- ----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1995 Commission File Number 1-973
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
PUBLIC SERVICE ELECTRIC AND GAS COMPANY THRIFT AND TAX-DEFERRED
SAVINGS PLAN
80 PARK PLAZA
NEWARK, NEW JERSEY 07101
MAILING ADDRESS: P.O. Box 570
NEWARK, NEW JERSEY 07101-0570
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
See page 2.
- ---------------------------------------------------------------------
- -------------------------------------------------------------------
Equities Growth Fund A NEW YORK LIFE INSURANCE COMPANY
TWENTIETH CENTURY INVESTORS, INC. 51 MADISON AVENUE
4500 MAIN STREET NEW YORK, NEW YORK 10010
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
PROVIDENT NATIONAL ASSURANCE
Balanced Fund B COMPANY
PHOENIX SERIES FUND FOUNTAIN SQUARE
101 MUNSON STREET CHATTANOOGA, TENNESSEE 37402
GREENFIELD, MASSACHUSETTS 01301
Enterprise Common Stock Fund D
Fixed Income Fund C: and ESOP Fund
J.P. MORGAN PUBLIC SERVICE ENTERPRISE GROUP
60 WALL STREET INCORPORATED
NEW YORK, NEW YORK 10260 80 PARK PLAZA
NEWARK, NEW JERSEY 07101-1171
METROPOLITAN LIFE INSURANCE
COMPANY Stock Index Equities Fund E
ONE MADISON AVENUE BANKERS TRUST COMPANY
NEW YORK, NEW YORK 10010-3690 280 PARK AVENUE
NEW YORK, NEW YORK 10017
TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY Utilities Equities Fund E
1150 SOUTH OLIVE FIDELITY PORTFOLIOS
LOS ANGELES, CALIFORNIA 90015-2287 82 DEVONSHIRE STREET
BOSTON, MASSACHUSETTS 02109
ALLSTATE LIFE INSURANCE COMPANY
ALLSTATE PLAZA WEST Government Securities Fund G
3100 SANDERS ROAD VOYAGEUR FUND MANAGERS INC.
NORTHBROOK, ILLINOIS 60062 90 SOUTH SEVENTH STREET
SUITE 4400
PRINCIPAL MUTUAL LIFE INSURANCE MINNEAPOLIS, MINNESOTA 55402
COMPANY
THE PRINCIPAL FINANCIAL GROUP International Stock Fund H
DES MOINES, IOWA 50392-0001 T. ROWE PRICE INC.
100 EAST PRATT STREET
STATE MUTUAL LIFE INSURANCE BALTIMORE, MARYLAND 21202
COMPANY
440 LINCOLN STREET
WORCESTER, MASSACHUSETTS 01653
- ------------------------------------------------------------------
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
INDEX
PAGE
----
INDEPENDENT AUDITORS' REPORT.................................... 4
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995 AND 1994.............................. 5-10
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995 and 1994................ 11-16
NOTES TO FINANCIAL STATEMENTS................................... 17-27
SCHEDULE OF ASSETS HELD FOR INVESTMENT - Item 27a............... 28
SCHEDULES OF REPORTABLE TRANSACTIONS - Item 27d................. 29
SIGNATURES...................................................... 30
EXHIBIT INDEX................................................... 31
INDEPENDENT AUDITORS' REPORT
Employee Benefits Committee of
Public Service Electric and Gas Company:
We have audited the accompanying statements of net assets available for
benefits of the Public Service Electric and Gas Company Thrift and Tax-
Deferred Savings Plan (the "Plan") as of December 31, 1995 and 1994, and
the related statements of changes in net assets available for benefits
for the years then ended. 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 in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits
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. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all
material respects, the net assets available for benefits of the Plan at
December 31, 1995 and 1994, and the changes in net assets available for
benefits for each of the years then ended in conformity with generally
accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental
information by fund is presented for the purpose of additional analysis
of the basic financial statements rather than to present information
regarding the net assets available for benefits and changes in net
assets available for benefits of the individual funds, and is not a
required part of the basic financial statements. The supplemental
schedules of (1) assets held for investment as of December 31, 1995 and
(2) transactions in excess of five percent of the current value of plan
assets for the year ended December 31, 1995 are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974, as amended.
The supplemental information and the supplemental schedules are the
responsibility of the Plan's management. Such supplemental information
and schedules have been subjected to the auditing procedures applied in
our audit of the basic 1995 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation
to the basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Parsippany, New Jersey
June 26, 1996
PAGE 1 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
Statement of Net Assets Available for Benefits
December 31, 1995
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ 65,343,084 $ -- $ -- $ -- $ 57,979,587
Equities Growth Fund.......... 23,362,801 23,362,801 -- -- --
Balanced Fund................. 12,096,913 -- 12,096,913 -- --
Insurance Annuity Contracts
(GICs)...................... 227,071,949 -- -- 227,071,949 --
Stock Index Equities Fund..... 52,506,341 -- -- -- --
Utilities Equities Fund....... 12,524,247 -- -- -- --
Government Securities Fund.... 6,535,810 -- -- -- --
International Stock Fund...... 10,913,105
------------ ------------ ------------ ------------ ------------
Total Investments........ 410,354,250 23,362,801 12,096,913 227,071,949 57,979,587
Participant Loans Receivable.. 13,154,101 -- -- -- --
Receivables - Interest
and Dividends............... 3,051,675 91,252 (86) 1,299,563 1,018,887
Cash and Temporary Cash
Investments................. 4,483,854 -- -- 3,556,107 265,618
------------ ------------ ------------ ------------ ------------
Total Assets............. $431,043,880 $ 23,454,053 $ 12,096,827 $231,927,619 $ 59,264,092
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $3,440,522 $ 102,110 $ 3,743 $ 1,729,423 $ 657,098
Purchases of Securities....... 1,007,474 -- -- -- 1,007,474
Accounts Payable.............. (1,848,720) (5,412) (6,883) (1,456,431) (621,693)
Forfeitures................... 100,450
Other......................... (45,570) (5,765) 487 (34,433) 825
------------ ------------ ------------ ------------ ------------
Total Liabilities........ 2,654,156 90,933 (2,653) 238,559 1,043,704
Net Assets Available for
Benefits.................... 428,389,724 23,363,120 12,099,480 231,689,060 58,220,388
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 2 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
Statement of Net Assets Available for Benefits (Continued)
December 31, 1995
Supplemental Information by Fund (Continued)
------------------------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities International
Fund E Fund F Fund G Fund H ESOP Fund
------------ ------------ ------------ ------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ -- $ -- $ -- $ -- $ 7,363,497
Equities Growth Fund.......... -- -- -- -- --
Balanced Fund................. -- -- -- -- --
Insurance Annuity Contracts
(GICs)...................... -- -- -- -- --
Stock Index Equities Fund..... 52,506,341 -- -- -- --
Utilities Equities Fund....... -- 12,524,247 -- -- --
Government Securities Fund.... -- -- 6,535,810 -- --
International Stock Fund...... -- -- -- 10,913,105 --
------------ ------------ ------------ ------------ ------------
Total Investments........ 52,506,341 12,524,247 6,535,810 10,913,105 7,363,497
Participant Loans Receivable.. -- -- -- -- --
Receivables - Interest
and Dividends............... 498,935 (10,121) 43,863 4,514 --
Cash and Temporary Cash
Investments................. 99,598 -- 47 104 56
------------ ------------ ------------ ------------ ------------
Total Assets............. $ 53,104,874 $ 12,514,126 $ 6,579,720 $ 10,917,723 $ 7,363,553
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ 502,441 $ 107,046 $ 133,423 $ 34,783 $ 44,350
Purchases of Securities....... -- -- -- -- --
Accounts Payable.............. 101,419 (119,315) (99,969) (30,190) --
Forfeitures................... -- -- -- -- --
Other......................... (6,684) -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Liabilities........ 597,176 (12,269) 33,454 4,593 44,350
Net Assets Available for
Benefits.................... 52,507,698 12,526,395 6,546,266 10,913,130 7,319,203
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 3 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
Statement of Net Assets Available for Benefits (Concluded)
December 31, 1995
Supplemental Information by Fund (Concluded)
----------------------------------------------------------------
Holding Trust
Account Loan Fund
------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ -- $ --
Equities Growth Fund.......... -- --
Balanced Fund................. -- --
Insurance Annuity Contracts
(GICs)...................... -- --
Stock Index Equities Fund..... -- --
Utilities Equities Fund....... -- --
Government Securities Fund.... -- --
International Stock Fund......
