2010 SUMMARY ANNUAL REPORT December 2011

Transcription

1 2010 SUMMARY ANNUAL REPORT December 2011 This information is provided as a summary of the 2010 plan year Annual Reports, which have been filed with the Internal Revenue Service (IRS) as required by the Employee Retirement Income Security Act of 1974 (ERISA). The format of these reports follows the requirements prescribed by the U.S. Department of Labor. It is intended to provide a brief description of the financial condition of the benefit plans of Cigna Corporation and its Affiliated Participating Companies. It does not include pension plan information, which is now included in the Annual Funding Notice distributed in April. The information in this Summary Annual Report is based on 2010 financial data. 1

2 CIGNA 401(k) PLAN This is a summary of the annual report for Cigna 401(k) Plan, EIN , Plan No. 002, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by insurance and through a trust fund. Plan expenses were $162,583,047. These expenses included $1,333,300 in administrative expenses, $161,207,982 in benefits paid to participants and beneficiaries, and $41,765 in other expenses. A total of 42,493 persons were participants in or beneficiaries of the plan at the end of the plan year. The value of plan assets, after subtracting liabilities of the plan, was $2,707,402,529 as of December 31, 2010, compared to $2,442,867,570 as of January 1, During the plan year the plan experienced an increase in its net assets of $264,534,959. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $427,118,006, including employer contributions of $68,085,888, employee contributions of $119,854,668, rollover contributions of $11,042,198, realized losses of ($574,408) from the sale of assets and earnings from investments of $228,709,660. 2

3 CONNECTICUT GENERAL LIFE FIELD RETIREMENT PLAN This is a summary of the annual report for Connecticut General Life Field Retirement Plan, EIN , Plan No. 003, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided through insurance and through a trust fund. Plan expenses were $3,288,692. These expenses included $136 in administrative expenses, and $3,288,556 in benefits paid to participants and beneficiaries. A total of 717 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $54,754,153 as of December 31, 2010, compared to $52,488,480 as of January 01, During the plan year the plan experienced an increase in its net assets of $2,265,673. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $5,554,365, including earnings from investments of $5,554,164, and other income of $201. Minimum Funding Standards Enough money was contributed to the plan before it was frozen in 1997 to keep it funded in accordance with the minimum funding standards of ERISA. 3

4 INTRACORP 401(k) PERFORMANCE SHARING PLAN This is a summary of the annual report for Intracorp 401(k) Performance Sharing Plan, EIN , Plan No. 003, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided through insurance and through a trust fund. Plan expenses were $3,788,268. These expenses included $462 in administrative expenses, and $3,787,806 in benefits paid to participants and beneficiaries. A total of 1,281 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $64,051,476 as of December 31, 2010, compared to $62,458,492 as of January 1, During the plan year the plan experienced an increase in its net assets of $1,592,984. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $5,381,252, including realized losses of ($6,296) from the sale of assets, and earnings from investments of $5,387,548. 4

5 CIGNA LIFE, DISABILITY AND REIMBURSEMENT ACCOUNT PLAN This is a summary of the annual report of the Cigna Life, Disability and Reimbursement Account Plan, EIN , Plan No. 501, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Cigna Corporation and its subsidiaries have committed themselves to pay, through the plan trust, all claims incurred under the terms of the plan related to the Health Care and Dependent Care Flexible Spending Accounts. Insurance Information The plan has contracts with Connecticut General Life Insurance Company and Life Insurance Company of North America to pay life insurance claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2010 were $8,731,260. Because they are "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2010, the premiums paid under such "experiencerated" contracts were $8,117,163 and the total of all benefit claims paid under these contracts during the plan year was $9,571,885. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $30,249,642 as of December 31, 2010, compared to $32,704,197 as of January 1, During the plan year the plan experienced a decrease in its net assets of $2,454,555. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $21,035,416, including employer contributions of $6,260,509, employee contributions of $13,309,495, and earnings from investments of $1,465,412. Plan expenses were $23,489,971. These expenses included $23,489,971 in benefits paid to participants and beneficiaries. 5

6 LONG-TERM DISABILITY PLAN This is a summary of the annual report of the Long-Term Disability Plan, EIN , Plan No. 507, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has a contract with Life Insurance Company of North America to pay long-term disability claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2010 were $2,330,301. Because it is an experience-rated" contract, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2010, the premiums paid under such "experiencerated" contract were $2,330,301 and the total of all benefit claims paid under the contract during the plan year was $5,067,325. 6

7 CIGNA MEDICAL AND DENTAL PLAN This is a summary of the annual report of the Cigna Medical and Dental Plan, EIN , Plan No. 520, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information Cigna Corporation and its subsidiaries have committed themselves to pay all claims incurred under the terms of the plan, except those covered by insurance contracts described below. The plan has a contract with Connecticut General Life Insurance Company to pay certain health and dental claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2010 were $2,822,991. 7

8 UNIVERSAL LIFE INSURANCE PLAN This is a summary of the annual report of the Universal Life Insurance Plan, EIN , Plan No. 521, for the period January 1, 2010 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Insurance Information The plan has contracts with Connecticut General Life Insurance Company to pay life insurance claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2010 were $13,663,932. 8

9 YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report filed, or any part thereof, for any plans in which you participated during 2010, upon request. The items listed one to six below are included in the reports for the following plans: Cigna 401(k) Plan* Connecticut General Life Field Retirement Plan* Intracorp 401(k) Performance Sharing Plan* Cigna Life, Disability and Reimbursement Account Plan* Long-Term Disability Plan Cigna Medical and Dental Plan Universal Life Insurance Plan 1. An accountant s report (applies only to plans noted above with a *); 2. Financial information and information on payments to service providers; 3. Assets held for investment; 4. Transactions in excess of 5% of plan assets; 5. Insurance information, including sales commissions paid by insurance carriers; and 6. Information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates. To obtain a copy of the full annual report, or any part thereof, for Cigna 401(k) Plan, Connecticut General Life Field Retirement Plan, and/or Intracorp 401(k) Performance Sharing Plan, write or call the office of James N. Wolf, Plan Administrator, Cigna Corporation, 1601 Chestnut Street TL05T, Philadelphia, PA 19192; Telephone To obtain a copy of the full annual report, or any part thereof, for Cigna Life, Disability and Reimbursement Account Plan, Long-Term Disability Plan, Cigna Medical and Dental Plan, and/or Universal Life Insurance Plan, write or call the office of Marilyn A. Paluba, Plan Administrator, Cigna Corporation, 1601 Chestnut Street TL05T, Philadelphia, PA 19192; Telephone You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. You also have the legally protected right to examine the annual report at the main office of the plan (Cigna Corporation, 1601 Chestnut Street, TL05T, Philadelphia, PA 19192) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C