<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, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _____ to _____
Commission File Number 1-8323
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
CIGNA Corporation
Savings and Investment Plus Plan
Two Liberty Place, 17th Floor
1601 Chestnut Street
P.O. Box 7716
Philadelphia, PA 19192-2172
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
CIGNA Corporation
One Liberty Place
1650 Market Street
Philadelphia, PA 19192-1550
<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-18 of this Annual
Report on Form 11-K.
11-K-2
<PAGE> 3
SAVINGS AND INVESTMENT PLUS
PLAN
FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULES
DECEMBER 31, 1996 AND 1995
11-K-3
<PAGE> 4
SAVINGS AND INVESTMENT PLUS PLAN
TABLE OF CONTENTS
Page
Report of Independent Accountants 1
Financial Statements
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4
Supplemental Schedules
Schedule of Assets Held for Investment Purposes 12
Schedule of Reportable Transactions 13
Schedule of Loans in Default 14
11-K-4
<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 (the Plan) at December 31, 1996 and
1995, and the changes in net assets available for benefits for the years then
ended, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of the Plan's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules are not
required as part of the basic financial statements but represent additional
information required by the Employee Retirement Income Security Act of 1974.
Such information has been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, is fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
/s/ Price Waterhouse LLP
Philadelphia, Pennsylvania
June 18, 1997
11-K-5
<PAGE> 6
SAVINGS AND INVESTMENT PLUS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
As of
December 31,
1996 1995
---------- ----------
(In thousands)
<S> <C> <C>
ASSETS
Investments, at fair value
Fixed Income Fund $ 891,281 $ 902,168
Fidelity Advisor Growth Opportunities Fund 227,302 188,393
CIGNA Stock Fund 113,215 81,392
Stock Market Index Fund 84,101 49,315
International Equity Fund 30,114 19,147
INVESCO Total Return Fund 22,967 16,140
Founders Growth Fund 13,362 --
Warburg Pincus Advisor Emerging Growth Fund 9,235 --
INVESCO Industrial Income Fund 8,666 14,173
Participant Loans 45,221 41,450
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $1,445,464 $1,312,178
========== ==========
</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>
For the Years Ended
December 31,
1996 1995
----------- -----------
(In thousands)
<S> <C> <C>
Investment income
Interest and dividends $ 64,426 $ 65,316
Net increase in fair value of CIGNA stock 27,248 31,253
Net investment gain from separate accounts 54,882 57,431
----------- -----------
Total investment income 146,556 154,000
----------- -----------
Contributions
Employees' contributions 71,741 74,836
Employer's contributions 28,882 30,428
Rollover contributions 4,461 6,497
----------- -----------
Total contributions 105,084 111,761
----------- -----------
Benefits Paid (77,382) (68,113)
----------- -----------
Transfers to other plans (40,972) --
----------- -----------
NET INCREASE 133,286 197,648
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 1,312,178 1,114,530
----------- -----------
End of year $ 1,445,464 $ 1,312,178
=========== ===========
</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 THE PLAN
Generally, all domestic employees of CIGNA Corporation (CIGNA) and its
participating subsidiaries who have completed at least one year of service are
eligible to participate in the Savings and Investment Plus Plan (SIP or the
Plan), a defined contribution plan. The following description of the Plan
provides general information only. A more complete explanation of the features
and benefits available under the Plan is contained in the SIP Summary Plan
Description and Prospectus.
Contributions
The Plan permits tax-deferred contributions to a maximum of 16% of a
participant's eligible earnings. Eligible earnings were limited to $150,000 in
both 1996 and 1995. Tax-deferred contributions are accomplished by means of an
employee's election, pursuant to Section 401(k) of the Internal Revenue Code, to
have an amount withheld by the employer from the employee's compensation, and
for the employer to remit to the employee's plan account an amount equal to such
withholding. Tax-deferred contributions are also referred to herein as "employee
contributions." Under the Internal Revenue Code, tax-deferred contributions were
limited to $9,500 and $9,240 in 1996 and 1995, respectively. To comply with
anti-discrimination provisions, tax-deferred contributions for highly
compensated employees were limited to 6.0% of eligible earnings in both 1996 and
1995. CIGNA companies made matching contributions in an amount equal to 50% of
the first 6% of eligible earnings contributed by participants. These matching
contributions are referred to herein as "employer contributions."
The Plan may accept rollover contributions. A rollover contribution to SIP
represents a distribution a participant receives from another
employer-sponsored, tax qualified, pension or profit sharing plan. Distributions
from other plans are subject to certain conditions to be eligible for rollover
into SIP.
