<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, 1994
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-20 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, 1994 and 1993
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 4-11
Supplemental Schedules:
Schedule I - Assets Held for Investment 13
Schedule II - Party-In-Interest Transactions 14
Schedule III - Reportable Transactions 15
Schedule IV - Loans in Default 16
</TABLE>
11-K-4
<PAGE> 5
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of CIGNA Corporation
and the Participants and Administrator of
the Savings and Investment Plus Plan
In our opinion, the accompanying statements of net assets available for
benefits and the related statements of changes in net assets available for
benefits present fairly, in all material respects, the net assets available for
benefits of the Savings and Investment Plus Plan at December 31, 1994 and 1993,
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 LLP
Price Waterhouse LLP
Philadelphia, Pennsylvania
June 26, 1995
11-K-5
<PAGE> 6
SAVINGS AND INVESTMENT PLUS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
1994 1993
---- ----
ASSETS (IN THOUSANDS)
<S> <C> <C>
Fixed Income Fund $ 818,488 $ 772,747
Fidelity Advisor Growth Opportunities Fund 108,529 55,575
Growth & Income Fund 53,126 99,286
CIGNA Stock Fund 51,128 43,512
Stock Market Index Fund 24,807 18,534
International Equity Fund 12,631 -
INVESCO Industrial Income Fund 5,928 -
INVESCO Total Return Fund 5,658 -
Participant Loans 34,235 21,737
---------------- ------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 1,114,530 $ 1,011,391
================ ==================
</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,
1994 1993
---- ----
INVESTMENT INCOME (IN THOUSANDS)
<S> <C> <C>
Interest from Fixed Income Fund and Participant Loans $ 50,422 $ 48,035
Dividends from CIGNA stock 2,216 2,030
Net increase in fair value of CIGNA stock 514 2,710
Net investment gain from separate accounts 798 4,198
---------------- -------------
Total investment income 53,950 56,973
---------------- -------------
CONTRIBUTIONS
Employees' contributions 70,791 69,389
Employers' contributions
(net of forfeitures of $485 in 1994; $797 in 1993) 29,088 28,032
Rollover contributions 4,638 1,947
---------------- -------------
Total contributions 104,517 99,368
---------------- -------------
WITHDRAWALS AND DISTRIBUTIONS (55,309) (45,160)
---------------- -------------
COMMISSION EXPENSE (19) (11)
---------------- -------------
NET INCREASE 103,139 111,170
TRANSFERS FROM OTHER PLANS - 240,572
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 1,011,391 659,649
---------------- -------------
End of year $ 1,114,530 $ 1,011,391
================ =============
</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 $150,000
and $235,840 in 1994 and 1993, 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 $9,240 and $8,994 in
1994 and 1993, respectively. To comply with anti-discrimination provisions,
tax-deferred contributions for highly compensated employees were effectively
limited to 5.6% and 5.9% of eligible earnings in 1994 and 1993, respectively.
CIGNA companies made matching contributions in an amount equal to 50% of the
first 6% of eligible earnings contributed by participants. These matching
contributions are referred to herein as "employer contributions."
Employee contributions, including related investment earnings, are fully vested
at all times. Employer contributions and related investment earnings vest 20%
for each year of vesting service. Beginning January 1, 1994 participants earn
a year of Vesting Service if they have 1,000 hours of service during the
calendar year period. Prior to January 1, 1994, twelve months of service,
whether consecutive or not, represented one year of service for vesting. Early
vesting rules may apply upon joining the Plan, if the participant was
previously employed by a CIGNA company or had an account in certain plans that
have since merged into SIP. These rules are described in detail in the SIP
Summary Plan Description and Prospectus. Employer contributions and related
investment earnings are fully vested upon an employee's attainment of age 65,
death or total and permanent disability. Full vesting would also occur if a
participating employing CIGNA company is sold and does not maintain a successor
plan, if CIGNA completely discontinues matching contributions or if the Plan is
terminated. Upon termination of a participant's employment, that portion of
employer contributions and related investment results which are not vested are
forfeited. Forfeited amounts are used to reduce future employer contributions.
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.
11-K-8
- 4 -
<PAGE> 9
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
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.
