Honeywell Retirement Earnings Plan€¦ · Honeywell International Inc. established the Honeywell Retirement Earnings Plan (the ―Plan‖) effective January 1, 2000 which introduced

Honeywell Retirement Earnings Plan

SUMMARY PLAN DESCRIPTION

Describing the Bendix Salaried Formula

Effective January 1, 2010

Honeywell Retirement Earnings Plan

Summary Plan Description

Table of Contents

Section 1 Why Should I Read This SPD? ................................................... Page 3

Section 2 How to Participate ........................................................................ Page 4

Section 3 How Your Benefit Is Determined ................................................ Page 10

Section 4 When You Can Begin Receiving Benefits ................................... Page 15

Section 5 How Benefits Are Paid ................................................................ Page 23

Section 6 Survivor Benefits ......................................................................... Page 33

Section 7 Situations Affecting Your Plan Benefits ...................................... Page 36

Section 8 Definitions.................................................................................... Page 38

Section 9 Other Plan Facts ........................................................................... Page 43

Section 10 ERISA .......................................................................................... Page 47

Honeywell International Inc. established the Honeywell Retirement Earnings Plan (the ―Plan‖)

effective January 1, 2000 which introduced a new simplified lump sum benefit formula, referred

to as the ―lump sum formula.‖ Honeywell employees covered by certain pension formulas at that

time were offered the opportunity to be covered by the new lump sum formula or to remain

covered by their ―traditional‖ AlliedSignal or Honeywell pension plan formulas (―Pension

Choice‖). The Plan therefore consists of the lump sum formula as well as the traditional benefit

formulas for those employees who elected to remain covered by those traditional formulas (―Old

Formulas‖).

The Old Formulas are also relevant for employees who elected to be covered by the lump sum

formula, since they have a minimum ―grandfathered‖ or ―frozen‖ benefit (―Protected Benefit‖)

under the Old Formulas that must be compared to the benefits provided under the lump sum

formula. Such employees receive the greater of the lump sum formula benefit or the Protected

Benefit under the Old Formula.

This Summary Plan Description (SPD) provides information about the basic features of one of

the Old Formulas—the Bendix Salaried Formula. You should read this SPD if you elected to

remain covered by the Bendix Salaried Formula during Pension Choice. This SPD is also

relevant to you if you were covered by the Bendix Salaried Formula before Pension Choice but

elected the lump sum formula during Pension Choice. This SPD describes how your Protected

Benefit under the Bendix Salaried Formula is calculated.

There are other Old Formulas that may apply to you or other groups of Honeywell employees.

These Old Formulas are described in separate SPDs. If you think you may be covered by Old

Formulas other than the Bendix Salaried Formula and want to request the SPD that applies to

you, call One Stop—Your Employee Services Access Line at 1-877-258-3699 and select option 5

for Retirement and Pension Benefits.

In the event of any inconsistency or conflict between this SPD and the Plan document, or any

omission from or ambiguity in the terms of the SPD, the Plan document will control.

Terms starting with capital letters throughout this SPD are defined in the appropriate section or

in Section 8 - Definitions.

The Company intends to continue the Plan. However, it reserves the right to modify,

change, revise, amend or terminate the Plan at any time, for any reason.

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Section 1 — Why Should I Read This SPD?

You should read this SPD if all or a portion of your pension benefit is calculated under the

Bendix Salaried Formula. Your pension benefit may be calculated under the Bendix Salaried

Formula if:

You participated in the Bendix Salaried Formula at one time, but you later transferred to a

new work location that provides a different pension plan or formula.

You elected to remain in the Bendix Salaried Formula during Pension Choice.

You elected to be covered by the lump sum formula during Pension Choice, but you

participated in the Bendix Salaried Formula immediately before Pension Choice.

This SPD describes the important features of the Bendix Salaried Formula. It will help you

understand how your benefits are calculated and paid.

However, special provisions apply to the calculation of your benefits under the Bendix Salaried

Formula if you elected to be covered under the lump sum formula. You have a Protected Benefit

under the Bendix Salaried Formula that is always compared to your benefit under the lump sum

formula. Your benefits under the lump sum formula are not described in this SPD. For specific

information about those benefits, you should obtain a copy of the Retirement Earnings Formula

SPD by calling One Stop—Your Employee Services Access Line at 1-877-258-3699 and

selecting option 5 for Retirement and Pension Benefits.

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Section 2 — How to Participate

A. Eligibility

You are an Eligible Employee in the Bendix Salaried Formula if you elected to remain

covered by the Bendix Salaried Formula during your Pension Choice, and you are not in any

of the following categories:

You are employed by a location, division, company or other affiliate of the Company that

does not participate in the Plan or by an Employer that does not offer the Bendix Salaried

Formula to its eligible employees; or

You are accruing a pension benefit under a formula other than the Bendix Salaried

Formula; or

You are covered by a collective bargaining agreement, unless such agreement specifically

provides for your participation in the Bendix Salaried Formula; or

You are classified by an Employer as a project employee (that is, is designated as a

project employee or similar designation because you are employed to work on a specific

project or projects), a student, co-op student or summer intern; or

You are a citizen or resident of a country other than the United States and are employed

by a division that is predominantly involved in international operations unless the Plan

Administrator determines that you are eligible to participate in the Bendix Salaried

Formula; or

You are retained under a contract or agreement specifying that you are not eligible to

participate in the Plan or the Bendix Salaried Formula (including, but not limited to, an

employee hired in connection with a government or other contract that does not permit

participation in the Plan or the Bendix Salaried Formula); or

You are a leased employee; or

You are classified as something other than a ―common law employee‖ (e.g., an

independent contractor, a consultant or a non-employee director), and any reclassification

as an employee shall not entitle you to participate in the Plan or the Bendix Salaried

Formula.

Note: No employees initially hired after December 31, 1999 are eligible for the Bendix

Salaried Formula.

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Rehires

If you participate in the Bendix Salaried Formula, have a Termination of Service and are

later rehired as an Eligible Employee, the length of time between your Termination of

Service and your rehire date determines the pension formula in which you participate

after your rehire:

IF…. AND…. THEN….

You participated in the

Bendix Salaried Formula

before your Termination of

Service

You are rehired as an

Eligible Employee within

12 months of the later of

your last day of active

employment with the

Employer, or the end of the

notice period under any

Employer-sponsored

severance plan

You will participate in the


following your rehire date

You participated in the


before your Termination of

Service

You are rehired as an

Eligible Employee after 12

months of the later of your

last day of active

employment with the

Employer, or the end of the

notice period under any

Employer-sponsored

severance plan

You will participate in the

lump sum formula or the

formula applicable to that

location, if any, following

your rehire date; your post-

rehire employment will be

recognized only for vesting

and eligibility purposes

under the Bendix Salaried

Formula

If you participate in the Bendix Salaried Formula, have a Termination of Service in

connection with a divestiture, outsourcing or similar transaction, and assets and

liabilities were transferred from the Plan to the pension plan maintained by the successor

employer, you will be treated as a new hire upon your rehire by an Employer. If assets

and liabilities were not transferred from the Plan to the pension plan maintained by the

successor employer, you will be treated as a rehired employee upon your rehire by an

Employer.

For more information, call One Stop—Your Employee Services Access Line at 1-877-258-3699

and select option 5 for Retirement and Pension Benefits.

B. Some Facts About Service 1. Types of Service

There are two types of service in the Plan: Vesting (eligibility) Service and Credited

Service.

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Vesting Service

Vesting Service is used to determine whether you are eligible for a benefit under the

Bendix Salaried Formula and is usually measured by your period of employment with

the Company and its affiliates. You are vested in—that is, earn a permanent right

to—your pension benefit after you complete five (5) years of Vesting Service.

Vesting Service is credited according to the following rules:

For employment after December 31, 1999, you will be credited with Vesting

Service beginning on January 1, 2000 and ending on your Severance from Service

Date.

Vesting Service is expressed in completed years and days.

The Company may grant Vesting Service for periods of employment with a prior

employer in connection with an acquisition. You will be notified if this applies to

you.

If you have a Severance from Service Date because of a quit, discharge or

retirement and you are reemployed by the Company or an affiliate before you have

a One-Year Period of Severance, you will be credited with Vesting Service (not in

excess of 12 months) for the period of absence.

If you are absent from service for a reason other than a quit, discharge or

retirement, you have a Termination of Service during the absence, and you are

reemployed by the Company or an affiliate before the first anniversary of the

original absence, you will be credited with Vesting Service (not in excess of 12

months) for the period of absence.

If you were a leased employee and you subsequently become a participant in the

Plan, you will be credited with Vesting Service (but not Credited Service) for your

period of leased employment.

In no event will your Vesting Service be less than your Credited Service for

purposes of the Bendix Salaried Formula.

