DuPont 2006 Annual Report Download - page 103

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22. EMPLOYEE BENEFITS
The company offers various postretirement benefits to its employees. Where permitted by applicable law, the
company reserves the right to change, modify or discontinue the plans.
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 insurance policies, or remain unfunded.
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-40
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)