial
statement purposes. There were no such benefit obligations incurred but not
paid as of December 31, 1993.
- 18 -
11-K-22
<PAGE> 23
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 28, 1994 By: /s/DAVID W. DURHAM
--------------------
David Durham
Plan Administrator
11-K-23
<PAGE> 24
Index to Exhibits
<TABLE>
<CAPTION>
Method of
Number Description Filing
------ ----------- --------
<S> <C> <C>
23.1 Consent of Filed herewith
Independent
Accountants
</TABLE>
-E-1-
<PAGE> 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 27, 1994, appearing on page 11-K-5 of the Annual Report of CIGNA
Corporation's Savings and Investment Plus Plan on Form 11-K for the fiscal year
ended December 31, 1993.
/s/PRICE WATERHOUSE
Philadelphia, Pennsylvania
June 28, 1994
-E-2-
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