Credited Service

Credited Service is used to calculate the dollar amount of your benefit.

Credited Service under the Bendix Salaried Formula is credited according to the

following rules:

For employment after December 31, 1999 and except as otherwise described

below, Credited Service will equal your Vesting Service reduced by –

Vesting Service for a period before you became a participant in the Bendix

Salaried Formula; and

Vesting Service for any period when you are an Inactive Participant.

Credited Service for any period after termination of your employment relationship

where you remain on the Company’s payroll (including where you receive

severance pay) will not exceed 12 months.

If you are an Expatriate Employee, Credited Service will include all employment

periods with nonparticipating affiliates.

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Credited Service while you are Disabled will include the applicable period

described under Section 4-When You Can Begin Receiving Benefits.

Credited Service will include periods after a transfer of employment as described

below.

2. Bridge Leave of Absence

To be eligible for a bridge leave of absence, your employment with an Employer must be

terminated under circumstances whereby you have received periodic severance pay. If, at

the end of those severance payments, you are:

Within 24 months of regular early retirement, or

Within 36 months of 80-point early retirement, or

Within 36 months of reaching Normal Retirement Age, if you are not eligible for any

early retirement benefit before this time frame,

then you will be placed on an unpaid bridge leave of absence to get you to your maximum

retirement benefit eligibility. Once you reach your maximum retirement eligibility, your

bridge leave will end. You may stop the bridge leave at any time and begin receiving any

pension benefit for which you are then eligible.

You will continue to earn Vesting and Credited Service during your bridge leave so that

you can receive the maximum retirement benefit available to you based on your age and

service at the expiration of your bridge leave.

3. Break in Service

Some situations could affect the way your service is counted. You continue earning

Vesting Service and Credited Service until your Severance from Service Date. If you have

a Severance from Service Date and don't complete an Hour of Service within 12 months

from such date, you have a ―One-Year Period of Severance.‖

If you have a Severance from Service Date and return to work for the Company or an

affiliate before you have a One-Year Period of Severance, you will receive Vesting

Service and Credited Service for the time you were away, up to 12 months. The pension

formula in which you will participate after your rehire date is determined in accordance

with the rehire rules described above.

Special rules apply if your employment status changes (for example, you change from co-

op or intern class to employee class). For more information, call One Stop—Your

Employee Services Access Line at 1-877-258-3699 and select option 5 for Retirement

and Pension Benefits.

4. Transferred Employees

If you transfer to any location within the Company or its affiliate, you continue to earn

Vesting Service under this Bendix Salaried Formula.

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If you transferred before April 1, 2000 within the Company or an affiliate to a location

that does not participate in this Bendix Salaried Formula, but does participate in another

non-lump sum based salaried retirement formula that uses final average compensation as

part of the benefit calculation, you’ll continue to earn Vesting Service under this Bendix

Salaried Formula.

When you eventually have a Termination of Service, your benefits under this Bendix

Salaried Formula are determined taking your total credited service into account. This

amount is then multiplied by a ratio, equal to your actual Credited Service under this

Bendix Salaried Formula divided by your total Credited Service to determine your benefit

under this Bendix Salaried Formula.

If you transfer after March 31, 2000, you continue to earn Vesting Service under this

Bendix Salaried Formula. However, other special transfer rules apply. For example:

If you transfer to a location that provides pension plan coverage and offered Pension

Choice to its employees, you remain covered under this Bendix Salaried Formula and

continue to earn Credited Service and Vesting Service.

Except as otherwise provided below, if you transfer to a location that does not offer

pension plan coverage, you stop accruing Credited Service, but your future earnings

will be considered in determining your benefit under the Bendix Salaried Formula.

If you transfer to a union position, your benefit under this Bendix Salaried Formula is

frozen, and you start accruing service under the applicable union formula, if any.

If you transfer from an Eligible Employee status to a position where you are not an

Eligible Employee, you will continue to participate in the Bendix Salaried Formula

after your transfer if all of the following requirements are met:

You must directly transfer from an Employer after December 31, 2004 to a non-

participating location, division, business unit or affiliate that was acquired on or

after December 18, 2004; and

You must be an Eligible Employee immediately before the transfer; and

Your continued participation under the Bendix Salaried Formula will end on the

earlier of the date you would no longer satisfy the definition of ―Eligible

Employee‖ if you were employed by the Employer, or your Termination of

Service; and

If you are not directly transferred from common law employment of the Employer

to common law employment of a non-participating location, division, business

unit or affiliate, this transfer rule does not apply; and

For the avoidance of doubt, this transfer rule does not apply to the following

transfers from an Employer:

o If you transfer to a non-participating union group; or

o If you transfer to an HTSI or DMC plant, location, division, business unit

or affiliate that does not participate in the Plan; or

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o If you transfer to Universal Oil Products.

Additional rules apply for other types of transfers. For more information about transfers,

call One Stop—Your Employee Services Access Line at 1-877-258-3699 and select

option 5 for Retirement and Pension Benefits.

Section Definitions

For purposes of this service crediting section, the following definitions apply:

Expatriate Employee

Any individual who is a citizen or resident of the United States, who is employed by a

foreign affiliate of the Company or an affiliate designated by the Company, and who is

covered by an agreement under Section 3121(l) of the Code, provided such individual: (a)

is hired by or transferred to the foreign affiliate while in the United States; (b) is

employed outside the United States; and (c) is expected to transfer back to the United

States before his or her Termination of Service.

Hour of Service

Each hour for which you are directly or indirectly paid or entitled to payment by the

Company or an affiliate for the performance of duties or for a period of approved

absence. For purposes of crediting Hours of Service, the Plan Administrator shall follow

Department of Labor Regulation Sections 2530.200b 2(b) and (c).

Inactive Participant

An employee who was a participant, has incurred a Termination of Service, and has not

taken a complete distribution of his Plan benefit.

One-Year Period of Severance

A 12-consecutive-month period beginning on your Severance from Service Date and

ending on each anniversary of such date if you do not perform an Hour of Service for the

Company or its affiliate during that period.

Severance from Service Date

The earlier of (a) the date you quit, are discharged, retire or die (provided that you are not

deemed to be discharged before your Termination of Service), and (b) the later of (i) the

first anniversary of the first day of your absence from employment with the Company or

an affiliate, with or without pay, for any reason not described in clause (a) or (b)(ii) (such

as vacation, holiday, disability (excluding periods where you continue to accrue Credited

Service because you are Disabled), maternity and paternity leave, layoff or military

service, and (ii) the date next following the expiration of an authorized leave of absence.

Termination of Service

Defined in Section 8-Definitions.

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Section 3 — How Your Benefit Is Determined

Your benefit under the Bendix Salaried Formula is determined using several factors: your Final

Average Compensation, Credited Service and, under some formulas, estimated Social Security

retirement benefits.

A. Final Average Compensation The Bendix Salaried Formula uses Final Average Compensation to determine your retirement

benefit. Final Average Compensation is the greater of the following:

The sum of the Compensation in the five complete calendar years beginning after

December 31, 1965 that produces the highest total, divided by 60 (provided however that

solely for purposes of this sum, short-term executive incentive compensation is included

in the year paid not the year earned) ; or

The monthly average of your Compensation for the 60 consecutive highest-paid calendar

months out of the 120 calendar months immediately preceding your Termination of

Service.

If you have less than five complete calendar years or 60 full calendar months of

Compensation before retirement or termination, your Compensation is averaged over your

period of employment. For purposes of determining consecutive months, any month in which

you received no Compensation will be ignored.

B. How Social Security Affects Your Benefits

Each year, you and the Company share the cost of Social Security contributions, up to an

annual limit. These contributions earn you the right to a Social Security benefit. Because the

Company has already contributed to your retirement income through these Social Security

contributions, the Bendix Salaried Formula takes your estimated Social Security retirement

benefits into account when determining your retirement benefits.

Your Social Security retirement benefit is the estimated monthly amount you would be

entitled to receive at the later of age 65 or your Termination of Service, under the Social

Security Act in effect on the January 1 coincident with or next preceding the earlier of your

Termination of Service or your date of Disability. Changes made to the Social Security Act

after this January 1 are disregarded.

Only your Social Security retirement benefit is counted; Social Security benefits payable to

other members of your family aren't used in calculating your retirement benefit. For this

purpose, the Bendix Salaried Formula assumes you have:

Level earnings from your termination date to your normal retirement age if you are

eligible for a vested retirement benefit (but not an early retirement benefit).

No future earnings if you are eligible for an early retirement benefit.

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Using Social Security retirement benefits to determine your retirement benefit doesn't affect

the amount you actually receive from Social Security. You collect, in full, any estimated

Social Security retirement benefits you’re entitled to receive. If Social Security retirement

benefits increase after you begin receiving your retirement benefits, your retirement benefits

won't be affected.