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 September 1, 1994, the Plan added three new investment fund options.
On that date the Plan also began to phase out one existing investment fund
option. Plan participants may elect to invest in any combination of seven
funds, and are permitted to transfer assets, subject to certain restrictions,
among the funds.
Fixed Income Fund - This fund consists of a group fixed annuity contract issued
by Connecticut General Life Insurance Company (CGLIC), a CIGNA subsidiary, and
effective December 31, 1993, as a result of a plan merger with the EQUICOR
Retirement Savings Plan, a group fixed annuity contract issued by 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 fund guarantees the
principal and accumulated interest of all monies deposited. An annual rate of
interest is declared in advance and subject to change. The fund's effective
annual yield during 1994 was 6.3%. In 1993 the CGLIC group fixed annuity
contract had an effective annual yield of 7.5%. In 1993 the annual yield of
the EQUICOR group fixed annuity contract was 8.14%. The income earned thereon
was included in the net assets merged into SIP at December 31, 1993.
Fidelity Advisor Growth Opportunities Fund - Contributions to this investment
option are invested in Separate Account 55A (SA-55A) of CGLIC. All the assets
of this pooled separate account are invested in the Fidelity Advisor Growth
Opportunities Fund, a mutual fund managed by Fidelity Investments (Fidelity).
The fund's objective is long-term capital growth. The Fidelity portfolio
consists primarily of common stocks or securities convertible into common
stocks.
Growth & Income Fund - Effective September 1, 1994, the Plan began to phase out
this fund as an investment option. No contributions or transfers were
permitted into this fund after September 30, 1994. In January 1995, the Growth
& Income Fund was eliminated from SIP. Any balances in the fund on the date of
its elimination from the Plan were transferred into the Fixed Income Fund.
Assets in this fund had been invested in Separate Account 9V (SA-9V) of CGLIC,
a pooled common stock fund. The investment focus of the Growth & Income Fund
was long-term growth of capital and a reasonable level of income.
CIGNA Stock Fund - The CIGNA Stock Fund is invested in shares of CIGNA common
stock. Such shares presently are purchased on the open market but may be
acquired directly from CIGNA. From time to time, a portion of CIGNA Stock Fund
assets may be invested in short-term investments.
Stock Market Index Fund - Contributions to this investment option are invested
in Separate Account B (SA-B) of CGLIC, a pooled common stock fund. The fund's
objective is to attempt to match the performance of the Standard & Poor's 500
Composite Stock Price Index.
International Equity Fund - This investment option, which became effective
September 1, 1994, invests in Separate Account I (SA-I) of CGLIC, a pooled
common stock fund. The fund's objective is to invest primarily in stocks of a
diversified group of non-U.S. companies that have the potential to provide
superior returns.
11-K-9
- 5 -
<PAGE> 10
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
INVESCO Industrial Income Fund - This investment option, which became effective
September 1, 1994, invests in Separate Account 55J (SA-55J) of CGLIC. All
assets of this pooled account are invested in the INVESCO Industrial Income
Fund, Inc., a mutual fund. The fund's objective is to invest in a broad range
of securities (primarily common stocks or securities convertible into common
stocks) which are intended to provide a relatively high yield and stable return
and, over a period of years, may also provide capital appreciation. Capital
growth potential is a secondary goal.
INVESCO Total Return Fund - This investment option, which became effective
September 1, 1994, invests in Separate Account 55K (SA-55K) of CGLIC. All
assets of this pooled account are invested in the INVESCO Total Return Fund, a
mutual fund. The fund's objective is a high return on investment through both
capital appreciation and current income. The fund invests in a combination of
equity securities (common stocks and, to a lesser extent, securities
convertible into common stocks) and fixed income securities (primarily
obligations of the U.S. government and government-backed agencies).
Mellon Bank (East) N.A., Philadelphia, Pennsylvania is the Trustee for the
Plan.
Contributions are received and allocated to the designated funds by CGLIC.
While contributions are pending allocation, they are invested in short-term
investments.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements have been prepared in conformity with generally
accepted accounting principles. Certain reclassifications have been made to
the 1993 financial statements to conform to the 1994 presentation.
