Honeywell 2014 Annual Report Download - page 76

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Note 20. Pension and Other Postretirement Benefits
We sponsor both funded and unfunded U.S. and non-U.S. defined benefit pension plans covering
the majority of our employees and retirees. Pension benefits for substantially all U.S. employees are
provided through non-contributory, qualified and non-qualified defined benefit plans. All non-union
hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not
eligible to participate in Honeywell’s U.S. defined benefit pension plans. We also sponsor defined
benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain
jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of
the U.S. are not material to the Company either individually or in the aggregate.
We also sponsor postretirement benefit plans that provide health care benefits and life insurance
coverage mainly to U.S. eligible retirees. Less than 1% of Honeywell’s U.S. employees are eligible for
a retiree medical subsidy from the Company; and this subsidy is limited to a fixed-dollar amount. In
addition, more than 75% of Honeywell’s current retirees either have no Company subsidy or have a
fixed-dollar subsidy amount. This significantly 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 operating cash flow.
67
HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)