Also, note that the date for estimating your Social Security retirement benefit for purposes of

the Bendix Salaried Formula may be different than the date you elect to begin receiving your

actual Social Security benefits. If you begin receiving your Social Security benefits before

the later of age 65 or your Termination of Service, the amount of the estimate and your actual

Social Security benefits will be different.

Since the Plan’s Basic Formula uses estimates of your wages to determine your estimated

Social Security retirement benefit, the Social Security retirement benefit calculated by the

Bendix Salaried Formula may be different from your actual Social Security retirement

benefit. However, you may have your actual Social Security wage history used in calculating

the estimated Social Security amount. If you submit your actual wage history, your estimated

Social Security benefit will be recalculated by replacing estimated earnings with actual

earnings for all years that the Social Security Administration provides wage information for

you. When your actual wage history is used instead of the estimate, the Social Security

amount may be different—smaller or larger—which could affect your retirement benefits.

In order to have your actual wage history used, contact the Social Security Administration at

1-800-772-1213 or online at http://www.socialsecurity.gov and request a "Personal

Earnings and Benefit Estimate Statement.‖ The Social Security Administration suggests you

check your records regularly to make sure your earnings are being credited properly.

You must apply for a recalculation using actual Social Security wage history within 90 days

of the date you are notified in writing of your right to have your actual Social Security wage

history. If the recalculation produces a greater retirement benefit, an adjustment will be made

retroactively and will be reflected in your future payments. However, if a lesser retirement

benefit is produced, the adjustment will be made for future pension payments only.

C. The Plan Formulas Two formulas are used to determine your benefits under the Bendix Salaried Formula—the

benefits under each are compared, and you receive the greater amount.

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1. Basic Formula

Here’s how your monthly retirement benefits are determined under the Basic Formula:

2.0% of

Final Average

Compensation

times

Credited Service

to a maximum

of 25 years

PLUS

0.5% of

Final Average

Compensation

times

Credited Service

in excess of 25 years

MINUS

2.0% of estimated

Social Security

benefit

times

Credited Service

to a maximum

of 25 years

2. Minimum Formula

Here’s how your monthly retirement benefits are determined under the Minimum

Formula:

0.75% of Final

Average Compensation

plus

$8.00

TIMES

Credited Service

to a maximum of

30 years

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Example: Assume an employee, Chris, plans to retire at his normal retirement date. Chris has 30 years

of Credited Service, Final Average Compensation of $4,200.00 a month, and estimated

Social Security benefits of $1,500.00 a month. Here’s how Chris’ monthly benefit would be

calculated under each formula:

Under the Basic Formula:

(2.0% x $4,200.00) x 25 = $2,100.00

plus (0.5% x $4,200.00) x 5 = + 105.00

$2,205.00

minus (2.0% x $1,500.00) x 25 = – 750.00

$1,455.00

Under the Minimum Formula:

[(0.75% x $4,200.00) + $8.00] x 30 = $1,185.00

Chris would receive the larger, Basic Formula retirement benefit of $1,455.00 per month.

Note that this benefit, when added to Chris’ estimated Social Security benefit, equals 70.4%

of Chris’ Final Average Compensation [($1,455.00 + $1,500.00) ÷ $4,200.00].

D. Protected Benefit for Participants Who Elected to Be Covered by

the Lump Sum Formula Special rules apply if you elected to be covered by the lump sum formula during Pension

Choice. Your benefit under the Bendix Salaried Formula was ―frozen‖ and became your

Protected Benefit on the date just before your election to participate in the lump sum formula

became effective. You can never receive less than your Protected Benefit when you terminate

or retire. Your pension will be the greater of your benefit under the lump sum formula or your

Protected Benefit under the Bendix Salaried Formula.

Your Protected Benefit is calculated using the Bendix Salaried Formula on the date just

before your Pension Choice became effective (―Pension Choice Effective Date‖). This

Protected Benefit is calculated using your earnings, Credited Service and Social Security on

your Pension Choice Effective Date. Any earnings or Credited Service earned after your

Pension Choice Effective Date is ignored for this calculation. However, any Vesting Service

you earn after your Pension Choice Effective Date is counted in the calculation. For example,

your service after your Pension Choice Effective Date may allow your Protected Benefit to

become vested or eligible for early or normal retirement benefits.

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Example: Assume an employee, Chris, elected the lump sum formula during Pension Choice. At the

time of Chris’ election, Chris is age 45 with 10 years of Credited Service and has monthly

Final Average Compensation of $4,200.00 and an estimated Social Security benefit of

$1,500.00 a month. Because Chris is only eligible for a terminated vested benefit, his

benefit is calculated using Credited Service projected to his Normal Retirement Date, and

then multiplied by the ratio of actual Credited Service to projected Credited Service. Here’s

how Chris’ monthly Protected Benefit would be calculated under each formula:


2.0% x $4,200.00 x 25 = $2,100.00

plus 0.5% x $4,200.00 x 5 = + 105.00

minus (2.0% x $1,500.00) x 25 = – 750.00

$1, 455.00

$1,455.00 x 10/30 = $485.00


[(0.75% x $4,200.00) + $8.00] x 30 x 10/30 = $395.00

At age 65, Chris’ Protected Benefit would equal the larger, Basic Formula benefit of

$485.00 per month. If Chris retires at age 65, Chris can never receive less than this benefit.

You can elect to receive your Protected Benefit in any of the forms described in this

summary. In addition, a lump sum option is available. The lump sum is generally equal to the

Actuarial Value of your Protected Benefit payable at age 65. The Actuarial Value of your

Protected Benefit is determined using legally required interest rate and mortality assumptions.

This does not reflect the enhanced value of any Early Retirement benefits to which you may

otherwise be entitled. The Actuarial Value of the lump sum may be less than the Actuarial

Value of the other forms of benefit available to you before age 65 (such as the Qualified Joint

and Survivor Annuity or the Single-Life Annuity). You are strongly encouraged to consult

with your financial advisor before electing to receive payment of your Protected Benefit in a

lump sum.

E. Medicare Rebate After you reach age 65, your normal or early pension payments will be increased by $8.20 per

month if you are enrolled in Medicare Part B or Medicare+Choice. After you die, this

additional benefit will be paid to your surviving Spouse if he or she is enrolled in Medicare

Part B or Medicare+Choice and is entitled to a survivor benefit under this Bendix Salaried

Formula. If you are receiving a disability pension, this amount will be paid once the Plan

Administrator receives proof that you are enrolled in Medicare Part B or Medicare+Choice as

a disabled beneficiary.

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Section 4 — When You Can Begin Receiving Benefits

A. Normal Retirement You can take ―normal retirement‖ if you are employed by the Company or an affiliate on your

Normal Retirement Date. Your normal retirement benefit is calculated under the formula

described in Section 3 – How Your Benefit is Determined.

As long as you have a Termination of Service and file an application for retirement benefits

within 90 days before your Normal Retirement Date, pension payments may begin on your

Normal Retirement Date.

B. Early Retirement You are eligible for early retirement if you have a Termination of Service after the date you

meet the following requirements:

Regular Early Retirement—You are eligible for regular early retirement if you are at

least age 55 and have at least five years of Vesting Service.

80-Point Early Retirement—You are eligible for 80-point early retirement if your age

plus years of Vesting Service equals 80 or more. For example, if you are age 49, you need

31 years of Vesting Service to retire under an 80-point early retirement.

When you reach age 62—the earliest age at which you can begin receiving Social Security

benefits—the Social Security offset portion of the Basic Formula applies. In other words, the

Bendix Salaried Formula does not offset your monthly payment for Social Security benefits

until you actually are eligible to receive them, regardless of whether you have applied for

them.

You will receive pension payments determined under the portion of the benefit formula that

produces the greatest benefit—that is, the highest pre-age 62 retirement benefit and the

highest post-age 62 retirement benefit calculated under the Basic or Minimum Formula.

You can begin receiving benefits as of the first day of any month after the date you become

eligible for early retirement, as long as you have a Termination of Service and you timely

apply for benefits.

If you retire early, your retirement benefit will be based on the same benefit formula as your

normal retirement benefit, counting Credited Service until your Termination of Service. Since

it is assumed that you will receive retirement benefits for a longer period of time than if you

had retired at your Normal Retirement Date, your benefit will be reduced as described in this

summary.

1. Regular Early Retirement Reductions

The reduction applied to your retirement benefit under the Basic Formula (excluding the

Social Security offset) is 1/6 of 1% for each of the first 60 months retirement benefits are

paid before the first day of the month next following your 65th birthday, plus an

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additional 1/3 of 1% for each such month in excess of 60. The Social Security offset

portion of the Basic Formula is reduced for early commencement using the Social

Security Administration’s reduction factors, available online at:

http://www.socialsecurity.gov.