------------ ------------
Total Investments........ -- --
Participant Loans Receivable.. -- 13,154,101
Receivables - Interest
and Dividends............... 104,868 --
Cash and Temporary Cash
Investments................. 562,324 --
------------ ------------
Total Assets............. $ 667,192 $ 13,154,101
------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ 126,105 $ --
Purchases of Securities....... -- --
Accounts Payable.............. 389,754 --
Forfeitures................... 100,450 --
Other......................... -- --
------------ ------------
Total Liabilities........ 616,309 --
Net Assets Available for
Benefits.................... 50,883 13,154,101
============ ============
<FN>
See Notes to Financial Statements.
PAGE 1 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
Statement of Net Assets Available for Benefits
December 31, 1994
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ 63,158,483 $ -- $ -- $ -- $ 55,926,236
Equities Growth Fund.......... 13,120,332 13,120,332 -- -- --
Balanced Fund................. 7,091,225 -- 7,091,225 -- --
Insurance Annuity Contracts
(GICs)...................... 217,684,400 -- -- 217,684,400 --
Stock Index Equities Fund..... 31,419,790 -- -- -- --
Utilities Equities Fund....... 6,514,351 -- -- -- --
Government Securities Fund.... 5,338,527 -- -- -- --
International Stock Fund...... 9,321,491
------------ ------------ ------------ ------------ ------------
Total Investments........ 353,648,599 13,120,332 7,091,225 217,684,400 55,926,236
Participant Loans Receivable.. 14,066,064 -- -- -- --
Receivables - Interest
and Dividends............... 4,928,117 1,907,512 66,642 1,301,476 589,325
Cash and Temporary Cash
Investments................. 1,784,474 -- -- 765,840 814,375
------------ ------------ ------------ ------------ ------------
Total Assets............. $374,427,254 $ 15,027,844 $ 7,157,867 $219,751,716 $ 57,329,936
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $2,397,524 $ 99,735 $ 468 $ 1,758,789 $ 36,799
Purchases of Securities....... 1,120,383 -- -- -- 1,120,383
Accounts Payable.............. 350,736 1,813,160 63,065 (1,647,898) (428,945)
Forfeitures................... 126,104
Other......................... (45,568) (5,765) 488 (34,434) 825
------------ ------------ ------------ ------------ ------------
Total Liabilities........ 3,949,179 1,907,130 64,021 76,457 729,062
Net Assets Available for
Benefits.................... 370,478,075 13,120,714 7,093,846 219,675,259 56,600,874
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 2 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
Statement of Net Assets Available for Benefits (Continued)
December 31, 1994
Supplemental Information by Fund (Continued)
------------------------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities International
Fund E Fund F Fund G Fund H ESOP Fund
------------ ------------ ------------ ------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ -- $ -- $ -- $ -- $ 7,232,247
Equities Growth Fund.......... -- -- -- -- --
Balanced Fund................. -- -- -- -- --
Insurance Annuity Contracts
(GICs)...................... -- -- -- -- --
Stock Index Equities Fund..... 31,419,790 -- -- -- --
Utilities Equities Fund....... -- 6,514,351 -- -- --
Government Securities Fund.... -- -- 5,338,527 -- --
International Stock Fund...... -- -- -- 9,321,491 --
------------ ------------ ------------ ------------ ------------
Total Investments........ 31,419,790 6,514,351 5,338,527 9,321,491 7,232,247
Participant Loans Receivable.. -- -- -- -- --
Receivables - Interest
and Dividends............... 131,176 215,173 20,752 618,980 58,777
Cash and Temporary Cash
Investments................. 84,661 78 -- (77) 779
------------ ------------ ------------ ------------ ------------
Total Assets............. $ 31,635,627 $ 6,729,602 $ 5,359,279 $ 9,940,394 $ 7,291,803
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ 267,111 $ 1,814 $ 127,643 $ (82) $ 105,247
Purchases of Securities....... -- -- -- -- --
Accounts Payable.............. (46,955) 211,300 (110,919) 618,905 (45,977)
Forfeitures................... -- -- -- -- --
Other......................... (6,664) -- (18) -- --
------------ ------------ ------------ ------------ ------------
Total Liabilities........ 213,492 213,114 16,706 618,823 59,270
Net Assets Available for
Benefits.................... 31,422,135 6,516,488 5,342,573 9,321,571 7,232,533
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 3 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
Statement of Net Assets Available for Benefits (Concluded)
December 31, 1994
Supplemental Information by Fund (Concluded)
----------------------------------------------------------------
Holding Trust
Account Loan Fund
------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ -- $ --
Equities Growth Fund.......... -- --
Balanced Fund................. -- --
Insurance Annuity Contracts
(GICs)...................... -- --
Stock Index Equities Fund..... -- --
Utilities Equities Fund....... -- --
Government Securities Fund.... -- --
International Stock Fund......
------------ ------------
Total Investments........ -- --
Participant Loans Receivable.. -- 14,066,064
Receivables - Interest
and Dividends............... 18,304 --
Cash and Temporary Cash
Investments................. 118,818 --
------------ ------------
Total Assets............. $ 137,122 $ 14,066,064
------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ -- $ --
Purchases of Securities....... -- --
Accounts Payable.............. -- (75,000)
Forfeitures................... 126,104 --
Other......................... -- --
------------ ------------
Total Liabilities........ 126,104 (75,000)
Net Assets Available for
Benefits.................... 11,018 14,141,064
============ ============
<FN>
See Notes to Financial Statements.
