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