The reduction applied to your retirement benefit under the Minimum Formula is 6/10 of

1% for each of the first 60 months retirement benefits are paid before the first day of the

month next following your 65th birthday, plus an additional 4/10 of 1% for each for each

such month in excess of 60.

The reductions described above are based on your age at benefit commencement and are

set forth in the table below:

If You Commence

At:

You Will Receive This Percentage of Your Unreduced

Normal Retirement Benefit:

Age Basic Formula Minimum Formula

64 98.0% 92.8%

63 96.0 85.6

62 94.0 78.4

61 92.0 71.2

60 90.0 64.0

59 86.0 59.2

58 82.0 54.4

57 78.0 49.6

56 74.0 44.8

55 70.0 40.0

Example: Let's look at Chris’ situation again. Assume Chris retires at age 55 with 20 years of

Credited Service, Final Average Compensation of $4,200.00 and an estimated age 62

Social Security retirement benefit of $1,200.00 per month. Remember, Chris’ monthly

pension payments will not be offset for Social Security until Chris reaches age 62.


Benefit Payable [(2.0% x $4,200.00 x 20] x 70%* = $1,176.00

to Age 62

Benefit Payable $1,176.00 - [(2.0% x $1,200.00) x 20] = $696.00

after Age 62


{[(0.75% x $4,200.00) + $8.00] x 20} x 40%* = $316.00

*Early commencement reduction factor from the table above.

Since the Basic Formula provides a greater retirement benefit than the Minimum Formula

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under both the pre-age 62 and post-age 62 portions, Chris’ monthly regular early

retirement benefit before age 62 would be $1,176.00. After age 62, Chris’ retirement

benefit would be $696.00 per month.

2. 80-Point Early Retirement Reductions

Retirement benefits determined under the Final Average Compensation portion of the

Basic Formula are reduced in the same way as for regular early retirement, except the

amount of the reduction will never be more than 25%. If your retirement benefit is

calculated under the Minimum Formula, no reduction applies for early commencement of

retirement benefits.

These reductions are based on your age at benefit commencement and are set forth in the

table below.

If You Commence

At:

You Will Receive This Percentage of Your Unreduced

Age-65 Retirement Benefit:

Age Basic Formula Minimum Formula

64 98.0% 100.0%

63 96.0 100.0

62 94.0 100.0

61 92.0 100.0

60 90.0 100.0

59 86.0 100.0

58 82.0 100.0

57 78.0 100.0

56 75.0 100.0

55 75.0 100.0

You will receive a supplemental retirement benefit of $385.00 each month for pension

payments you receive before you reach age 62. However, your supplemental retirement

benefit is prorated if you transfer to the Bendix Salaried Formula, and:

You receive Vesting Service for period of service with any employer other than the

Company or an affiliate; or

You transferred from another plan; or

You transferred as the result of an acquisition and your Credited Service under this

Bendix Salaried Formula does not include service earned under the acquired plan.

The proration is determined by multiplying your supplemental retirement benefit by this

ratio:

Credited Service under this

Bendix Salaried Formula and the prior plan

divided by

total Vesting Service

1 8

Example:

Assume Chris retires at age 55 with 30 years of Credited Service. Also assume Chris’

Final Average Compensation is $4,200.00 per month and Chris’ estimated age-62 Social

Security retirement benefit is $950.00 per month. Here is how Chris’ 80-point early

retirement monthly benefit is determined under each formula:


Benefit Payable [(2.0% x $4,200.00 x 25] x 75%* $1,575.00

to Age 62 plus [(0.5% x $4,200.00 x 5] x 75%* + 78.75

$1,653.75

Benefit Payable $1,653.75 - [(2.0% x $950.00) x 25] $1,178.75

After Age 62

*Early commencement reduction factor from the table above.


Benefit Payable {[(0.75% x $4,200.00) + $8.00] x 30} $1,185.00

to Age 62 plus (Supplemental Benefit) + 385.00

$1,575.00

Benefit Payable {[(0.75% x $4,200.00) + $8.00] x 30} $1,185.00

After Age 62

No early commencement reduction applies to monthly pension payments under the

80-point early retirement Minimum Formula.

Since the pre-age 62 portion of the Basic Formula provides a higher benefit than the pre-

age 62 Minimum Formula benefit, Chris would receive $1,653.75 per month until he

reaches age 62. After age 62, the Minimum Formula provides a higher benefit than the

Basic Formula, so Chris would receive $1,185.00 per month.

C. Retirement After Your Normal Retirement Age If you continue to work past your Normal Retirement Age, you will continue to earn Vesting

and Credited Service until your Termination of Service, as long as you continue to satisfy the

eligibility requirements of the Bendix Salaried Formula. Your monthly retirement benefit will

be based on the same formulas that are used to calculate your normal retirement benefit. You

can begin receiving retirement benefits as of the first day of any month after your

Termination of Service (subject to the rules below if you are age 70½ or older), as long as

you timely apply for benefits.

If you are still working at age 70½, your benefit payments will not commence until after your

retirement date. When you eventually retire, your normal retirement benefit will be

actuarially adjusted to take into account the delay in payment from age 70½ to your actual

retirement date.

1 9

Keep in mind that if you are no longer working for the Company and its affiliates, you must

begin receiving your retirement benefit by April 1 of the year following the year in which you

reach age 70½.

If your retirement benefits are not being paid (―suspended‖) because you work beyond your

Normal Retirement Date, you’ll receive a ―suspension of retirement benefits‖ notice during

the first calendar month in which pension payments are withheld. This notice will include the

following information:

General description of why pension payments were suspended;

General description of the Plan provisions relating to the suspension;

Copy of the Plan provisions;

Statement regarding applicable Department of Labor regulations; and

Statement that you may request a review of the suspension.

D. Disability Retirement Benefit If you satisfy the Disabled definition that applies to a medical absence that first occurs on or

after January 1, 2007, you continue to earn Credited Service and Vesting Service toward your

retirement benefits under this Bendix Salaried Formula until your Termination of Service.

If you satisfy the Disabled definition that applies to a medical absence that first occurred

before January 1, 2007, you continue to earn Credited Service and Vesting Service toward

your retirement benefits under this Bendix Salaried Formula until the earliest of the date you

recover or refuse to submit proof of your continuing disability and your LTD payments end,

are eligible for a pension and elect to retire, reach age 65 (with special provisions if you

become Disabled after age 60), or die.

You can begin receiving a monthly retirement benefit based upon your benefit as of the date

your LTD payments end if you meet the minimum requirements for early or normal

retirement. If you elect to retire while receiving LTD payments, your pension payments may

offset your LTD payments. Please consult your LTD Plan for information on how your

pension payments impact your LTD benefits. If you are married and die while receiving LTD

Plan benefits but before you elect to retire, your Spouse will receive retirement benefits as

described in Section 6 - Survivor Benefits.

E. Deferred Vested Pension Not every employee will spend his or her entire career with the Company and its affiliates. If

you have a Termination of Service before you meet the eligibility requirements for early or

normal retirement benefits, you will still be eligible to receive a pension benefit if you are

vested when your employment ends. You are vested when you have at least five years of

Vesting Service.

2 0

Generally, your deferred vested benefit is determined the same way as your normal retirement

benefit, based on your:

Credited Service projected to what would have been your Normal Retirement Date; and

Estimated Social Security benefit using earnings projected to what would have been your

Normal Retirement Date.

This amount is then multiplied by a ratio:

Credited Service at Termination of Service

divided by

Credited Service as if

you continued to participate in the Bendix Salaried Formula

until your Normal Retirement Date

Pension payments may begin on the first day of the month after your Termination of Service,

reach your early retirement age and timely apply for benefits. If you elect to receive benefits

before your Normal Retirement Date, your monthly pension payments will be reduced to

reflect the longer payment period. Keep in mind that you are not eligible for the Medicare

rebate described earlier in this summary.

The reduction factor used to calculate your deferred vested pension benefit will depend on

your age when you begin receiving benefits.

If you have a Termination of Service after you reach age 50, but before you reach your

Normal Retirement Date, and your benefits are calculated under the Basic Formula, your

monthly pension payments are reduced by 1/6 of 1% for each of the first 60 months pension

payments are made before your Normal Retirement Date, and 1/3 of 1% for each such month

that exceeds 60.

Otherwise, pension payments are reduced by 6/10 of 1% for each of the first 60 months

pension payments are made before the first day of the month next following your Normal

Retirement Age, 1/2 of 1% for each such month that exceeds 60, and 1/6 of 1% for each such

month that exceeds 120.