Recent Accounting Pronouncement
In 1994, Statement of Position (SOP) 94-4, "Reporting of Investment Contracts
Held by Health and Welfare Benefit Plans and Defined-Contribution Pension
Plans," was issued by the American Institute of Certified Public Accountants.
SOP 94-4 requires defined contribution plans to report investment contracts
with fully benefit responsive features at contract value and other investment
contracts at fair value. Plan management has not yet determined the timing and
effect, if any, of adopting the SOP, which is required to be adopted by January
1, 1996 for investment contracts entered into before December 31, 1993.
Investments
The group fixed annuity contracts with CGLIC and the Equitable are stated at
contract value, which approximates fair value. Contract value represents the
aggregate amount on deposit, including accumulated interest. CIGNA common
stock is carried at market value, which is based upon quotations obtained from
national securities exchanges. Participation units in the separate accounts
are valued based on the fund's net asset value, which is based on the fair
value of the underlying assets of the fund. Short-term investments are carried
at cost, which approximates fair value.
Benefits
Benefits are recorded when paid.
11-K-10
- 6 -
<PAGE> 11
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Investment Income
Interest income is recorded on the accrual basis. Dividend income is recorded
on the ex-dividend date. Realized investment gains and losses are based on the
average cost of the investments sold. Investment transactions are recorded on
the trade date.
NOTE 3 - PARTICIPATION IN THE PLAN
Employees' contributions and employers' contributions (net of forfeitures) for
the years ended December 31, 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
EMPLOYERS'
EMPLOYEES' CONTRIBUTIONS
CONTRIBUTIONS (NET OF
(In thousands) AND ROLLOVERS FORFEITURES)
- ------------------------------------------------------------- --------------- ----------------
1994
----
<S> <C> <C>
CIGNA Corporation $ 3,667 $ 1,459
CIGNA Holdings, Inc. 25 11
CIGNA Dental Health, Inc. 358 144
CIGNA Healthplan, Inc. subsidiaries 7,951 2,985
CIGNA Information Services, Inc. 326 120
CIGNA Investments, Inc. 1,611 706
Connecticut General Life Insurance Company 23,363 9,038
ESIS, Inc. 85 36
INA Life Insurance Company of New York 128 54
Insurance Company of North America 27,140 10,251
Life Insurance Company of North America 2,183 935
MCC Behavioral Care, Inc. 1,648 597
Recovery Services International, Inc. 350 122
Ross-Loos Healthplan of California, Inc. 6,594 2,630
------- -------
$75,429 $29,088
====== ======
1993
----
CIGNA Corporation $ 3,554 $ 1,390
CIGNA Holdings, Inc. 18 7
CIGNA Dental Health, Inc. 347 145
CIGNA Healthplan, Inc. subsidiaries 6,937 2,711
CIGNA Information Services, Inc. 457 182
CIGNA Investments, Inc. 1,686 732
Connecticut General Life Insurance Company 21,438 8,484
ESIS, Inc. 48 22
INA Life Insurance Company of New York 104 40
Insurance Company of North America 26,717 10,280
Life Insurance Company of North America 1,952 831
MCC Behavioral Care, Inc. 1,508 544
Montgomery and Collins, Inc.* 187 71
Recovery Services International, Inc. 335 116
Ross-Loos Healthplan of California, Inc. 6,048 2,477
------ ------
$71,336 $28,032
====== ======
</TABLE>
* Company sold January 6, 1994.
- 7 - 11-K-11
<PAGE> 12
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - INVESTMENTS
An analysis of the changes in net assets available for benefits by investment
fund for the year ended December 31, 1994 is presented below.
