Honeywell Gains Authorization For Additional Pension Funding

November 14, 2002 ( - Honeywell International Ltd., has received authorization from its board of directors to contribute $900 million more in cash and company stock to its pension plans to avoid a deficit.

The new contribution, which the company said a “substantial portion” will be in company stock, is expected to help close the gap between accumulated fund obligations and the fair value of the plan to avoid a $1.7 billion pension deficit, according to a Security and Exchange Commission filing on Wednesday.

Stock market returns have reduced Honeywell’s pension funds 15% this year, from $11 billion in 2001 to $9.4 year to date in 2002.    This year the company is projecting pension income to be $140 million, but anticipates expenses between $235 and $335 million next year.

Honeywell contributed $100 million to its pension fund during the third quarter.