2 1

You Will Receive this Percentage

of Your Unreduced Vested Benefit…

If You Begin

Receiving

Payments At

Age:

If You Terminate

After Age 50

and Your Benefit Is Calculated

under the

Basic Formula

If You Terminate

at or Before Age 50 OR

After Age 50

and Your Benefit Is Calculated

under the Minimum Formula

64 98.0% 92.8%

63 96.0 85.6

62 94.0 78.4

61 92.0 71.2

60 90.0 64.0

59 86.0 58.0

58 82.0 52.0

57 78.0 46.0

56 74.0 40.0

55 70.0 34.0

54 66.0 32.0

53 62.0 30.0

52 58.0 28.0

51 54.0 26.0

50 50.0 24.0

Example: If Chris is vested, leaves the Company at age 51 with 12 years of Vesting Service and has

a normal retirement benefit of $675.00 a month under the Basic Formula, Chris will

receive a monthly benefit of:

$648.00 if vested benefits begin at age 63 ($675.00 x 96.0%)

$580.50 if vested benefits begin at age 59 ($675.00 x 86.0%)

$472.50 if vested benefits begin at the earliest date benefits are payable to Chris - age

55 ($675.00 x 70.0%)

F. If You Are Re-Employed After Benefits Commence

If you are re-employed by the Company or an affiliate before your Normal Retirement Date

and you were already receiving your pension benefits:

Your pension benefits will be stopped while you are working;

Upon your subsequent Termination of Service, your pension benefit will be

redetermined as if you first retired based on your pension accruals before and after

your absence; and

Subject to the rules for electing to receive a pension payment, you will be entitled to

review your prior payment election.

2 2

If you are re-employed by the Company or an affiliate after your Normal Retirement Date

and you were receiving your pension benefits in an annuity form, those benefits will be

suspended while you are working only if you're compensated for 40 or more Hours of Service

per month. Otherwise, your pension benefits continue to be paid during your period of re-

employment.

If your pension benefits are stopped due to a period of re-employment, you'll receive a

"suspension of benefits" notice during the first calendar month in which pension payments

are withheld. This notice will provide a:

General description of why pension payments are suspended;

General description of the Plan provisions relating to the suspension;

Copy of the Plan provisions;

Statement regarding applicable Department of Labor regulations; and

Statement that a review of the suspension may be requested.

When you retire again, your pension benefits will be recomputed taking into account your

Vesting and Credited Service during all periods of employment. Your recomputed pension

benefit will not be reduced for any payments you received before your payments were

suspended. If you are re-employed after your Normal Retirement Date, your prior payment

election will be followed and you will not be entitled to choose a new payment option.

If you are re-employed by the Company or an affiliate after you have received a lump sum of

your entire Plan benefit, you shall:

Immediately commence participation in the Plan as of your rehire date if you are an

Eligible Employee (but not necessarily in the Bendix Salaried Formula); and

Have all Vesting Service restored (but not Credited Service or Compensation paid

prior to your rehire date).

2 3

Section 5 — How Benefits Are Paid

The Bendix Salaried Formula offers several pension payment methods. You choose the method

that best suits your needs. Your normal form of pension payment depends on your marital status

when pension payments begin. If you prefer, you can elect one of the optional forms of payment.

You must do so within the time period specified in “Applying for Benefits”.

A. Lump Sum Payments to Plan Participants If the Actuarial Value of your vested benefit is $1,000 or less (before the date payment starts),

you automatically will be paid your pension benefit in a lump sum.

If the Actuarial Value of your vested benefit is between $1,000 and $5,000 and you do not

timely respond to benefit commencement paperwork that is sent to you, the Plan

Administrator will transfer the lump sum value to an Individual Retirement Account (IRA)

that is set up in your name. You can elect to keep the funds in this IRA, take a distribution, or

transfer them to another IRA in your name.

The determination of whether the Actuarial Value of your Plan benefit is $5,000 or less is

made in the year in which your Termination of Service or death occurs. For these purposes,

the Plan Administrator may redetermine the Actuarial Value in any subsequent year if

payment has not yet begun.

If the Actuarial Value of your vested benefit is more than $5,000 but does not exceed

$10,000, you will have the option of taking the benefit in a single lump sum (as long as

spousal approval is provided where required) or of choosing an optional form of payment.

If you receive a single lump sum payment from the Plan, such payment will fully satisfy all

benefits due from the Plan.

If the Actuarial Value of your benefit is more than $10,000, the lump sum option is not

available. You will have a choice of pension payment options.

If you are re-employed by the Company or an affiliate after you have received a lump sum of

your entire Plan benefit, you shall:

Immediately commence participation in the Plan as of your rehire date if you are an

Eligible Employee (but not necessarily the Bendix Salaried Formula); and

Have all Vesting Service restored (but not Credited Service or Compensation paid

prior to your rehire date).

B. Lump Sum Payments to the Surviving Spouse of a Participant If you die before your benefit commences, your surviving Spouse may be eligible for a lump

sum payment from the Plan. If the Actuarial Value of the surviving Spouse’s benefit is

$5,000 or less when you die, the benefit will automatically be distributed shortly after your

death is reported. Your surviving Spouse must report your death by calling One Stop—Your

Employee Services Access Line at 1-877-258-3699 and selecting option 5 for Retirement and

Pension Benefits.

2 4

However, if the Actuarial Value of the surviving Spouse’s benefit is more than $5,000 but

does not exceed $10,000, your surviving Spouse will have the option of taking the benefit in

a single lump sum or having it paid as an annuity.

If the Actuarial Value of the surviving Spouse’s benefit is more than $10,000, the lump sum

option is not available. In this case, your surviving Spouse will be entitled to the benefit as an

annuity.

C. Rollover Rules Applicable to Lump Sum Payments Any lump sum pension payment made from the Plan to you or your surviving Spouse is

eligible for a direct rollover to another qualified pension plan or to an Individual Retirement

Account (IRA). However, for direct rollovers, a $200.00 minimum applies. For partial

rollovers, a $500.00 minimum applies. If you do not elect a rollover, federal tax law requires

that the Plan withhold 20% of the payment as an advance estimated payment for federal

income taxes. (State withholding taxes may also apply.) You will receive further information

on rollovers and tax rules applicable to your payment when you elect to commence benefits.

D. Normal Payment Method Your normal form of pension payment depends on your marital status when pension

payments begin.

If you are single, your benefits will be paid as a single-life annuity. You will receive a

monthly benefit for your lifetime; no pension payments are made after your death.

If you are married, your benefits will be paid as a Qualified Joint and 50% Survivor

Annuity. You will receive reduced monthly benefits for your lifetime, and after your

death, your Spouse will receive a benefit equal to 50% of your post-age 62 benefit for the

rest of his or her life. Because these retirement benefits are payable for two lifetimes,

your retirement benefits will be reduced as follows:

If Your Spouse Is

Younger than You...

If Your Spouse Is

Older than You...

Your benefits are reduced by 11%

plus 0.25% for each full year over

three that your age exceeds your

Spouse’s (up to a maximum 16%

reduction)

Your benefits are reduced by 11% minus

0.25% for each full year over three that

your Spouse’s age exceeds yours (with the

lowest possible reduction of 8.5%)

If you are married and want to select a pension payment option other than the normal

form of pension payment (the Qualified Joint and 50% Survivor Annuity), your Spouse

must provide written, notarized consent to the specific pension payment option you

select.

E. Optional Payment Forms You may elect one of these optional pension payment forms instead of your normal form of

pension payment.

2 5

Single-Life Annuity: Under this form of pension payment, you will receive a monthly

benefit for as long as you live. No benefits are payable after your death.

Survivor Annuity: This form of annuity pays you a reduced monthly benefit. When you

die, 75% or 100% (as you select) of your post-age 62 monthly benefits will be paid to

your Spouse. (Your benefits are reduced to reflect the fact that benefits are payable for

two lifetimes.) This option is not available if you are single.

The amount of the reduction depends on the difference between your age and your

Spouse’s age and the option you choose:

If You Choose

this Option...

And Your Spouse Is

Younger than You...

And Your Spouse Is

Older than You...

75% Your benefits are reduced by 15%



Spouse's (up to a maximum 22.5%

reduction)


minus 0.375% for each full year

over three that your Spouse's age

exceeds yours (with the lowest

possible reduction of 11.25%)

100% Your benefits are reduced by 19%



Spouse’s (up to a maximum 29%

reduction)


minus 0.5% for each full year over

three that your Spouse’s age

exceeds yours (with the lowest

possible reduction of 14%)

10-Year Certain & Life Annuity: This annuity provides benefits for your life with an

extra guarantee. Benefits are reduced by 5% because they are guaranteed for 10 years. If

you die before you have received 120 monthly pension payments, pension payments will

continue to your designated beneficiary until a total of 120 monthly pension payments

have been made to you and your beneficiary. If you die after the elected 10-year guarantee

period, no further benefits will be paid.

