From the November 2011 issue of Treasury & Risk magazine

Gold AHA Winner in Strategic Investment

Mark-to-Market Solution: Honeywell International

John Tus, treasurer and VP; Kathleen Winters, controller and VP; and Harsh Bansal, VP, investments. John Tus, treasurer and VP; Kathleen Winters, controller and VP; and Harsh Bansal, VP, investments.

In the wake of the global recession, which battered pension plan assets, Honeywell International changed its approach to managing its defined-benefit plan. Last November, the $36 billion manufacturing and technology company broke from the pack and said that it would begin to use mark-to-market accounting for the plan, which had obligations of about $19 billion at the end of 2010.

The company also contributed to the plan to boost its funded status, lowered the asset return assumption, from 9% to 8%, and began to reassess the pension plan’s asset allocation.

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