PAGE 1 OF 3
THRIFT AND TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
For the Year Ended December 31, 1995
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 27,430,459 $ 2,636,045 $ 1,259,883 $ 13,440,286 $ 3,514,341
Cash Receipts................... 79,242,843 -- -- -- --
Additions to Trust Loan Fund.... 5,954,534 -- -- -- --
Employers Contributions......... 8,586,992 798,319 386,678 4,278,454 1,162,496
Interfund Transfer - net........ -- 4,953,379 1,935,110 (2,514,679) (11,851,074)
Participant Loan Repayments..... -- 495,000 260,634 3,417,606 897,588
------------ ------------ ------------ ------------ ------------
Total Deposits and
Contributions.............. 121,214,828 8,882,743 3,842,305 18,621,667 (6,276,649)
------------ ------------ ------------ ------------ ------------
Income
Interest........................ 15,238,679 -- -- 15,198,811 29,144
Dividends....................... 11,438,768 3,294,388 911,623 -- 4,246,390
Loan Interest Income............ -- 67,557 36,663 466,996 130,067
------------ ------------ ------------ ------------ ------------
Total Income............... 26,677,447 3,361,945 948,286 15,665,807 4,405,601
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investments................ 24,045,742 (854,855) 950,542 43,710 8,121,182
------------ ------------ ------------ ------------ ------------
Total Additions............ 171,938,017 11,389,833 5,741,133 34,331,184 6,250,134
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Disbursements................... 79,273,528 -- -- -- --
Withdrawals..................... 27,683,916 712,581 566,824 18,712,599 3,457,371
Dividends paid.................. 544,112 -- -- -- --
Participant Loans............... 5,954,534 409,113 203,424 3,294,682 919,871
Forfeitures..................... 100,431 21,072 6,704 40,972 9,561
Transfer to Savings Plan........ 469,847 4,661 (41,453) 269,130 243,817
------------ ------------ ------------ ------------ ------------
Total Deductions........... 114,026,368 1,147,427 735,499 22,317,383 4,630,620
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS... 57,911,649 10,242,406 5,005,634 12,013,801 1,619,514
NET ASSETS AVAILABLE FOR
BENEFITS BEGINNING OF PERIOD.. 370,478,075 13,120,714 7,093,846 219,675,259 56,600,874
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS END OF PERIOD........ $428,389,724 $ 23,363,120 $12,099,480 $231,689,060 $ 58,220,388
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 2 OF 3
THRIFT AND TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS (Continued)
For the Year Ended December 31, 1995
Supplemental Information by Fund (Continued)
---------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities International
Stock ESOP
Fund E Fund F Fund G Fund H Fund
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 3,638,339 $ 920,075 $ 565,616 $ 1,455,874 $ --
Cash Receipts................... -- -- -- -- --
Additions to Trust Loan Fund.... -- -- -- -- --
Employers Contributions......... 1,092,008 291,584 168,475 408,978 --
Interfund Transfer - net........ 5,842,677 3,109,551 (340,731) (703,918) (430,315)
Participant Loan Repayments..... 695,360 214,026 95,925 287,218 --
------------ ------------ ------------ ------------ ------------
Total Deposits and
Contributions.............. 11,268,384 4,535,236 489,285 1,448,152 (430,315)
------------ ------------ ------------ ------------ ------------
Income
Interest........................ -- -- 163 8
Dividends....................... 1,232,411 527,187 345,580 337,076 544,113
Loan Interest Income............ 99,598 28,435 13,927 37,783 --
------------ ------------ ------------ ------------ ------------
Total Income............... 1,332,009 555,622 359,507 375,022 544,121
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investments................ 11,453,890 1,757,616 679,124 746,505 1,053,740
------------ ------------ ------------ ------------ ------------
Total Additions............ 24,054,283 6,848,474 1,527,916 2,569,679 1,167,546
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Disbursements................... -- -- -- -- --
Withdrawals..................... 2,273,899 653,635 276,340 823,621 536,937
Dividends paid.................. -- -- -- -- 544,112
Participant Loans............... 708,713 188,334 62,531 167,866 --
Forfeitures..................... 13,454 4,296 1,691 2,681 --
Transfer to Savings Plan........ (27,346) (7,698) (16,339) (16,048) (173)
------------ ------------ ------------ ------------ ------------
Total Deductions........... 2,968,720 838,567 324,223 978,120 1,080,876
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS... 21,085,563 6,009,907 1,203,693 1,591,559 86,670
NET ASSETS AVAILABLE FOR
BENEFITS BEGINNING OF PERIOD.. 31,422,135 6,516,488 5,342,573 9,321,571 7,232,533
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS END OF PERIOD........ $ 52,507,698 $ 12,526,395 $ 6,546,266 $ 10,913,130 $ 7,319,203
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 3 OF 3
THRIFT AND TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS (Concluded)
For the Year Ended December 31, 1995
Supplemental Information by Fund (Concluded)
---------------------------------------------------
Holding Trust Loan
Account Fund
------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ -- $ --
Cash Receipts................... 79,242,843 --
Received from Savings Plan...... -- 5,954,534
Employers Contributions......... -- --
Interfund Transfer - net........ -- --
Participant Loan Repayments..... -- (6,363,357)
------------ ------------
Total Deposits and
Contributions.............. 79,242,843 (408,823)
------------ ------------
Income
Interest........................ 10,553 --
Dividends....................... -- --
Loan Interest Income............ -- (881,026)
------------ ------------
Total Income............... 10,553 (881,026)
------------ ------------
Appreciation (Depreciation)
of Investments................ 59,997 34,291
------------ ------------
Total Additions............ 79,313,393 (1,255,558)
------------ ------------
DEDUCTIONS
- ----------
Disbursements................... 79,273,528 --
Withdrawals..................... -- (329,891)
Dividends paid.................. -- --
Participant Loans............... -- --
Forfeitures..................... -- --
Transfer to Savings Plan........ -- 61,296
------------ ------------
Total Deductions........... 79,273,528 (268,595)
------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS... 39,865 (986,963)
NET ASSETS AVAILABLE FOR
BENEFITS BEGINNING OF PERIOD.. 11,018 14,141,064
------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS END OF PERIOD........ $ 50,883 $ 13,154,101
============ ============
<FN>
See Notes to Financial Statements.