<TABLE>
<CAPTION>
FIDELITY
ADVISOR
GROWTH
FIXED OPPORTUNITIES GROWTH & CIGNA STOCK MARKET
YEAR ENDED DECEMBER 31, 1994 INCOME FUND FUND INCOME FUND STOCK FUND INDEX FUND
- ----------------------------------------------- ----------- ------------- ----------- ---------- ------------
(In thousands)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 48,790 $ - $ - $ - $ -
Dividends - - - 2,216 -
Net increase in fair value of
CIGNA stock - - - 514 -
Net investment gain (loss) from
separate accounts - 1,144 (172) - 222
------------ ------------ ---------- ---------- ----------
Total investment income 48,790 1,144 (172) 2,730 222
------------ ------------ ---------- ---------- ----------
CONTRIBUTIONS
Employees' contributions 46,153 10,946 6,914 4,117 1,834
Employers' contributions
(net of forfeitures of $ 485) 19,056 4,372 2,924 1,680 743
Rollover contributions 2,070 1,371 433 302 400
------------ ------------ ---------- ---------- ----------
Total contributions 67,279 16,689 10,271 6,099 2,977
------------ ------------ ---------- ---------- ----------
LOAN PRINCIPAL REPAYMENTS 7,208 1,410 751 538 151
LOAN INTEREST RECEIVED - ALLOCATED 1,136 226 131 91 26
LOANS ISSUED (19,098) (1,923) (1,438) (933) (168)
WITHDRAWALS AND DISTRIBUTIONS (42,193) (2,965) (5,539) (2,837) (779)
COMMISSION EXPENSE - - - (19) -
INTERFUND TRANSFERS (17,381) 38,373 (50,164) 1,947 3,844
------------ ------------ ---------- ---------- ----------
NET INCREASE (DECREASE) 45,741 52,954 (46,160) 7,616 6,273
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 772,747 55,575 99,286 43,512 18,534
------------ ------------ ---------- ---------- ----------
End of year $ 818,488 $ 108,529 $ 53,126 $ 51,128 $ 24,807
============ ============ ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
INVESCO INVESCO
INTERNATIONAL INDUSTRIAL TOTAL PARTICIPANT
YEAR ENDED DECEMBER 31, 1994 EQUITY FUND INCOME FUND RETURN FUND LOANS TOTAL
- ----------------------------------------------- ----------- ------------- ----------- ----------- ------------
(In thousands)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ - $ - $ - $ 1,632 $ 50,422
Dividends - - - - 2,216
Net increase in fair value of
CIGNA stock - - - - 514
Net investment gain (loss) from
separate accounts (259) (130) (7) - 798
----------- ---------- ---------- --------- ----------
Total investment income (259) (130) (7) 1,632 53,950
----------- ---------- ---------- --------- ----------
CONTRIBUTIONS
Employees' contributions 474 208 145 - 70,791
Employers' contributions
(net of forfeitures of $ 485) 179 78 56 - 29,088
Rollover contributions 36 20 6 - 4,638
------------ ----------- ----------- ---------- ------------
Total contributions 689 306 207 - 104,517
------------ ----------- ----------- ---------- ------------
LOAN PRINCIPAL REPAYMENTS 78 33 27 (10,196) -
LOAN INTEREST RECEIVED - ALLOCATED 13 6 3 (1,632) -
LOANS ISSUED (49) (11) (10) 23,630 -
WITHDRAWALS AND DISTRIBUTIONS (58) (1) (1) (936) (55,309)
COMMISSION EXPENSE - - - - (19)
INTERFUND TRANSFERS 12,217 5,725 5,439 - -
------------ ----------- ----------- ---------- ------------
NET INCREASE (DECREASE) 12,631 5,928 5,658 12,498 103,139
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year - - - 21,737 1,011,391
------------ ----------- ----------- ---------- ------------
End of year $ 12,631 $ 5,928 $ 5,658 $ 34,235 $ 1,114,530
============ =========== =========== ========== ============
</TABLE>
-8- 11-K-12
<PAGE> 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, 1993 is presented below.
