DuPont 2005 Annual Report Download - page 102

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E. I. du Pont de Nemours and Company
Notes to Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
Pensions
The company has both funded and unfunded noncontributory defined benefit pension plans covering substantially all U.S.
employees. The benefits under these plans are based primarily on years of service and employees’ pay near retirement. The
company’s funding policy is consistent with the funding requirements of federal laws and regulations.
Pension coverage for employees of the company’s non-U.S. consolidated subsidiaries is provided, to the extent deemed
appropriate, through separate plans. Obligations under such plans are funded by depositing funds with trustees, under insur-
ance policies, or by book reserves.
Other Postretirement Benefits
The parent company and certain subsidiaries provide medical, dental, and life insurance benefits to pensioners and survivors.
The associated plans are unfunded and the cost of the approved claims are paid from company funds. Essentially all of the
cost and liabilities are attributable to the U.S. parent company plans. These plans are contributory with pensioners and
survivors’ contributions adjusted annually to achieve a 50/50 target sharing of cost increases between the company and
pensioners and survivors. In addition, limits are applied to the company’s portion of the medical and dental cost coverage.
F-43