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.
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