Johnson Controls 2010 Annual Report Download - page 87

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87
The Company expects to contribute approximately $23 million in cash to its postretirement health and other benefit
plans in fiscal year 2011. Projected benefit payments from the plans as of September 30, 2010 are estimated as
follows (in millions):
2011
$
23
2012
23
2013
23
2014
24
2015
24
2016-2020
101
In December 2003, the U.S. Congress enacted the Medicare Prescription Drug, Improvement and Modernization Act
of 2003 (Act) for employers sponsoring postretirement health care plans that provide prescription drug benefits. The
Act introduces a prescription drug benefit under Medicare as well as a federal subsidy to sponsors of retiree health
care benefit plans providing a benefit that is at least actuarially equivalent to Medicare Part D.1. Under the Act, the
Medicare subsidy amount is received directly by the plan sponsor and not the related plan. Further, the plan sponsor
is not required to use the subsidy amount to fund postretirement benefits and may use the subsidy for any valid
business purpose. Projected subsidy receipts are estimated to be approximately $3 million per year over the next ten
years.