Vesting
Employee contributions, including related investment earnings, are fully vested
at all times. Employer contributions and related investment earnings vest 20%
for each year of vesting service. Participants earn a year of vesting service if
they have 1,000 hours of service during the calendar year period. Early vesting
rules may apply upon joining the Plan if the participant was previously employed
by a CIGNA company or had an account in certain plans that have since merged
into SIP. Employer contributions and related investment earnings are fully
vested upon an employee's attainment of age 65, death or total and permanent
disability. Full vesting would also occur if a participating CIGNA company is
sold and does not maintain a successor plan, if CIGNA discontinues matching
contributions or if the Plan is terminated. Upon termination of a participant's
employment, that portion of employer contributions and related investment
earnings which are not vested are forfeited. Forfeited amounts are used to
reduce future employer contributions.
Loans
The Plan permits participants to borrow a portion of their account, subject to
certain limitations, at
- 4 - 11-K-8
<PAGE> 9
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
an annual rate of interest with a specified repayment period. The minimum amount
that can be borrowed is $1,000; the maximum total loan amount is the lesser of
$50,000 or 50% of the participant's vested account balance. A participant may
have no more than two outstanding SIP loans. Loan terms range from 12 to 60
months, or up to 120 months if the loan is used to buy or build a participant's
primary residence. Loan interest rates remain fixed during the term of the loan.
The loan is secured by the participant's SIP account balance. Generally, loan
repayments are made by payroll deduction. Both the interest and principal
portions of every repayment are allocated to the participant account according
to the investment election in effect at the time of the repayment. The interest
portion of every repayment is added to the participant's SIP account balance as
earnings. If a default occurs, the amount of the outstanding loan balance is
treated as a distribution to the participant. The defaulting participant is
subject to immediate taxation on the taxable portion of the defaulted amount,
including a possible 10% penalty tax.
Payment of Benefits
Participants may withdraw funds subject to the requirements of the Plan, and
such withdrawals may be subject to immediate taxation and a possible 10% penalty
tax.
On termination of employment due to death, disability, retirement or other
reasons, a participant may elect to receive either a lump-sum amount equal to
the value of the participant's vested interest in their account, monthly
installments for up to 30 years, an annuity, or a combination of these forms. To
the extent amounts are invested in the CIGNA Stock Fund, a participant may elect
to receive such amounts in CIGNA common stock.
Transfers to Other Plans
In accordance with agreements related to the disposition of certain operations
of CIGNA, the account balances of certain participants were transferred to other
plans during 1996.
Investments
During 1996, the Plan added two new investment options and began to phase out
one existing investment option. Plan participants may elect to invest in any
combination of eight funds, and are permitted to transfer assets, subject to
certain restrictions, among the funds.
Fixed Income Fund - Contributions to this investment option are invested in a
group fixed annuity contract issued by Connecticut General Life Insurance
Company (CGLIC), a CIGNA subsidiary. CGLIC guarantees the principal and
accumulated interest of all monies deposited. An annual rate of interest is
declared in advance and subject to change.
Fidelity Advisor Growth Opportunities Fund - Contributions to this investment
option are invested in Separate Account 55A (SA-55A) of CGLIC. All the assets of
this pooled account are invested in the Fidelity Advisor Growth Opportunities
Fund, a mutual fund. The fund's objective is long-term capital growth. The
fund's portfolio consists primarily of common stocks or securities convertible
into common stocks.
- 5 - 11-K-9
<PAGE> 10
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
CIGNA Stock Fund - Contributions to this investment option are invested in
shares of CIGNA common stock. Such shares presently are purchased on the open
market but may be acquired directly from CIGNA. From time to time, a portion of
CIGNA Stock Fund assets may be invested in short-term investments.
Stock Market Index Fund - Contributions to this investment option are invested
in Separate Account B (SA-B) of CGLIC, a pooled common stock fund. The fund's
objective is to match the performance of the Standard & Poor's 500 Composite
Stock Price Index.
International Equity Fund - Contributions to this investment option are invested
in Separate Account I (SA-I) of CGLIC, a pooled common stock fund. The fund's
objective is to invest primarily in stocks of a diversified group of non-U.S.
companies that have the potential to provide superior returns.
INVESCO Total Return Fund - Contributions to this investment option are invested
in Separate Account 55K (SA-55K) of CGLIC. All the assets of this pooled account
are invested in the INVESCO Total Return Fund, a mutual fund. The fund's
objective is to provide a high return on investment through both capital
appreciation and current income. The fund's portfolio consists of equity
securities (common stocks and, to a lesser extent, securities convertible into
common stocks) and fixed income securities (primarily obligations of the U.S.
government and government-backed agencies).