<TABLE>
<CAPTION>
FIDELITY ADVISOR
GROWTH
FIXED OPPORTUNITIES GROWTH & CIGNA
YEAR ENDED DECEMBER 31, 1993 INCOME FUND FUND INCOME FUND STOCK FUND
- ------------------------------------------------------ -------------- ---------------- ------------ -----------
(In thousands)
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 47,642 $ 5 $ 28 $ 8
Dividends - - - 2,030
Net increase in fair value of CIGNA stock - - - 2,710
Net investment gain (loss) from separate accounts - 1,487 3,012 -
-------------- ------------ ------------ -----------
Total investment income 47,642 1,492 3,040 4,748
-------------- ------------ ------------ -----------
CONTRIBUTIONS
Employees' contributions 49,460 2,842 12,488 4,056
Employers' contributions
(net of forfeitures of $ 797) 19,721 1,113 5,282 1,704
Rollover contributions 1,103 466 61 25
-------------- ------------ ------------ -----------
Total contributions 70,284 4,421 17,831 5,785
-------------- ------------ ------------ -----------
LOAN PRINCIPAL REPAYMENTS 1,344 174 246 101
LOAN INTEREST RECEIVED - ALLOCATED 245 34 48 19
LOANS ISSUED (18,192) (837) (1,636) (715)
WITHDRAWALS AND DISTRIBUTIONS (36,407) (97) (6,174) (2,326)
COMMISSION EXPENSE - - - (11)
INTERFUND TRANSFERS (13,479) 45,645 (29,634) (9,024)
-------------- ------------ ------------ -----------
NET INCREASE (DECREASE) 51,437 50,832 (16,279) (1,423)
TRANSFERS FROM OTHER PLANS 195,471 4,743 21,239 5,451
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 525,839 - 94,326 39,484
-------------- ------------ ------------ -----------
End of year $ 772,747 $ 55,575 $ 99,286 $ 43,512
============== ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
STOCK MARKET PARTICIPANT
YEAR ENDED DECEMBER 31, 1993 INDEX FUND LOANS TOTAL
- --------------------------------------------------------- ------------ ----------- ----------
(In thousands)
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 1 $ 351 $ 48,035
Dividends - - 2,030
Net increase in fair value of CIGNA stock - - 2,710
Net investment gain (loss) from separate accounts (301) - 4,198
----------- ------------ ------------
Total investment income (300) 351 56,973
----------- ------------ ------------
CONTRIBUTIONS
Employees' contributions 543 - 69,389
Employers' contributions
(net of forfeitures of $ 797) 212 - 28,032
Rollover contributions 292 - 1,947
----------- ------------ ------------
Total contributions 1,047 - 99,368
----------- ------------ ------------
LOAN PRINCIPAL REPAYMENTS 22 (1,887) -
LOAN INTEREST RECEIVED - ALLOCATED 5 (351) -
LOANS ISSUED (82) 21,462 -
WITHDRAWALS AND DISTRIBUTIONS (37) (119) (45,160)
COMMISSION EXPENSE - - (11)
INTERFUND TRANSFERS 6,492 - -
----------- ------------ ------------
NET INCREASE (DECREASE) 7,147 19,456 111,170
TRANSFERS FROM OTHER PLANS 11,387 2,281 240,572
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year - - 659,649
----------- ------------ ------------
End of year $ 18,534 $ 21,737 $ 1,011,391
=========== ============ ============
</TABLE>
- 9- 11-K-13
<PAGE> 14
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - INCOME TAX STATUS
Internal Revenue Service (IRS) determination letters have been received for the
Plan and all Plan amendments through December 30, 1985, indicating the Plan's
qualified status under Internal Revenue Code (IRC) Sections 401(a), 401(k) and
501(a). An amended Plan document, which included all Plan amendments adopted
through December 31, 1994 was filed with the IRS on March 31, 1995 with a
request for tax determination. Although a response has not yet been received,
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. The investment results of the group fixed annuity contract
with the 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 from the participants'
accounts. 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.
NOTE 8 - RELATED PARTY TRANSACTIONS
There are numerous transactions between the Plan and CIGNA and its affiliates
which, in the opinion of Plan management, are exempt from detailed reporting
under Title I of ERISA. Investments in CGLIC's separate accounts represent
investments for which CGLIC has fiduciary responsibility . The Fixed Income
Fund is a contract participating in the general account assets of CGLIC. CGLIC
is the Plan's recordkeeper.