/TABLE
PAGE 1 OF 3
THRIFT AND TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
For the Year Ended December 31, 1994
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 26,690,446 $ 2,281,492 $ 1,231,830 $ 13,244,076 $ 4,068,718
Cash Receipts................... 77,238,184 -- -- -- --
Received from Savings Plan...... 3,985,701 70,897 41,235 1,402,331 1,115,155
Additions to Trust Loan Fund.... 7,263,595 -- -- -- --
Employers Contributions......... 8,513,249 675,800 379,437 4,303,215 1,368,734
Interfund Transfer - net........ -- 478,457 (938,499) 4,073,562 (4,823,702)
Participant Loan Repayments..... -- 381,676 242,581 2,964,830 954,642
------------ ------------ ------------ ------------ ------------
Total Deposits and
Contributions.............. 123,691,175 3,888,322 956,584 25,988,014 2,683,547
------------ ------------ ------------ ------------ ------------
Income
Interest........................ 13,974,847 -- -- 13,909,712 48,976
Dividends....................... 9,808,759 1,913,021 217,547 -- 4,285,904
Loan Interest Income............ 799,208 52,315 31,375 413,835 143,643
------------ ------------ ------------ ------------ ------------
Total Income............... 24,582,814 1,965,336 248,922 14,323,547 4,478,523
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investments................ (18,165,924) (2,159,800) (539,629) -- (10,453,045)
------------ ------------ ------------ ------------ ------------
Total Additions............ 130,108,065 3,693,858 665,877 40,311,561 (3,290,975)
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Cash Disbursements.............. 77,556,173 -- -- -- --
Withdrawals..................... 28,076,864 395,934 362,133 17,887,677 4,415,351
Dividends paid.................. 607,787 -- -- -- --
Participant Loans............... 7,263,595 500,142 257,525 3,967,805 1,237,000
Forfeitures..................... 69,907 4,891 12,182 9,180 24,292
Other........................... 69,370 -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Deductions........... 113,643,696 900,967 631,840 21,864,662 5,676,643
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS... 16,464,369 2,792,891 34,037 18,446,899 (8,967,618)
NET ASSETS AVAILABLE FOR
BENEFITS BEGINNING OF PERIOD.. 354,013,706 10,327,823 7,059,809 201,228,360 65,568,492
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS END OF PERIOD........ $370,478,075 $ 13,120,714 $ 7,093,846 $219,675,259 $ 56,600,874
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 2 OF 3
THRIFT AND TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS (Continued)
For the Year Ended December 31, 1994
Supplemental Information by Fund (Continued)
---------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities International
Stock ESOP
Fund E Fund F Fund G Fund H Fund
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 2,967,197 $ 1,112,724 $ 737,621 $ 1,029,529 $ --
Cash Receipts................... -- -- -- -- --
Received from Savings Plan...... 408,038 56,300 12,088 162,777 557,575
Additions to Trust Loan Fund.... -- -- -- -- --
Employers Contributions......... 945,727 340,969 206,701 292,666 --
Interfund Transfer - net........ (1,325,266) (3,980,939) (1,413,795) 8,334,717 (404,535)
Participant Loan Repayments..... 630,117 204,357 128,970 195,841 --
------------ ------------ ------------ ------------ ------------
Total Deposits and
Contributions.............. 3,625,813 2,266,589 (328,415) 10,015,530 153,040
------------ ------------ ------------ ------------ ------------
Income
Interest........................ -- 76 -- -- 175
Dividends....................... 1,096,363 688,663 408,274 583,745 607,787
Loan Interest Income............ 84,661 30,599 16,242 26,538 --
------------ ------------ ------------ ------------ ------------
Total Income............... 1,181,024 719,338 424,516 610,283 607,962
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investments................ (632,810) (1,254,907) (969,114) (947,437) (1,562,428)
------------ ------------ ------------ ------------ ------------
Total Additions............ 4,174,027 (2,802,158) (873,013) 9,678,376 (801,426)
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Cash Disbursements.............. -- -- -- -- --
Withdrawals..................... 1,585,879 295,306 408,689 83,210 708,187
Dividends paid.................. -- -- -- -- 607,787
Participant Loans............... 713,963 202,217 118,694 266,249 --
Forfeitures..................... 4,151 5,117 2,748 7,346 --
Other........................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Deductions........... 2,303,993 502,640 530,131 356,805 1,315,974
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS... 1,870,034 (3,304,798) (1,403,144) 9,321,571 (2,117,400)
NET ASSETS AVAILABLE FOR
BENEFITS BEGINNING OF PERIOD.. 29,552,101 9,821,286 6,745,717 -- 9,349,933
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS END OF PERIOD........ $ 31,422,135 $ 6,516,488 $ 5,342,573 $ 9,321,571 $ 7,232,533
============ ============ ============ ============ ============
<FN>
See Notes to Financial Statements.
PAGE 3 OF 3
THRIFT AND TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS (Concluded)
For the Year Ended December 31, 1994
Supplemental Information by Fund (Concluded)
---------------------------------------------------
Holding Trust Loan
Account Fund
------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 17,259 $ --
Cash Receipts................... 77,238,915 --
Received from Savings Plan...... (731) 159,305
Additions to Trust Loan Fund.... -- 7,263,595
Employers Contributions......... -- --
Interfund Transfer - net........ -- --
Participant Loan Repayments..... -- (5,703,014)
------------ ------------
Total Deposits and
Contributions.............. 77,255,443 1,719,886
------------ ------------
Income
Interest........................ 15,908 --
Dividends....................... 7,455 --
Loan Interest Income............ -- --
------------ ------------
Total Income............... 23,363 --
------------ ------------
Appreciation (Depreciation)
of Investments................ 353,246 --
------------ ------------
Total Additions............ 77,632,052 1,719,886
------------ ------------
DEDUCTIONS
- ----------
Cash Disbursements.............. 77,556,173 --
Withdrawals..................... -- 1,934,498
Dividends paid.................. -- --
Participant Loans............... -- --
Forfeitures..................... -- --
Other........................... 64,861 4,509
------------ ------------
Total Deductions........... 77,621,034 1,939,007
------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS... 11,018 (219,121)
NET ASSETS AVAILABLE FOR
BENEFITS BEGINNING OF PERIOD.. -- 14,360,185
------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS END OF PERIOD........ $ 11,018 $ 14,141,064
============ ============
<FN>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF THE PLAN
The Board of Directors of Public Service Electric and Gas Company (PSE&G)
adopted the PSE&G Thrift and Tax-Deferred Savings Plan (Plan) to encourage
thrift and savings by eligible employees (Eligible Employees). It was
first offered to Eligible Employees in 1981. The Plan was last amended
March 26, 1996, effective May 1, 1996, except for changes listed below,
which are effective as of April 2, 1996. The Plan amendment permits
participation in the Plan from the date of hire. Matching Company
Contributions will start when an employee becomes an Eligible Employee.
Participation in the Plan is entirely voluntary, except with respect to
those employees who participated in the Employee Stock Ownership Plan
(ESOP) Fund as a result of their participation in PSE&G's TRASOP and/or
PAYSOP, which plans were merged into this Plan. Eligible Employees are
those employees not covered by a collective bargaining agreement and who
were hired by PSE&G or any affiliate of PSE&G participating in the Plan
(together hereafter each called an "Employer" or collectively
"Employers"). Certain Eligible Employees may also elect to have a
distribution from another qualified corporate plan contributed as a
rollover contribution with the approval of the Employee Benefits Committee
of PSE&G (Committee), the Plan Administrator. The Plan's Trust Fund now
consists of the Thrift Account Fund and the ESOP Fund, which are
separately maintained.