If pension payments are continued to your beneficiary, he or she may opt to receive the

present value of the remaining payments in a lump sum. If you name more than one

beneficiary, the payment method for any remaining benefit after your death must be

agreed upon by all beneficiaries (for example, continuing monthly pension payments to

the end of the guaranteed period or one lump-sum pension payment).

If your beneficiary(ies) predecease you and you do not name another beneficiary, the

present value of any remaining payments will be paid to your estate. Unless you

designate otherwise, if you die, you have more than one beneficiary and a beneficiary dies

before all payments have been made, the remaining beneficiaries shall receive the

deceased beneficiary’s future payments in proportion to their relative interests. If you die,

you have one beneficiary, and that beneficiary dies before all payments have been made,

the present value of the remaining payments will be paid to the beneficiary’s estate.

Naming a Beneficiary for a 10-Year Certain & Life Annuity

When you elect a 10-year certain and life annuity, you’ll be asked to name a primary and

a contingent beneficiary. Your primary beneficiary is someone who will receive your

2 6

Bendix Salaried Formula benefits if you die. A contingent beneficiary is someone who

will receive your Bendix Salaried Formula benefits if your primary beneficiary dies

before all payments have been made. Under current law, if you are married, your Spouse

automatically is your primary beneficiary. If you want to name someone other than your

Spouse as your beneficiary, your Spouse must consent to your choice, in writing, in the

presence of a notary public. You may change your primary and contingent beneficiaries

at any time, but if you wish to do so, generally your Spouse must provide written consent.

Level Income Feature: If you are eligible for early retirement and retire before age 62,

this feature will provide a larger benefit to you before age 62 (the age at which you can

begin receiving Social Security retirement benefits), and will automatically reduce your

Bendix Salaried Formula benefit once you reach age 62—whether or not you actually

begin receiving Social Security benefits at that time.

Note: Plan benefits are paid on a current month basis-that is, on the first day of a month

for that month. However, Social Security pays benefits on a different payment cycle. As

such, you should prepare for a difference in the timing of your pension payments for the

month after you turn age 62.

You'll be notified when you retire about the optional pension payment methods available

to you in conjunction with the level income feature. These options may allow you to

continue pension benefits to a survivor after your death. However, you cannot elect this

feature if you are only entitled to receive a disability or deferred vested benefit, nor is it

available as a survivor benefit. In addition, your monthly pension payment will be

reduced to reflect any optional pension payment method you choose.

2 7

Example Let’s look at how Chris’ Basic Formula retirement benefit might be paid under each of the pension payment

options. In these examples, let’s assume Chris retires at age 60 and Chris’:

Spouse is 57 years old and is Chris’ designated survivor.

Pre-age 62 retirement benefit is $1,400.00 per month and post-age 62 retirement benefit is $1,000.00 per

month.

Estimated Social Security benefit at age 62 is $1,000.00 per month.

Social Security offset is $400.00 per month (Chris’ pre-age 62 benefit minus the post-age 62 benefit).

In reviewing the following examples, keep in mind that the benefit calculations are based on the single-life

annuity amount, reduced to reflect the fact that benefits are payable for two lifetimes.

Payment Method

Monthly Retirement Benefit Survivor’s Monthly

Retirement Benefit

Single-Life Annuity Pre-Age 62: $1,400.00

Post-Age 62: $1,000.00

None

None

Joint & 50%

Survivor Annuity

Pre-Age 62: Chris’ reduced post-age 62

monthly retirement benefit is determined

first (see below). The Social Security

offset ($400.00) is then added back. So,

Chris’ total monthly retirement benefit is

$890.00 + $400.00, or $1,290.00.

Post-Age 62: Chris’ monthly single-life

annuity retirement benefit is reduced by

11% (100% - 11% = 89%). So, Chris’

retirement benefit is $1,000.00 x 89%, or

$890.00 per month.

50% of reduced post-age 62 retirement

benefit of $890.00, or $445.00.

2 8

Payment Method

Monthly Retirement Benefit

Survivor's Monthly

Retirement Benefit

Joint & 75%

Survivor Annuity






$850.00 + $400.00, or $1,250.00.



15%. So, Chris’ retirement benefit is

$1,000.00 x 85%, or $850.00 per month.

75% of reduced post-age 62

retirement benefit of

$850.00, or $637.50.

Joint & 100%

Survivor Annuity




offset ($400.00) is then added back. So


$810.00 + $400.00, or $1,210.00.


annuity benefit is reduced by 19%. So,

Chris’ benefit is $1,000.00 x 81%, or

$810.00 per month.

100% of reduced post-age 62

retirement benefit of

$810.00, or $810.00.

10-Year Certain &

Life Annuity






$950.00 + $400.00, or $1,350.00.



5%. So, Chris’ retirement benefit is

$1,000.00 x 95%, or $950.00 per month.

This retirement benefit is

paid for Chris’ lifetime, with

pension payments guaranteed

for 10 years. If Chris dies

before retirement benefits

have been paid for 10 years,

Chris’ beneficiary will

receive the remaining

pension payments at the post-

age 62 amount.

2 9

Payment Method

Monthly Retirement Benefit

Survivor's Monthly

Retirement Benefit

Level Income Feature Pre-Age 62: Chris’ pre-age 62 retirement

benefit from the Plan is $1,895.00

($495.00 + $1,400.00). This is based on

the pre-age 62 single-life annuity plus a

percentage of Chris’ Social Security not

included in the $400.00 Social Security

offset.

Post-Age 62: When Chris reaches age 62,

Chris’ Plan retirement benefit is reduced

by the Social Security retirement benefit

($1,895.00 - $1,000.00 = $895.00).

Remember, however, since Chris is

entitled to receive retirement benefits

from Social Security at age 62, Chris’

total monthly income will remain about

the same as long as Chris applies for

Social Security retirement benefits

($895.00 + $1,000.00 = $1,895.00).

This pension payment method may be

available with other pension payment

methods described above.

A benefit may continue to

Chris’ survivor depending on

the optional payment method

elected.

F. Applying for Benefits To receive any type of payment under the Plan, call One Stop—Your Employee Services

Access Line at 1-877-258-3699 and select option 5 for Retirement and Pension Benefits. You

must apply for your benefits not more than 90 nor less than 45 days before you want pension

payments to begin.

Once the Plan Administrator receives your retirement application, your right to a pension

benefit under the Plan will be verified, and the Plan Administrator will grant or deny your

application. If your application is granted, you will be sent—in a timely manner before your

chosen retirement date (which is referred to as your Benefit Commencement Date or BCD)—

a detailed pension package containing your preliminary pension calculation and a description

of the procedure to follow to start your pension payments.

If you do not follow the election procedure described in the pension package by the due dates

specified, you will need to reapply for pension benefits and choose a later BCD.

Please refer to the following guidelines for deadlines you must meet to start receiving your

pension payment on your desired BCD.

3 0

If you want your BCD to

be...

You must apply between...

And make your elections

by...*

January 1 October 1 and November 15 December 31

February 1 November 1 and December 15 January 31

March 1 December 1 and January 15 February 28

April 1 January 1 and February 15 March 31

May 1 February 1 and March 15 April 30

June 1 March 1 and April 15 May 31

July 1 April 1 and May 15 June 30

August 1 May 1 and June 15 July 31

September 1 June 1 and July 15 August 31

October 1 July 1 and August 15 September 30

November 1 August 1 and September 15 October 31

December 1 September 1 and October 15 November 30

*To receive your pension payments on your BCD, your pension elections must be made by

the 5th of the month prior to your BCD. If your elections are made after the 5th of the month

but before your chosen BCD, your BCD will remain the same but your first month’s payment

will be delayed. You must also return the necessary paperwork for your chosen BCD by the

due date stated in the pension paperwork you receive. If you make your elections on a timely

basis but do not return the required paperwork by the due date, you must start the process

again and select a later BCD.

To help you make your elections, the Plan Administrator will provide you with information

explaining:

The terms and conditions of your normal pension payment method;

Your rights to waive your normal pension payment method and the financial implications

of making this choice;

Your spouse’s rights concerning waiving the normal pension payment method; and

Your rights to change a previous choice to waive your normal pension payment method.

If you submit a valid election of a Joint and Survivor Annuity and you die before your BCD,

survivor benefits will be paid to your Spouse in accordance with that election. If you submit a

valid election for the Level Income Feature with a Joint and Survivor Annuity and you die

before your BCD, the Level Income Feature will be canceled, and survivor benefits will be

paid to your Spouse in accordance with the Joint and Survivor Annuity portion only.

If you submit a valid election of any other form of payment available under the Bendix

Salaried Formula and you die before your BCD, that election will automatically be canceled,

and survivor benefits will be paid to your Spouse as described in the Section 6--Survivor

Benefits.

3 1

You may change your form of payment at any time before your chosen BCD (subject to the

spousal consent requirements); you will not be allowed to change your form of payment after

that date.