Founders Growth Fund - Contributions to this investment option began November
15, 1996, and are invested in Separate Account 55JR (SA-55JR) of CGLIC. All the
assets of this pooled account are invested in the Founders Growth Fund, a mutual
fund. The fund's objective is long-term capital growth. The fund's portfolio
consists primarily of common stocks of well-established, high-quality, growth
companies.
Warburg Pincus Advisor Emerging Growth Fund - Contributions to this investment
option began November 15, 1996, and are invested in Separate Account 55G
(SA-55G) of CGLIC. All the assets of this pooled account are invested in the
Warburg Pincus Advisor Emerging Growth Fund, a mutual fund. The fund's objective
is maximum capital appreciation. The fund's portfolio consists primarily of
common stocks or warrants of small to medium-sized domestic companies with
emerging or renewed growth potential.
INVESCO Industrial Income Fund - At December 31, 1996, this investment option
was being phased out of the Plan. This fund was eliminated from the Plan on
January 31, 1997. Contributions to this investment option were invested in
Separate Account 55J (SA-55J) of CGLIC. All the assets of this pooled account
are invested in the INVESCO Industrial Income Fund, a mutual fund. The fund's
objective is to provide a high level of current income. Capital growth potential
is a secondary goal.
Growth & Income Fund - In January 1995, the Growth & Income Fund was eliminated
from SIP. The assets in this fund were invested in Separate Account 9V (SA-9V)
of CGLIC, a pooled common stock fund.
- 6 - 11-K-10
<PAGE> 11
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Plan Termination
CIGNA intends to continue the Plan indefinitely, but reserves the right to
discontinue contributions or terminate the Plan in whole or in part at any time.
If contributions are discontinued or the Plan is terminated, affected
participants will become fully vested. Upon Plan termination, net assets of the
Plan will be distributed in the manner CIGNA elects and in accordance with the
Employee Retirement Income Security Act of 1974 (ERISA) and its related
regulations.
Plan Trustee
Mellon Bank (East) N.A., Philadelphia, Pennsylvania is the Trustee for the Plan.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements have been prepared in conformity with generally
accepted accounting principles.
Valuation of Investments
Plan investments are reported at fair value. The fair value of the Fixed Income
Fund is equivalent to its contract value. Contract value represents the
aggregate amount on deposit, including accumulated interest. The fair value of
CIGNA common stock is based upon quoted market price. Fair value of CGLIC's
separate accounts is measured by the net unit value, which is based on the fair
value of the underlying assets of the account. Net investment gain from separate
accounts results from the increase in net unit value.
Payment of Benefits
Benefits are recorded when paid.
Plan Expenses
The investment results of all funds except the CIGNA Stock Fund are net of
management fees, investment expenses, risk charges and administrative costs
charged by CGLIC. Brokers' commissions resulting from buying or selling stock in
the CIGNA Stock Fund are paid from the participants' accounts and have been
reflected as a reduction of the Stock Fund's investment income in these
financial statements. Other costs associated with the operation of the Plan,
including trustee and legal fees, are paid by CIGNA.
- 7 - 11-K-11
<PAGE> 12
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 3 - INVESTMENTS
An analysis of the changes in net assets available for benefits by investment
fund for the year ended December 31, 1996 is presented below.