The following changes are effective April 2, 1996:
1. allow an employee who goes from non-represented status to represented
status to automatically transfer from the Thrift Plan to the Savings
Plan and keep all the same investment choices without a requirement
for paperwork or other action on his part;
2. allow investment elections in minimum increments of 1%, rather than
5%;
3. allow rollover contribution investment elections to be made in
specific dollar amounts, rather than in percentages, as now required;
4. delete the requirement that permitted non-hardship withdrawals be made
only once every six months; and
5. delete the minimum dollar requirement for post termination periodic
distributions and allow repayment periods for loans to be made in any
monthly term from 12 to 60 months.
Under the Plan, participating Eligible Employees (Participants) may elect
to make basic deposits to Investment Funds of such Participants choosing
within the Thrift Account Fund of 1%, 2%, 3%, 4%, 5% or 6% of their
compensation (Basic Deposits), and their respective Employer will
contribute an amount equal to 50% thereof, subject to certain exceptions
and limitations (Employer Contributions). In addition, Participants may
elect to make supplemental deposits to such Funds in increments of 1% of
Compensation up to an additional 19% of Compensation (Supplemental
Deposits), subject to certain limitations, without any corresponding
matching Employer Contribution. Participants may designate such Basic
and/or Supplemental Deposits as Nondeferred (post-income tax
contributions) or Deferred (pre-income tax contributions). Also, each
Participant may, within any Plan Year, make one or more Additional Lump
Sum Deposits on a nondeferred basis in the minimum amount of $250 and in
such total amounts which when aggregated with such Participant's Basic
Deposits and Supplemental Deposits, do not exceed 25% of his or her
NOTES TO FINANCIAL STATEMENTS - (Continued)
Compensation for that Plan Year. The maximum amount of Deferred Deposits
to a Participant's Thrift Account may have to be limited to less than 25%
of Compensation to meet requirements of the Internal Revenue Code of 1986,
as amended (IRC). The extent of any such limitation will be determined
from time to time by the Committee based on the actual pattern of Deferred
Deposits by all Participants. If the maximum permitted percentage of
Compensation for Thrift Account Deferred Deposits is reduced, then all
Deferred Deposits in excess of such percentage will automatically be
treated as Nondeferred Deposits. This will result in taxable income to the
affected Participants for Deferred Deposits in excess of any limit so
established. The Committee will attempt to assure that any such limitation
will apply only to future contributions, but it is possible that, in order
to meet requirements of the IRC, the limitation will, in some
circumstances, have to be applied retroactively. Deferred Deposits may
not generally be withdrawn until age 59-1/2. Nondeferred Deposits, on the
other hand, may be withdrawn at any time subject to certain penalties and
restrictions.
Thrift Account Deposits are made through payroll deductions by the
Participant's Employer, rollover contributions from other qualified plans
and Additional Lump Sum Deposits. Deposits by Participants and
contributions by their respective Employers are transferred to a Trustee
and separately held in the Plan's Thrift Account Fund of the Trust Fund
for investment and other transactions, as directed by Participants.
Participants are entitled to choose from among the Investment Funds
offered under the Plan in which to invest Deposits and Employer
Contributions.
Bankers Trust Company is the Trustee of the Trust Fund established
pursuant to the Plan. Effective January 1, 1996, this has become a Master
Trust also covering PSE&G's Employee Savings Plan (for employees covered
by collective bargaining agreements) as well as PSE&G's Pension Plan and
Cash Balance Pension Plan.
Loan Provisions
The Trustee may, subject to the approval of PSE&G's Director, Performance
and Rewards, lend a Participant who is employed by an Employer an amount
up to 50% of the value of the vested portion of such Participant's Thrift
Account and ESOP Fund, but no more than the aggregate value of such
Participant's Thrift Account or $ 50,000, whichever is less. Any
Participant loan must be for a principal amount of $ 1,000 or more and no
Participant may have more than two loans outstanding at any time. All
loans, including interest thereon, must be repaid by payroll deductions
in equal monthly installments of 12, to 60 months as selected by the
Participant. However, a Participant may prepay any such loan in full or
in part in a lump sum in accordance with such rules as may be prescribed
by the Committee. A Participant may not apply for more than one loan in
any calendar year. A loan to a Participant is considered an investment
of such Participant's Thrift Account and repayments of principal of any
loan together with interest thereon, are invested in the Thrift Account
Investment Funds of the Plan in accordance with the Participant's then-
current investment direction for Deposits and Employer Contributions.
NOTES TO FINANCIAL STATEMENTS - (Continued)
Each loan bears interest at a rate fixed from time to time by the
Committee taking into consideration interest rates currently then being
charged. The rate of interest applicable to any loan at its inception
remains in effect for the duration of such loan. During 1995, the rate
of interest on loans granted to Participants, by quarter and starting with
the first quarter, was 8-1/2%, 9%, 9%, and 8-3/4%. (See Note 2.
SIGNIFICANT ACCOUNTING POLICIES - Loans.)
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Plan have been prepared in accordance with
generally accepted accounting principles.
Dividends and Interest
Dividends, interest, and other income attributable to each Investment Fund
of the Plan are reinvested in that Investment Fund to the extent not used
to pay direct expenses of that Fund. (See Expenses of Plan, below.)
All deposits and employer contributions in Fixed Income Fund C are
invested in either traditional Guaranteed Investment Contracts
(traditional GICs) issued by insurance companies, or Benefit Responsive
Agreements (Synthetic GICs) which are similar to traditional GICs in terms
of their ability to preserve principal and provide a stable rate of
return. Synthetic GICs are different in that they are backed or secured
by a separate portfolio of high-quality fixed income securities that are
directly owned by the Fund. The portfolio is wrapped by a "book value
wrapper", usually another financial institution which provides a crediting
rate and which guarantees that benefit repayments will be made at book
value. Both earn interest at the composite rate of all GICs in which the
assets of such fund are then invested. Such rate varies as such
Traditional and Synthetic GICs mature or are entered into, and as Deposits
and Employer Contributions are made to and withdrawn from such contracts.
Under the contracts in effect during 1995, the composite rate of interest
earned by such assets so invested was not less than 6.74%.
ESOP Fund Participants receive quarterly payments directly from the
Trustee equal to the dividends paid to the Trustee on the shares of Common
Stock of Public Service Enterprise Group Incorporated (Enterprise), the
parent of PSE&G, held for their ESOP Fund.
Valuation of Investments
Investments of Equities Growth Fund A, Balanced Fund B, Enterprise Common
Stock Fund D, Stock Index Equities Fund E, Utilities Equities Fund F,
Government Securities Fund G, International Stock Fund H, and the shares
of Enterprise Common Stock held by the ESOP Fund are based upon quoted
market values. The value of Fixed Income Fund C is based on the contract
NOTES TO FINANCIAL STATEMENTS - (Continued)
value of all GICs in which the assets of the fund are invested. Temporary
investments are valued at cost which approximates fair market value.
Securities transactions are accounted for on the trade date.
