Honeywell International Inc., the maker of turbochargers and plane parts, amended its U.S. retiree medical plan during the third quarter to no longer offer group coverage to some retirees who are older than 65.
The change reduced the post-retirement benefit obligation by $137 million, Morris Township, New Jersey-based Honeywell said today in a regulatory filing.
“The independent market offers better and more cost- effective options than Honeywell can provide,” Rob Ferris, a company spokesman, said today in an e-mail. “We’re providing advisory services to help our retirees select and enroll into this new coverage to ensure a smooth transition.”
Beginning Jan. 1, 2011, Honeywell will transition some post- age-65 retirees to an individual market plan from company coverage, Honeywell said in an e-mail. Affected retirees must enroll in a new individual plan to have Medicare supplemental coverage after Dec. 31, 2010.
Honeywell didn’t say in the filing or e-mail whether the change is tied to the health-care overhaul signed by U.S. President Barack Obama in March. Honeywell also didn’t specify how many retirees would be affected.
Honeywell climbed 34 cents to $47.01 at 1:44 p.m. in New York Stock Exchange composite trading after boosting its full- year profit forecast and predicting that in 2011, sales may grow 5 percent or more.
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