January 31, 2018 Newswires

Cigna Increases Minimum Wage To $16 An Hour

Business Wire

Cigna Raises Minimum Wage to $16.00 an hour
Provides Additional $15 Million in Salary Raises, Largely for Front Line Employees
Adds $30 Million to Employee 401(k) Match Program
Commits Additional Investments to the Cigna Foundation

BLOOMFIELD, Conn.--(BUSINESS WIRE)-- Global health service company, Cigna (NYSE: CI), today announced that the net financial benefits of United States tax reform will allow the company to further accelerate investments in our employees, our capabilities and our customers, clients, partners, and communities.

Through a series of moves, Cigna is reaffirming the critical role of employees, further fueling the company’s commitment to be champions for its communities, and continuing its investments in innovation and capabilities that drive differentiated value for customers and clients.

“It is because of our employees that Cigna continues to deliver on our mission to improve the health, well-being and sense of security of those we serve,” said David Cordani, Cigna President and Chief Executive Officer. “Reinvesting a portion of savings from tax reform in our employees is a reinvestment in our mission.”

Effective today, Cigna is establishing a minimum wage across its U.S. employee base of $16 an hour, substantially exceeding the national minimum wage in the United States as well as the hourly rate paid at many global corporations.

Cigna will also provide salary increases above the $16 an hour level, largely to front line employees. These investments in employee wages will total more than $15 million.

Additionally, Cigna is adding $30 million to its 401(k) program to match an additional one percent of employee compensation contributed to the 401(k) in 2018. This match will benefit the retirement accounts of over 30,000 employees.

These efforts are in addition to significant actions the company undertook in 2017 to recognize employees as owners of Cigna and support them in their lives. Last year, Cigna gave more than 40,000 employees, except executives, shares of Cigna stock, which have already grown substantially in value.

The company also implemented a caregiver leave program with up to four weeks of additional paid time off for employees caring for others, including child bonding, care for a seriously ill family member or qualifying military support.

In addition to recognizing the contributions and talent of its people, Cigna will make additional significant investments in the Cigna Foundation throughout the year, which combines Cigna’s passion to serve our communities, with strategic financial support to make better health, well-being and sense of security a reality for individuals and communities around the globe. The Cigna Foundation places a special focus on eliminating health disparities and improving access to care through community health workers in communities where Cigna employees live and work.

Cigna will continue to create differentiated customer and client value with the financial benefits of tax reform, which will be consistent with its ongoing approach to capital deployment, focused on reinvesting in its businesses to drive long term growth and strategic mergers and acquisitions.

About Cigna

Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and sense of security. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and has more than 95 million customer relationships throughout the world. To learn more about Cigna^®, including links to follow us on Facebook or Twitter, visit www.cigna.com.