In September 1994, the American Institute of Certified Public Accountants
issued Statement of Position 94-4 (SOP 94-4), "Reporting of Investment
Contracts Held by Health and Welfare Benefit Plans and Defined-
Contribution Pension Plans" which requires investment contracts issued by
either an insurance enterprise or other entity to be reported at either
fair value or contract value. SOP 94-4 was adopted, effective for plan
years beginning after December 15, 1994.
The Plan's financial statements have been prepared in accordance with the
financial reporting requirements of the Employee Retirement Income
Security Act of 1974, as amended (ERISA), as permitted by the applicable
rules. Under such requirements, realized gains and losses from securities
transactions are computed using an adjusted cost basis as prescribed by
the Department of Labor's (DOL) Rules and Regulations for Reporting and
Disclosure. The adjusted cost is the fair value of the security at the
beginning of the Plan year, or cost if acquired since that date.
Unrealized gains and losses on securities held for investment are computed
on the basis of the change in fair value between the beginning and end of
the Plan year.
Expenses of Plan
All expenses incurred in connection with the administration of the Plan,
including expenses of the Trustee, but excluding brokerage commissions and
taxes relating to the sale of shares of Enterprise Common Stock at the
direction of Participants, were paid directly by PSE&G and its
Participating Affiliates.
The assets of Common Stock Fund D and ESOP Fund are invested in shares of
Enterprise Common Stock. Shares of Enterprise Common Stock required for
Fund D are purchased by the Trustee either directly from Enterprise, at
its sole discretion, on the open market through a broker or from the ESOP
Fund. All shares sold for Common Stock Fund D and the ESOP Fund are sold
by the Trustee on the open market through a broker. Brokerage commissions
and taxes are paid by the Participants. However, in situations where the
ESOP is in a "sell" position and Fund D is in a "buy" position, Fund D
will buy from the ESOP at the closing price on the NY Stock Exchange. In
such case, no brokerage commissions are charged in the transaction.
NOTES TO FINANCIAL STATEMENTS - (Continued)
Loans
A loan to a Participant is considered an investment of such Participant's
Thrift Account and the principal amount of the loan is treated as a
separate investment within the various sub-accounts of the Participant's
Thrift Account. Repayments of the principal amount of the loan are
credited to each such sub-account, and repayments of principal along with
any accrued interest thereon are invested in the Plan's Investment Funds
in the same manner as the Participant's then-current investment direction
for Deposits and Employer Contributions. Loan amounts are taken from
sub-accounts of a Participant's Thrift Account in the following order:
(a) Deferred Deposits
(b) Unmatured vested Employer Contributions
(c) Matured vested Employer Contributions
(d) Rollover Contributions
(e) Unmatured post-1986 Nondeferred Deposits
(f) Matured post-1986 Nondeferred Deposits
(g) Pre-1987 Nondeferred Deposits
Each loan is secured by an assignment of the Participant's entire right,
title and interest in and to the Trust Fund to the extent of the loan and
accrued interest thereon (See Note 1. SUMMARY OF THE PLAN - Loan
Provisions).
Interfund Transfers - ESOP Fund to Thrift Account
Participants are permitted to transfer all, but not less than all, shares
from their ESOP Funds to their Thrift Accounts. To effect such transfers,
the Trustee will sell the shares of Enterprise Common Stock held in the
ESOP Fund and invest the proceeds in the Thrift Account Funds designated
by the Participant. The cash value of each share of Enterprise Common
Stock so transferred will be equal to the price per share of Enterprise
Common Stock actually received by the Trustee. Any such transfer is
treated as a rollover contribution.
NOTES TO FINANCIAL STATEMENTS - (Continued)
Vesting
Employer Contributions to a Participant's Thrift Account are immediately
vested upon a Participant's completion of five years of service with the
Employer or when a Participant is eligible for an immediately payable
retirement benefit under the Company's Pension Plan, is disabled, is laid
off or dies. All amounts credited to a Participant's ESOP Fund are fully
vested.
Penalties upon Withdrawal
If a Participant withdraws vested Employer Contributions and/or Deposits
before they have been in the Plan for two full calendar years, such
Participant loses the matching Employer Contributions on Deposits made
during the subsequent three months. Distributions to Participants
electing to withdraw Nondeferred Deposits and Employer Contributions are
made as soon as practicable after such elections are received by the Plan
Administrator. Nondeferred Deposits may be withdrawn at any time but
certain penalties may apply. Deferred Deposits may not be withdrawn during
employment prior to age 59-1/2 except for reasons of extraordinary
financial hardship and to the extent permitted by the IRC. Distributions
to Participants of approved hardship withdrawals are made as soon as
practicable after such approval.
Benefits Payable
As of December 31, 1995 and December 31, 1994, the net assets available
for benefits included benefits due to Participants who elected to withdraw
from the Plan in the amount of $365,707 and $469,756, respectively. Such
amounts are not reflected as a liability in the financial statements of
the Plan.
3. INVESTMENTS
The financial statements of the Plan include the following:
a. Thrift Account Investment Funds
(1) The assets of Equities Growth Fund A are invested in the
capital stock of the Twentieth Century Investors Inc.
Growth Fund (the "Twentieth Century Growth Fund"), a no-
load, open-ended investment company or mutual fund. The
prospectus for the Twentieth Century Growth Fund indicates
that such fund invests primarily in the common stock of
companies considered by its investment manager to have
above average potential for capital appreciation.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(2) The assets of Balanced Fund B are invested in the capital
stock of Phoenix Balanced Fund, a no-load, open-ended
investment company or mutual fund. The prospectus for the
Phoenix Balanced Fund indicates that such fund invests
primarily in a combination of equity and fixed income debt
securities that its investment manager expects to provide
current income along with long-term capital growth and
conservation of capital.
(3) The assets of Fixed Income Fund C are invested in GICs
with various insurance companies which contractually
provide for a guarantee of principal and interest for the
respective contract periods.
The following Traditional GICs are continuing in effect:
(i) A four and one half year contract that will expire June 30,
1997 and two five year contracts expiring December 31, 1997 and
December 31 1998, respectively, with Provident National
Assurance Company, effective interest rates of 6.67% and 6.81%,
and 5.85% respectively;
(ii) A five year and a four and one-half year contract with
Metropolitan Life Insurance Company, which will expire June 30,
1998 and December 31, 1999, respectively, effective interest
rates of 5.70% and 8.17%, respectively.
(iii) Two five year contracts with Allstate Life Insurance Company,
which will expire January 2, 1996 and June 30, 1998,
respectively, effective interest rates of 9.21% and 6.00%,
respectively;
(iv) A three and one-half and a five year contract with the
Principal Mutual Life Insurance Company, which will expire on
July 1, 1996 and December 31, 1999, respectively, effective
interest rates of 6.55% and 8.15%, respectively.