<TABLE>
<CAPTION>
FIDELITY
ADVISOR
GROWTH
FIXED OPPORTUNITIES CIGNA STOCK MARKET INTERNATIONAL
YEAR ENDED DECEMBER 31, 1996 INCOME FUND FUND STOCK FUND INDEX FUND EQUITY FUND
- --------------------------------------------------- ----------- ----------- ----------- ----------- -----------
(In thousands)
<S> <C> <C> <C> <C> <C>
Investment income
Interest and dividends $ 58,907 $ -- $ 2,610 $ -- $ --
Net increase in fair value of CIGNA stock -- -- 27,248 -- --
Net investment gain (loss) from separate accounts -- 34,381 -- 13,433 1,785
----------- ----------- ----------- ----------- -----------
Total investment income 58,907 34,381 29,858 13,433 1,785
----------- ----------- ----------- ----------- -----------
Contributions
Employees' contributions 34,990 17,605 6,814 5,265 2,908
Employer's contributions 14,415 6,966 2,712 2,040 1,148
Rollover contributions 1,358 1,189 710 564 197
----------- ----------- ----------- ----------- -----------
Total contributions 50,763 25,760 10,236 7,869 4,253
----------- ----------- ----------- ----------- -----------
Loan principal repayments 11,233 3,589 1,598 952 596
Loan interest received - allocated 1,717 563 264 151 97
Loans issued (19,073) (3,670) (1,908) (996) (512)
Benefits paid (55,883) (9,158) (5,184) (2,611) (1,037)
Transfers to other plans (27,419) (6,684) (1,673) (1,543) (581)
Interfund transfers (31,132) (5,872) (1,368) 17,531 6,366
----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) (10,887) 38,909 31,823 34,786 10,967
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 902,168 188,393 81,392 49,315 19,147
----------- ----------- ----------- ----------- -----------
End of year $ 891,281 $ 227,302 $ 113,215 $ 84,101 $ 30,114
=========== =========== =========== =========== ===========
<CAPTION>
WARBURG
PINCUS
INVESCO FOUNDERS ADVISOR INVESCO
TOTAL GROWTH EMERGING INDUSTRIAL PARTICIPANT
YEAR ENDED DECEMBER 31, 1996 RETURN FUND FUND GROWTH FUND INCOME FUND LOANS
- --------------------------------------------------- ----------- ----------- ----------- ----------- -----------
(In thousands)
<S> <C> <C> <C> <C> <C>
Investment income
Interest and dividends $ -- $ -- $ -- $ -- $ 2,909
Net increase in fair value of CIGNA stock -- -- -- -- --
Net investment gain (loss) from separate accounts 2,510 (213) 147 2,839 --
----------- ----------- ----------- ----------- -----------
Total investment income 2,510 (213) 147 2,839 2,909
----------- ----------- ----------- ----------- -----------
Contributions
Employees' contributions 1,976 117 89 1,977 --
Employer's contributions 764 43 33 761 --
Rollover contributions 202 35 13 193 --
----------- ----------- ----------- ----------- -----------
Total contributions 2,942 195 135 2,931 --
----------- ----------- ----------- ----------- -----------
Loan principal repayments 367 30 28 335 (18,728)
Loan interest received - allocated 60 5 3 49 (2,909)
Loans issued (334) (7) (1) (305) 26,806
Benefits paid (926) (6) (5) (559) (2,013)
Transfers to other plans (455) -- -- (323) (2,294)
Interfund transfers 2,663 13,358 8,928 (10,474) --
----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) 6,827 13,362 9,235 (5,507) 3,771
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 16,140 -- -- 14,173 41,450
----------- ----------- ----------- ----------- -----------
End of year $ 22,967 $ 13,362 $ 9,235 $ 8,666 $ 45,221
=========== =========== =========== =========== ===========
<CAPTION>
YEAR ENDED DECEMBER 31, 1996 TOTAL
- --------------------------------------------------- -----------
(In thousands)
<S> <C>
Investment income
Interest and dividends $ 64,426
Net increase in fair value of CIGNA stock 27,248
Net investment gain (loss) from separate accounts 54,882
-----------
Total investment income 146,556
-----------
Contributions
Employees' contributions 71,741
Employer's contributions 28,882
Rollover contributions 4,461
-----------
Total contributions 105,084
-----------
Loan principal repayments --
Loan interest received - allocated --
Loans issued --
Benefits paid (77,382)
Transfers to other plans (40,972)
Interfund transfers --
-----------
NET INCREASE (DECREASE) 133,286
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 1,312,178
-----------
End of year $ 1,445,464
===========
</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, 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
Employer's contributions 18,879 6,155 2,152 1,206 971
Rollover contributions 3,178 1,682 439 484 233
----------- ----------- ----------- ----------- -----------
Total contributions 68,004 23,179 7,949 4,727 3,640
----------- ----------- ----------- ----------- -----------
Loan principal repayments 10,686 2,456 963 393 378
Loan interest received - allocated 1,646 401 159 67 63
Loans issued (19,855) (2,691) (1,104) (401) (312)
Benefits paid (54,661) (4,780) (3,895) (1,550) (500)
Interfund transfers 17,319 21,075 (7,435) 10,514 2,257
----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) 83,680 79,864 30,264 24,508 6,516
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 818,488 108,529 51,128 24,807 12,631
----------- ----------- ----------- ----------- -----------
End of year $ 902,168 $ 188,393 $ 81,392 $ 49,315 $ 19,147
=========== =========== =========== =========== ===========
<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
Employer's contributions 496 569 -- -- 30,428
Rollover contributions 248 233 -- -- 6,497
----------- ----------- ----------- ----------- -----------
Total contributions 2,007 2,255 -- -- 111,761
----------- ----------- ----------- ----------- -----------
Loan principal repayments 208 203 -- (15,287) --
Loan interest received - allocated 34 31 -- (2,401) --
Loans issued (139) (135) (4) 24,641 --
Benefits paid (226) (330) (32) (2,139) (68,113)
Interfund transfers 6,129 3,947 (53,806) -- --
----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) 10,482 8,245 (53,126) 7,215 197,648
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 5,658 5,928 53,126 34,235 1,114,530
----------- ----------- ----------- ----------- -----------
End of year $ 16,140 $ 14,173 $ -- $ 41,450 $ 1,312,178
=========== =========== =========== =========== ===========
</TABLE>
- 9 - 11-K-13
<PAGE> 14
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - TAX STATUS
A favorable determination letter was received from the Internal Revenue Service
(IRS) for the Plan and all Plan amendments through December 31, 1994, indicating
that the Plan was in compliance with the applicable requirements of the Internal
Revenue Code (IRC) and, therefore, was tax exempt. The Plan has been amended
since receiving the determination letter. However, management believes the Plan
has been in compliance with the applicable requirements of the IRC and,
therefore, continues to be tax exempt.