11-K-14
- 10 -
<PAGE> 15
SAVINGS AND INVESTMENT PLUS PLAN NOTES
TO FINANCIAL STATEMENTS
NOTE 9 - 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>
<CAPTION>
(In thousands)
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
EQUICOR Retirement Savings Plan (December 31, 1993) $ 115,136
Connecticut General Employees Profit Sharing Plan:
Profit Sharing Plan portion (July 1, 1993) 88,456
Voluntary Investment Plan portion (October 1, 1993) 12,037
Supplemental Retirement Account Plans (December 31, 1993) 17,850
Connecticut General Career Agents Deferred
Compensation Plan (October 1, 1993) 3,460
M.C.C. Companies, Inc. Retirement Savings Plan (October 1, 1993) 2,023
Total Health Employee Investment Plan (October 1, 1993) 773
CIGNA Dental Health, Inc. 401(k) Savings Plan (October 1, 1993) 594
CIGNA Healthplan of Southern California Union
Employees Profit Sharing Plan (October 1, 1993) 243
--------------
$ 240,572
==============
</TABLE>
- 11 - 11-K-15
<PAGE> 16
SUPPLEMENTAL SCHEDULES
11-K-16
<PAGE> 17
SCHEDULE I
SAVINGS AND INVESTMENT PLUS PLAN
ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1994
<TABLE>
<CAPTION>
Shares or
Description Units Cost Market Value
- --------------------------------------------------- ----------- -------------- ------------------
(In thousands, except shares or units)
<S> <C> <C> <C>
Fixed Income Fund:
CGLIC group fixed annuity contract $ 797,217 $ 797,217
Equitable group fixed annuity contract 21,271 21,271
Fidelity Advisor Growth Opportunities Fund 3,480,868 106,892 108,529
Growth & Income Fund 5,014,451 52,664 53,126
CIGNA Stock Fund:
CIGNA Corporation common stock 790,255 44,763 50,280
Short-term investments 252 252
Stock Market Index Fund 1,072,287 23,168 24,807
International Equity Fund 212,576 12,890 12,631
INVESCO Industrial Income Fund 505,777 6,058 5,928
INVESCO Total Return Fund 298,134 5,665 5,658
Participant Loans 34,235
----------
Assets held for investment 1,113,934
Investment income receivable (CIGNA Stock Fund) 596
-----------
Net assets available for benefits $ 1,114,530
=========
</TABLE>
- 13 - 11-K-17
<PAGE> 18
SCHEDULE II
SAVINGS AND INVESTMENT PLUS PLAN
PARTY-IN-INTEREST TRANSACTIONS
YEAR ENDED DECEMBER 31, 1994
A schedule of party-in-interest transactions has not been prepared because
there were no party-in-interest transactions which are prohibited by ERISA and
for which there is no statutory or administrative exemption.
11-K-18
- 14 -
<PAGE> 19
SCHEDULE III
SAVINGS AND INVESTMENT PLUS PLAN
REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1994
(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
- ------------------------- ------------------------ --------------- ------------- --------------- -----------
(In thousands)
<S> <C> <C> <C> <C> <C>
Connecticut General Life Fixed Income Fund
Insurance Company $ 118,719 $ 104,816 $ 104,816 -
Connecticut General Life Growth & Income
Insurance Company Fund (SA-9V) 13,385 59,373 57,794 $ 1,579
Connecticut General Life Fidelity Advisor Growth
Insurance Company Opportunities Fund
(SA-55A) 72,367 20,557 19,226 1,331
</TABLE>
- 15 - 11-K-19
<PAGE> 20
SCHEDULE IV
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF LOANS IN DEFAULT
DECEMBER 31, 1994
<TABLE>
<CAPTION>
Original Unpaid
Amounts of Balances at Amounts
Obligor Loans Amounts Received During 1994 End of Year Overdue
- ---------------- ------------- ------------------------------ --------------- -------------
(In thousands)
Principal Interest
--------- --------
<S> <C> <C> <C> <C> <C>
various $ 159 $ 12 $ 2 $ 142 $ 142
</TABLE>
- 16 - 11-K-20
<PAGE> 21
Exhibits
Exhibits are listed in the Index to Exhibits appearing on page E-1.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
SAVINGS AND INVESTMENT PLUS PLAN
Date: June 27, 1995 By: /s/DAVID DURHAM
------------------
David Durham
Plan Administrator
11-K-21
<PAGE> 22
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 26, 1995, appearing on page 11-K-5 of this Form 11-K.
/s/PRICE WATERHOUSE
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
June 27, 1995
E-2