(v) A four and one-half year contract with Transamerica Occidental
Life Insurance Company, which will expire January 1, 1997, and
effective interest rate of 6.72%;
(vi) A five year contract with State Mutual Life Insurance Company,
which will expire January 3, 1999, effective interest rate of
5.66%; and
NOTES TO FINANCIAL STATEMENTS - (Continued)
(vii) A five year contract with New York Life Insurance Company,
which will expire June 30, 1999, effective interest rate of
7.07%.
The following Synthetic GIC is continuing in effect:
An open-ended contract with J.P. Morgan as the bank wrapper and
Pacific Investment Management Company managing the underlying
portfolio providing an effective credit rate, as of December 31,
1995, of 7.07%.
(4) The assets of Enterprise Common Stock Fund D are invested
by the Trustee in Enterprise Common Stock.
(5) The assets of Stock Index Equities Fund E are invested by
the Trustee in Bankers Trust Institutional Equity 500
Index Fund ("Stock Index Equities Fund"), a no-load mutual
fund managed by Bankers Trust Company, so as to achieve
the approximate return of the Standard and Poor's 500
Composite Stock Index.
(6) The assets of Utilities Equities Fund F are invested in
the capital stock of Fidelity Utilities Income Fund (the
"Fidelity Utilities Fund"), a no-load, open-ended
investment company or mutual fund. The prospectus for the
Fidelity Utilities Fund indicates that such fund invests
primarily in equity securities of gas and electric utility
companies and companies engaged in the communications
field. The Fidelity Utilities Fund may, from time to time,
include shares of Enterprise Common Stock or PSE&G
preferred stock.
(7) The assets of Government Securities Fund G are invested in
the capital stock of Voyageur U.S. Government Securities
Fund (the "Voyageur U.S. Government Securities Fund"), an
open-end diversified management investment company or
mutual fund. The prospectus of the Voyageur U.S.
Government Securities Fund indicates that such fund
invests primarily in U.S. Treasury bills, notes, bonds and
other obligations issued or unconditionally guaranteed by
the U.S. Government, or otherwise backed by the full faith
and credit of the U.S. Government, and repurchase
agreements fully secured by such obligations.
(8) The assets of International Stock Fund H are invested in the
capital stock of T. Rowe Price International Funds Inc. (the "T.
Rowe Price International Stock Fund"), a no-load, open-ended
investment company or mutual fund. The prospectus for the T. Rowe
Price International Stock Fund indicates that such fund invests
primarily in common stocks of established, non-U.S. companies.
NOTES TO FINANCIAL STATEMENTS - (Continued)
b. ESOP Fund
Shares of Enterprise Common Stock held as assets of the Plan's
ESOP Fund were transferred to the Plan in 1988 as a result of
the spin-off and merger with the Plan of the non-bargaining
unit portions of the PSE&G's former TRASOP and PAYSOP. No
additional contributions in or transfers into the ESOP Fund are
presently permitted or were allowed during 1995.
c. PARTICIPANTS
Participants
As of December 31,
------------------
1995 1994
----- -----
Total Plan Participants.......... 6,116 6,260
Participants by Fund
--------------------
Equities Growth Fund A ........... 1,825 1,385
Balanced Fund B .................. 1,177 978
Fixed Income Fund C .............. 4,324 4,522
Enterprise Common Stock Fund D ... 2,672 2,963
Stock Index Equities Fund E....... 2,407 2,039
Utilities Equities Fund F ........ 1,127 948
Government Securities Fund G ..... 832 821
International Stock Fund H (1).... 936 909
ESOP Fund ........................ 674 759
---------------------------------
(1) New investment option in 1994
4. UNIT VALUE INFORMATION - THRIFT ACCOUNT INVESTMENT FUNDS
Unit values of the Investment Funds are determined at the end of each
business day (Valuation Date) by dividing the market value of net assets
available for benefits by the number of units allocated to all
Participants as of the respective Valuation Date.
New units are allocated to each Participant's Thrift Account at the end
of each business day by dividing Deposits made by, or on behalf of, such
Participant for such business day and the related Employer Contributions,
if any, together with repayment of the principal amount of any loan to the
Participant's Thrift Account including interest earned thereon by the unit
value determined as of the end of the Valuation Date. If a Participant
makes a transfer between Investment Funds, makes a withdrawal, receives
a distribution or a loan, or makes a rollover contribution, the amount so
transferred, withdrawn, distributed, loaned, or rolled over is also
determined by the unit value of each Investment Fund as of the applicable
Valuation Date for such transaction.
NOTES TO FINANCIAL STATEMENTS - (Continued)
The unit information of investments by Investment Fund as of the last
business day of each year is as follows:
Investment Fund Year Unit Value Number of Units
- --------------- ---- ---------- ---------------
(Dollars)
---------
Equities Growth Fund A............ 1995 19.390000 1,204,889.170
1994 18.740000 700,124.439
Equities Fund B................... 1995 16.800000 720,054.345
1994 14.830000 478,167.565
Fixed Income Fund C............... 1995 11.387117 19,941,127.241
1994 10.653906 20,432,355.982
Enterprise Common Stock Fund D.... 1995 11.708390 4,951,969.229
1994 9.437915 5,925,698.207
Stock Index Equities Fund E....... 1995 13.970000 3,758,506.872
1994 10.440000 3,009,558.429
Utilities Equities Fund F......... 1995 16.160000 775,015.285
1994 13.060000 498,801.761
Government Securities Fund G...... 1995 10.780339 606,271.287
1994 9.010923 592,450.629
International Stock Fund H........ 1995 12.230000 892,322.567
1994 11.320000 823,453.268
- -------------------------------
ESOP FUND VALUATION
Enterprise Common Stock share value is determined by using the closing
market price on the New York Stock Exchange as reported in the Wall Street
Journal as Composite Transactions. If a Participant withdraws shares, the
shares are, at Participant's election, either distributed to such
Participant or sold by the Trustee and the proceeds, net of commissions
and taxes, are distributed to the Participant.
NOTES TO FINANCIAL STATEMENTS - (Continued)
The ESOP Fund information as of the last business day of each year is as
follows:
Year Price per share Number of shares
---- --------------- ----------------
ESOP Fund 1995 $30.625 240,441
1994 $26.500 272,915
5. FEDERAL INCOME TAXES
The Company believes that the Plan and its related Trust including the
portions of the former TRASOP and PAYSOP applicable to non-bargaining unit
Participants, which portions were spun-off and merged with the Plan
effective January 1, 1988, are qualified under Sections 401(a) and 501(a)
of the IRC and, as such, the Plan is exempt from taxation on its earnings.
A determination letter to such effect was obtained from the Internal
Revenue Service dated December 29, 1995. Participants are not taxed
either on Employer Contributions or on the earnings credited to their
Thrift Account Fund, until distribution of such Thrift Account Fund.
6. COMPLIANCE WITH ERISA
The Plan is generally subject to the provisions of Titles I and II of
ERISA, including the provisions with respect to reporting, disclosure,
participation, vesting and fiduciary responsibility. However it is not
subject to the funding requirements of Title I, and benefits under the
Plan are not guaranteed by the Pension Benefit Guarantee Corporation under
Title IV of ERISA.
