Exhibit m(ii)
AMENDMENT NO. 1 TO RULE 12B-1 PLAN FOR
THE RETAIL CLASS OF
MONEY MARKET FUND
(A SERIES OF CIGNA FUNDS GROUP)
Amendment No. 1 to the Rule 12b-1 Plan by and between CIGNA Funds Group
on behalf of the retail class (f/k/a retail service class) of Money Market Fund
(f/k/a CIGNA Money Market Fund) and CIGNA Financial Services, Inc. dated as of
October 27, 1998 (the "12b-1 Plan").
WHEREAS, CIGNA Funds Group (the "Trust"), on behalf of Money Market
Fund (the "Fund"), and CIGNA Financial Services, Inc. ("CFS") desire to amend
the 12b-1 Plan to eliminate the distribution fee set forth in paragraph 2.b.,
thereby reducing the periodic fee paid by the retail class of the Fund to CFS;
NOW, THEREFORE, the Trust, on behalf of the retail class of the Fund,
and CFS agree to replace paragraph 2 of the 12b-1 Plan with the following:
2. AUTHORIZED PAYMENTS. During each fiscal year of the
Fund, the Trust is hereby authorized to pay out of the assets of the
retail class of the Fund on a monthly basis, a periodic fee computed at
a rate of up to twenty-five one-hundredths of one percent (0.25%) of
the average daily net assets of the retail class of the Fund during
such fiscal year to CIGNA Financial Services, Inc. ("CFS"). The
shareholder servicing fee compensates CFS for providing ongoing
servicing and/or maintenance of shareholder accounts for the retail
class of the Fund and for providing distribution related services to
these classes. Shareholder service and account maintenance activities
may include receiving, aggregating, and processing shareholder or
beneficial owner (collectively, "shareholder") orders (including
opening accounts, arranging wire transfers, transmitting and receiving
funds, and verifying customer signatures); communicating periodically
with shareholders; acting as the sole shareholder of record and nominee
for shareholders; answering questions and handling correspondence from
shareholders about their accounts; transmitting proxy statements,
annual reports and other communications from the Fund; and performing
similar account administrative services. Distribution related services
include: payments made to and expenses of persons (including employees
of CFS) who are engaged in, or provide support services in connection
with, the distribution of shares of the Funds, such as answering
routine telephone inquiries and processing prospective investor
requests for information; compensation paid to securities dealers,
financial institutions and other organizations which render
distribution and administrative services in connection with the
distribution of the Funds' shares; costs related to the formulation and
implementation of marketing and promotional activities, including
direct mail promotions and television, radio, newspaper, magazine and
other mass media advertising; costs of printing and distributing
prospectuses and reports to prospective shareholders of the Funds;
costs involved in preparing, printing and distributing sales literature
for the Funds; costs involved in obtaining whatever information
analyses and reports with respect to market and promotional activities
on behalf of the retail class of the Fund that CFS deems advisable; and
such other costs as may from time to time be agreed upon by the Fund.
Payments of these fees are not tied exclusively to the expenses
incurred by CFS, so that payments may exceed expenses actually incurred
by CFS for providing shareholder and distribution related services.
Copies of the Master Trust Agreement establishing the Trust are on file
with the Secretary of the Commonwealth of Massachusetts, and notice is hereby
given that this document is executed on behalf of the Trust by an officer of the
Trust and not individually and that any obligations of or arising out of this
document are not binding upon any of the Trustees, officers, shareholders,
employees or agents of the Trust individually, but are binding only upon the
assets and property of the Trust.
IN WITNESS WHEREOF, the Trust, on behalf of the retail class of the
Fund, and CFS have executed this Amendment No. 1 to the 12b-1 Plan as of the 3rd
day of January, 2000.
ATTEST: CIGNA FUNDS GROUP
/s/ Xxxxxxx X. Xxxxx /s/ Xxxxxx X. Xxxxxxx III
_____________________________________ By:____________________________________
Xxxxxxx X. Xxxxx Xxxxxx X. Xxxxxxx III
Vice President and Secretary Vice President and Treasurer