NOTE 5 - RELATED PARTY TRANSACTIONS
There are numerous transactions between the Plan and CIGNA and its affiliates
which, in the opinion of Plan management, are exempt from detailed reporting
under Title I of ERISA. Investments in CGLIC's separate accounts represent
investments for which CGLIC has fiduciary responsibility. Investments in the
Fixed Income Fund represents participation in the general account assets of
CGLIC. CGLIC is the Plan's recordkeeper.
- 10 - 11-K-14
<PAGE> 15
SUPPLEMENTAL SCHEDULES
11-K-15
<PAGE> 16
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1996
(Dollars in thousands)
<TABLE>
<CAPTION>
Current
Identity of Party Description Cost Value
- ----------------- ----------------------------------------------- -------- ----------
<S> <C> <C> <C>
CGLIC Fixed Income Fund $891,281 $ 891,281
CGLIC Fidelity Advisor Growth Opportunities Fund 166,065 227,302
CIGNA CIGNA Stock Fund
CIGNA common stock-823,163 shares 66,776 112,465
Short-term investments 92 92
CGLIC Stock Market Index Fund 63,592 84,101
CGLIC International Equity Fund 28,015 30,114
CGLIC INVESCO Total Return Fund 19,008 22,967
CGLIC Founders Growth Fund 13,575 13,362
CGLIC Warburg Pincus Advisor Emerging Growth Fund 9,088 9,235
CGLIC INVESCO Industrial Income Fund 7,001 8,666
CGLIC Participant Loans
(5.1% to 12.95%; maturity 1997-2006) 45,221
----------
Total assets held for investment purposes 1,444,806
Investment income receivable (CIGNA Stock Fund) 658
----------
Net assets available for benefits $1,445,464
==========
</TABLE>
-12- 11-K-16
<PAGE> 17
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
(In thousands)
<TABLE>
<CAPTION>
Sales
--------------------------------
Party Involved Description of Asset Purchases Proceeds Cost Net Gain
- -------------- ----------------------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
CGLIC Fixed Income Fund $111,449 $181,243 $181,243 $ --
CGLIC Fidelity Advisor Growth
Opportunities Fund 60,396 55,868 44,303 11,565
</TABLE>
-13- 11-K-17
<PAGE> 18
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF LOANS IN DEFAULT
AS OF DECEMBER 31, 1996
(In thousands)
<TABLE>
<CAPTION>
Original Amounts Received Unpaid
Amounts of During 1996 Balances at Amounts
Obligor Loans Principal Interest End of Year Overdue
- ------- ---------- --------- -------- ----------- -------
<S> <C> <C> <C> <C> <C>
Various $536 $8 $2 $281 $281
</TABLE>
- 14 - 11-K-18
<PAGE> 19
Exhibits
Exhibits are listed in the Index to Exhibits appearing on page E-1.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
SAVINGS AND INVESTMENT PLUS PLAN
Date: June 30, 1997 By: /s/ Stewart M. Beltz
---------------------------
Stewart M. Beltz
Plan Administrator
11-K-19
<PAGE> 20
Index to Exhibits
Method of
Number Description Filing
- ------ ----------- ------
23.1 Consent of Filed
Independent herewith
Accountants
-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 18, 1997, appearing on page 11-K-5 of this Form 11-K.
/s/ PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
June 25, 1997
-E-2-