7. SUBSEQUENT EVENTS
The crediting rate for the Synthetic GIC effective January 1 through
March 31, 1996, was 7.58%.
NOTES TO FINANCIAL STATEMENTS - (Continued)
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT - ITEM 27a
DECEMBER 31, 1995
Identity of Issue Units/Shares Historical Cost Market Value
- ----------------- ------------ --------------- ------------
Twentieth Century Growth Fund A....... 1,204,889 $ 26,486,478 $ 23,362,801
---------- ------------ ------------
Phoenix Balanced Fund B............... 720,054 $ 11,584,572 $ 12,096,913
---------- ------------ ------------
Fixed Income Fund C (Insurance
Annuity Contracts-GICs)
Provident National Assurance Company
-- 6.67%, four-year contract
expiring 6/30/97................. 18,106,581 $ 18,106,581 $ 18,106.581
-- 6.81%, five year contract
expiring 12/31/97................ 22,789,594 $ 22,789,594 $ 22,789,594
-- 5.85%, five-year contract
expiring 12/31/98................ 17,737,657 $ 17,737,657 $ 17,737,657
Metropolitan Life Insurance Company
-- 5.70%, five-year contract
expiring 6/30/98................. 16,513,532 $ 16,513,532 $ 16,513,532
Met Life Insurance Company
-- 8.7%, four and one half-year
contract expiring 12/31/99....... 12,654,184 $ 12,654,184 $ 12,654,184
Principal Mutual Life Insurance Company
-- 8.15%, four-year contract
expiring 12/31/99................ 13,960,260 $ 13,960,260 $ 13,960,260
Allstate Life Insurance Company
-- 9.21%, five-year contract
expiring 1/2/96.................. 14,888,615 $ 14,888,615 $ 14,888,615
-- 6% five-year contract
expiring 6/30/98.................. 17,246,074 $ 17,246,074 $ 17,246,074
Principal Mutual Life Insurance Company
-- 6.55%, three and one half-year
contract expiring 7/1/96......... 13,776,277 $ 13,776,277 $ 13,776,277
Transamerica Life Insurance Company
-- 6.72%, four and one half-year
contract expiring 1/1/97......... 13,941,434 $ 13,941,434 $ 13,941,434
State Mutual Life Insurance Company
-- 5.66%, five year
contract expiring 1/3/99......... 17,769,963 $ 17,769,963 $ 17,769,963
New York Life Insurance Company
-- 7.07%, five year contract
expiring 6/30/99................. 29,075,017 $ 29,075,017 $ 29,075,017
Synthetic GIC J.P. Morgan
-- 7.07% open-end contract 18,612,761 $ 18,612,761 $ 18,612,761
----------- ------------ ------------
227,071,949 $227,071,949 $227,071,949
----------- ------------ ------------
Equities Fund D
(Common Stock of Public Service
Enterprise Group, Inc............... 1,893,211 $ 52,143,715 $ 57,979,587
----------- ----------- ------------
Stock Index Equities Fund E............ 3,758,507 $ 42,721,182 $ 52,506,341
----------- ----------- ------------
Fidelity Utilities Fund F .. 775,015 $ 11,683,155 $ 12,524,247
----------- ----------- ------------
Voyageur U.S. Government Securities
Fund G........... 609,116 $ 5,956,896 $ 6,535,810
----------- ----------- ------------
Employee Stock Ownership Plan(Common
Stock of Public Service Enterprise
Group, Inc.)......................... 240,441 $ 5,448,393 $ 7,363,497
----------- ------------ ------------
T. Rowe Price International Stock
Fund H............. 892,323 $ 10,829,240 $ 10,913,105
----------- ------------ ------------
Total Investments................. $393,925,580 $410,354,250
Loans to Participants (interest
rates ranging from 8-1/2% to
9%, maturity date of one
to five years)................ $ 13,154,101 $ 13,154,101
------------ -------------
Total Assets Held for Investments.. $407,079,681 $ 423,508,351
============ =============
<FN>
Required by Department of Labor Regulation 2520.103-10(b)(6).103-6.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
THRIFT AND TAX-DEFERRED SAVINGS PLAN
SCHEDULE OF REPORTABLE CUMULATIVE TRANSACTIONS FOR THE YEAR
ENDED DECEMBER 31, 1995* - Item 27d
Value Value
of of Net
Security Purchases Sales Gain (Loss)
- -------- --------- ---------- -----------
Investment Contracts:
Metropolitan Life Insurance Company.......... $ 23,667,285 $ 11,013,101 $ --
Partner with Pacific Mutual Life.............
Insurance Company.......................... $ 178,932 $ 23,615,071 $ --
Principal Mutual Life Insurance Company...... $ 13,000,000 $ --
Partner with Prudential Life.................
Insurance Company.......................... $ 14,622,528 $ --
J.P. Morgan Synthetic........................ $ 18,612,761 $ --
Twentieth Century Investments Incorporated... $ 18,040,455 $ 6,942,312 $(272,144)
BT Pyramid Directed Account Cash Fund........ $171,282,730 $168,598,364 $ --
BT Pyramid Equity Index Fund................. $ 16,658,378 $ 7,026,653 $ 785,873
Public Service Enterprise Group Incorporated. $ 6,674,310 $ 13,504,727 $1,229,951
T. Rowe Price International Stock Fund....... $ 29,216,014 $ 28,366,325 $ (183,850)
SCHEDULE OF REPORTABLE INDIVIDUAL TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995* - Item 27d
Net
Purchases Sales Gain (Loss)
----------- ----------- -----------
Investment Contracts:
Metropolitan Life Insurance Company......... $ 10,750,000 $ 5,346,633 $ --
Partner with Pacific Mutual Life ...........
Insurance Company........... $ -- $ 23,615,071 $ --
Principal Mutual Life Insurance Company..... $ 13,000,000 $ --
Partner with Prudential Life................
Insurance Company......................... $ -- $ 14,622,528 $ --
J.P. Morgan Synthetic....................... $ 17,500,000 $ --
BT Pyramid Directed Account Cash Fund....... $ 54,103,045 $ 54,103,746 $701
* Reportable transactions as required by ERISA consist of any transaction
or series of transactions within the plan year with the same person or
entity which, when aggregated, involves an amount that is in excess of 5%
of the current value of plan assets at the beginning of the plan year.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this
annual report to be signed by the undersigned thereunto duly authorized.
Public Service Electric and Gas Company
Thrift and Tax-Deferred Savings Plan
---------------------------------------
(Name of Plan)
By M. PETER MELLETT
---------------------------------------
M. PETER MELLETT
Chairman of the Employee
Benefits Committee
Date: June 27, 1996
EXHIBIT INDEX
- ------------------------------
Exhibit Number
- ------------------------------
1 Public Service Electric and Gas Company
Thrift and Tax-Deferred Savings Plan, as
amended as of March 26, 1996, and
effective May 1, 1996.
2 Independent Auditors' Consent.