Honeywell 2004 Annual Report Download - page 104

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage to eligible retirees. Our
retiree medical plans mainly cover U.S. employees who retire with pension eligibility for hospital, professional and other medical
services. All non-union hourly and salaried employees joining Honeywell after January 1, 2000 are not eligible to participate in our
retiree medical and life insurance plans. Most of the U.S. retiree medical plans require deductibles and copayments, and virtually all
are integrated with Medicare. Retiree contributions are generally required based on coverage type, plan and Medicare eligibility.
Honeywell has limited its subsidy of its retiree medical plans to a fixed-dollar amount for substantially all future retirees and for
almost half of its current retirees. This cap of retiree medical benefits under our plans limits our exposure to the impact of future health
care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from our general assets.
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