Claims and Appeals

The Plan is administered by the Company’s Vice President – Human Resources,

Compensation & Benefits.

If you disagree with a decision that is made with respect to your Plan benefits, you may file a

written claim. Your written claim, along with any supporting documentation, should be sent

to:

Plan Administrator

c/o Honeywell International Inc.

P.O. Box 1447

Morristown, New Jersey 07962-1447

Regular Claims

Once your claim has been documented and you have submitted any relevant information, the

Plan Administrator must process it within 90 days after receiving it. However, in some cases,

additional time may be needed. If so, you will be notified that an additional 90-day

processing period is required.

If your claim is denied, you will be notified in writing. This written notice will tell you the

reason for the denial and the specific Plan provisions on which the denial is based. It will also

point out what additional information is needed, if any, that could change the decision to

deny the claim. Finally, the notice will tell you that you can have the decision reviewed by the

Honeywell Pension and Savings Appeals Committee (―Committee‖) and explain the

procedures for such review.

Certain Claims for Disabled Status

Claims relating to whether you satisfy the Disabled definition for medical leaves before

January 1, 2007 will be processed within 45 days of the Plan Administrator’s receipt of the

claim. This 45-day period may be extended two times for an additional 30 days each if the

Plan Administrator determines that additional time is necessary. You will be notified in

writing if additional processing time is required.

If your claim is denied based on an internal rule, guideline, protocol or other similar criterion

or based on a medical necessity or experimental treatment exclusion or limit (or other similar

limit), the written notice will explain the basis of the exclusion and provide copies of related

documentation to you on request.

3 2

Appeals

If your claim is denied, you can appeal the denial and have your claim reviewed. You have

60 days (180 days for Disabled claims described above) to appeal from the time you are

notified of the denial. Your written appeal should be sent to:

Honeywell Pension and Savings Plan Appeals Committee


P.O. Box 1119


Besides having the right to appeal, you or your authorized representative can examine any

documents related to your claim. You can also submit, in writing, reasons why you think the

claim should not be denied.

Your appeal will be considered at the next Committee meeting following the date your

written appeal is received, unless your written appeal is received within 30 days of that

meeting. In that case, your appeal will be considered at the second Committee meeting

following the date your written appeal is received. If special circumstances cause the

Committee to need additional time to resolve your appeal, you will be notified in writing

before the extension period begins, and your appeal will be decided at the third Committee

meeting following the date your written appeal was received. The Committee’s final decision

will be sent to you in writing as soon as possible, but no later than five days following the

date the Committee resolved your appeal.

The Committee’s written decision will provide you the reason for the denial, the specific Plan

provisions on which the denial is based, a statement that you may receive free of charge all

documents relevant to your claim and a statement of your right under ERISA to bring legal

action against the Plan in federal court.

You must exhaust the claims and appeals process before you can bring legal action against

the Plan in federal court. All legal actions against the Plan or the Plan Administrator

must be filed in court within the six-month period that begins on the date your claim

and appeal rights are exhausted.

3 3

Section 6 — Survivor Benefits

A. If You Die Before You Retire

Your surviving Spouse may be eligible for survivor benefits under the Bendix Salaried

Formula if you are vested and die while an active employee or before you begin receiving

your Bendix Salaried Formula benefits.

1. If You Die While an Active Employee

If you are married, your surviving Spouse's benefit depends on whether you have reached

your earliest possible retirement age when you die.

If you have not reached your earliest possible retirement age and you die, your

surviving Spouse is entitled to a benefit determined as if you had a Termination of

Service on your date of death and began receiving benefits at your earliest possible

retirement date with an immediate Joint and 50% Survivor Annuity based on the post-

age 62 retirement benefit. The benefit is payable to your surviving Spouse on the first

day of the month after the date you would have reached your earliest possible

retirement date (assuming proper application for payment is made by your surviving

Spouse) and is payable for your surviving Spouse’s life. If your surviving Spouse

defers payment, the benefit would be adjusted to reflect the later start date.

If you have reached your earliest possible retirement age and you die, your

surviving Spouse will receive the benefit described above, computed as if you had

retired on the date of your death with an immediate Joint and 50% Survivor Annuity

based on your post-age 62 retirement benefit. Pension payments begin on the first day

of the month after your death (assuming proper application for payment is made by

your surviving Spouse) and continue to your surviving Spouse for life. If your

surviving Spouse defers payment, the benefit will be adjusted to reflect the later start

date.

2. If You Die After Your Termination of Service, but Before Your BCD

If you have a Termination of Service with a deferred vested benefit or entitlement to

receive a pension benefit and die before your BCD, your surviving Spouse may be

eligible for a pre-retirement survivor benefit as described below:

If you die before you’re eligible to receive your pension benefit (age 55 with five

years of service or 80 points), your surviving Spouse’s benefit is based on the pension

payment you would have been eligible to receive on the first day of the month after

your death as if you had retired at your earliest eligible date and had selected the

Qualified Joint and 50% Survivor Annuity. The benefit is payable to your surviving

Spouse on the first day of the month after the date you would have reached your

earliest possible retirement date (assuming proper application for payment is made by

your surviving Spouse) and is payable for life. If your surviving Spouse defers

payment, the benefit will be adjusted to reflect the later start date.

3 4

If you die after you’re eligible to receive your pension benefit, your surviving

Spouse's benefit is based on the pension payment you would have received on the first

day of the month after your death as if you had retired and selected the Qualified Joint

and 50% Survivor Annuity. The benefit is payable to your surviving Spouse on the

first day of the month after the date you die (assuming proper application for payment

is made by your surviving Spouse) and is payable for life. If your surviving Spouse

defers payment, the benefit will be adjusted to reflect the later start date.

B. If You Die After Your BCD If you die after your BCD, your Dependent Children may be eligible for certain survivor benefits.

1. Dependent Child Benefit

If you are not married and die after your BCD, a monthly benefit continues, in equal

shares, to your children who were Dependent Children when you retired and when you

died.

If you die after you are age 62, the amount of this benefit is 50% of the monthly

benefit you were receiving at the time of your death, before any adjustment for the

level income feature (if applicable).

If you die before you are age 62, the amount of the benefit is 50% of the monthly

benefit you would have received if you had lived past age 62, before any adjustment

for the level income feature (if applicable).

If you are married, elect the Qualified Joint and 50% Survivor Annuity, and both you

and your surviving Spouse die after pension payments begin, a monthly benefit continues,

in equal shares, to your children who were Dependent Children when you retired. The

monthly benefit is the amount that was or would have been payable to your Spouse under

the Qualified Joint and 50% Survivor Annuity.

Pension payments begin on the first day of the month after your death, or your surviving

Spouse's death, whichever is later, and end with the pension payment before the date your

child is no longer considered a Dependent Child.

2. Lump Sum Death Benefit

If you have at least 10 years of Credited Service and are receiving normal or early

retirement or disability benefits when you die, your designated beneficiary will receive a

one-time lump-sum pension payment equal to 180% of your Final Average

Compensation.

If you have less than 10 years of Credited Service when you die, the post-retirement death

benefit is multiplied by this ratio:

Credited Service

divided by

10

3 5

Example: Chris retires with 12 years of Credited Service and Final Average Compensation of

$4,000.00 per month. When Chris dies, Chris' designated beneficiary will receive a

lump-sum pension payment of $7,200.00 (180% of $4,000.00).

On the other hand, if Chris had five years of Credited Service when Chris retired,

Chris’ beneficiary would receive $3,600.00 ($7,200.00 x 5/10).

However, your post-retirement death benefit is prorated if you transfer to this Bendix

Salaried Formula from another pension formula or plan sponsored by the Company or an

affiliate. The proration is determined by multiplying your post-retirement death benefit by

this ratio:

Credited Service under this Bendix Salaried Formula

divided by

total Credited Service

In any case, the amount of this post-retirement death benefit will never be less than

$2,000.

If your designated beneficiary dies before you do, or if you have not named a beneficiary,

this benefit will be paid to your estate.

3 6

Section 7 — Situations Affecting Your Plan Benefits

Some situations could cause a loss or delay of your Plan benefits. Your benefits may be affected

by the following situations:

If you have a Termination of Service before you have five years of Vesting Service, no

Bendix Salaried Formula benefit is payable.

No pension payment will be made for any month in which you are receiving Company-paid

short-term disability benefits.

Your disability retirement benefit will stop if you recover or you refuse to submit proof of

your continuing disability when requested.

Your Plan benefit may be reduced by certain Workers’ Compensation and other benefits you

receive that are funded by Company contributions. This reduction would be in addition to a

portion of your estimated Social Security retirement benefit already considered in

determining your Bendix Salaried Formula benefit.

Plan benefits are reduced by any benefits paid from any other tax-qualified retirement plan to

which the Company or an affiliate has contributed for any period of employment for which

you received Credited Service under this Plan.

