With the contribution, Honeywell said it has now made $800 million in contributions to its US pension plans in 2002, with a previous contribution of $100 million in cash made in September, according to Dow Jones.
Additionally, Honeywell said is has named US Trust Company as independent fiduciary, responsible for making investment decisions on the company stock contributions to the defined benefit plan.
Previously, Honeywell had announced 2003 projected pension expenses to fall between $235 million and $335 million. The company anticipants a pension income of approximately $140 million this year, according to the report.
However, due to the fair value of plan assets being less than current obligations, Honeywell estimates it could take a charge of up to $1.7 billion on shareholders’ equity this year due to the pension underfunding.