If you are unable to care for your own affairs, any pension payments due can be paid to

someone who is authorized to conduct your affairs. This may be a relative or a court-

appointed guardian.

Pension payments begin only after your application for benefits is received and processed.

Payments do not begin automatically.

If you, your Spouse or your survivor can’t be located, pension benefits will begin once a

valid, timely application is filed. Be sure to let the Plan Administrator know if your address

changes.

Pension payments are reduced by any taxes the Plan is required to withhold under federal and

state laws.

The Plan must comply with tax laws and rules of the Internal Revenue Service (IRS). As

laws and regulations change, the Plan may change. If any provisions or changes materially

affect your retirement benefits, you’ll be notified.

3 7

The Plan Administrator makes every effort to ensure that pension payments are correct.

However, if any errors are made or later discovered, the Plan Administrator reserves the right

to correct them.

If the Plan is terminated, benefits payable under the Plan are limited to those that can be

provided by the assets of the Trust Fund and those that are guaranteed by the Pension Benefit

Guaranty Corporation (PBGC).

3 8

Section 8 — Definitions

A. Actuarial Value The actuarial value of a benefit to be paid as a lump sum is based on certain assumptions

about life expectancy and interest rates that may change from time to time, as may be

required by law. The interest rate used to determine lump sums is the October average of the

30-year Treasury rate for the year preceding the lump sum payment. The lump sum payment

does not include the value of any associated early retirement benefit.

B. Base Pay Base Pay is your fixed, basic, straight-time pay, including:

Pay you would have received while you were receiving sick leave pay;

Tax-deferred contributions to the qualified savings plan; and

Before-tax medical premiums, dependent care payments and health care spending account

payments.

C. Bendix Salaried Formula The portion of the Plan named the ―Provisions Relating to the Salaried Employees Pension

Plan of AlliedSignal Inc.‖.

D. Company The Company is Honeywell International Inc.

E. Compensation Compensation is Base Pay, plus:

Variable pay;

Lump sum wage increases;

Shift differential;

Overtime;

Commissions or sales payments;

Performance or reward and recognition awards paid in cash through payroll; and

Except as otherwise provided in the definition of Final Average Compensation, short-

term executive incentive compensation as approved by the Board of Directors in the year

earned not the year paid (Any pension benefit payable due to deferrals to the Company’s

Supplemental Savings Plan is paid from a non-qualified pension plan. These pension

benefits are not funded and are paid from the Company’s general corporate assets.)

3 9

Compensation does not include special payments. Examples of special payments include, but

are not limited to:

Retainer payments, inducement payments, completion bonuses, non-executive incentive

bonuses, or differential payments for overseas or on-location employment;

Relocation reimbursement;

Educational assistance;

Lump sum severance payments;

Lump sum vacation pay;

Hardship or overseas premiums;

Insurance benefits or Company-paid premiums;

Long-term disability pay;

Performance or reward and recognition awards not paid in cash through payroll

(regardless of whether such rewards are taxable income);

Patent and technical awards;

Profit sharing distributions and public or private retirement contributions or retirement

benefits;

Payments from any stock option plan and any savings and stock purchase plan;

Gain sharing; or

Per diem allowances and all other allowances or special remuneration.

The IRS limits the amount of annual Compensation a plan can take into account when

calculating benefits. For 2011, this limit is $245,000.

F. Credited Service Credited Service is used to calculate the dollar amount of your benefit under the Bendix

Salaried Formula. Credited Service is defined in Section 2 – How to Participate.

4 0

G. Dependent Child Your or your Spouse’s natural or adopted child who lives with you in a family relationship,

and who is:

Under age 19; or

Under age 25 if they are enrolled at an accredited school for at least 12 hours of credit per

semester. Proof that the child meets these requirements each fall and spring semester

must be provided.

Over age 19 (or age 25 if the child meets the requirements of the student definition

above) if the child is disabled because of an injury or disease that occurred before he or

she reached age 19 or 25, as applicable.

A child who is a ward of any state or governmental entity is not a Dependent Child.

H. Disabled If your first day of absence for medical reasons is on or after January 1, 2007, you are

Disabled if (i) you receive LTD Plan benefits from an Employer-sponsored plan for any

month before your Termination of Service, or (ii) if you are not eligible for LTD Plan

benefits from an Employer-sponsored plan, you receive Social Security disability benefits for

any month before your Termination of Service. This definition does not apply if your leave

of absence is the result of an injury covered by workers’ compensation or you are covered by

a collective bargaining agreement unless the collective bargaining agreement specifically

adopts this definition.

If your first day of absence for medical reasons is before January 1, 2007, or you do not

otherwise meet the definition above, you are considered Disabled if you provide medical

evidence satisfactory to the Plan Administrator that you have a physical or mental impairment

that:

Is expected to be permanent or result in death, and

Results in your being unable to engage in any occupation for which you are suited by

training and education.

You may be asked to submit proof of your continuing disability from time to time.

I. Employer The locations, business units, divisions and companies of the Company and its affiliates that

participate in the Bendix Salaried Formula for the benefit of their Eligible Employees.

J. Final Average Compensation Defined under Section 3 – How Your Benefit Is Determined.

4 1

J. Normal Retirement Age The later of your sixty-fifth (65th) birthday or the fifth (5th) anniversary of the date you

became a participant in this Bendix Salaried Formula or the prior plan. If you became a

participant in a prior plan before January 1, 1988, your Normal Retirement Age is your sixty-

fifth (65th) birthday.

K. Normal Retirement Date Your Normal Retirement Date is the first day of the month coincident with or next following

the date you have a Termination of Service on or after reaching your Normal Retirement Age.

L. Pension Choice A one-time irrevocable election extended to Honeywell employees covered by certain

pension plans to elect to be covered by the lump sum formula or to remain covered by their

―traditional‖ AlliedSignal or Honeywell pension formulas. For most participants, the Pension

Choice effective date was October 1, 2000.

M. Plan The Honeywell Retirement Earnings Plan.

N. Plan Administrator The Vice President – HR, Compensation & Benefits of the Company.

O. Protected Benefit The Protected Benefit is the minimum ―grandfathered‖ or ―frozen‖ benefit under the Old

Formula that must be compared to the benefits provided under the lump sum formula.

Employees receive the greater of the lump sum formula or the Protected Benefit under the

Old Formula. The benefit under the Old Formula was ―frozen‖ and became the Protected

Benefit on the date just before your election to participate in the Retirement Earnings Plan

became effective. You can never receive less than your Protected Benefit when you terminate

or retire. Your Protected Benefit is calculated using your Compensation and Credited Service

on your Pension Choice Effective Date.

P. Spouse Your legal opposite-sex spouse at the earlier of your BCD or your death. If a government

contracting law or regulation that applies to you requires you have the right to name your

domestic partner as a beneficiary or joint annuitant at your BCD, you will have that right.

However, only a legal opposite-sex spouse can receive the survivor benefits described in this

summary.

Q. Termination of Service The later of (i) the date your service with the Company and its affiliates ends in connection

with your death, retirement, resignation, or discharge, or (ii) the date on which your periodic

severance payments end (or twelve (12) months following your death, retirement, resignation

or discharge from the Company and its affiliates if you are covered by the Honeywell

International Inc. Severance Plan for Senior Executives).

4 2

R. Vesting Service Vesting Service is used to determine your eligibility for a benefit under the Bendix Salaried

Formula. Vesting Service is defined in Section 2 – How to Participate.

4 3

Section 9 — Other Plan Facts

A. Plan Cost and Trust Fund The Company pays the full cost of the Plan. It makes annual contributions in amounts

sufficient to meet the standards prescribed by the Employee Retirement Income Security Act

of 1974 (ERISA). The contributions are kept in a Trust Fund held by The Northern Trust

Bank (the Trustee); 50 South LaSalle Street; Chicago, Illinois 60675. The Trust Fund is

known as the Honeywell International Inc. Master Retirement Trust.

Certain administrative expenses relating to the Plan are paid by the Trust Fund.

The Company has no right to, or interest in, the contributions made to the Plan. However, if a

contribution is made by a mistake of fact, the contribution may be returned within one year

after payment of the contribution. In addition, to the extent that part or all of a contribution is

disallowed as a deduction under Internal Revenue Code Section 404, it may be returned

within one year after the disallowance.

B. Plan Sponsor and Administrator The Plan is a defined benefit plan sponsored and administered by Honeywell International

Inc. The Plan Administrator has the full discretionary authority and power to control and

manage all aspects of the Plan, to determine eligibility for Plan retirement benefits, to

interpret and construe the terms and provisions of the Plan, to determine questions of fact and

law, to direct disbursements, and to adopt rules for the administration of the Plan as may be

deemed appropriate in accordance with the terms of the Plan and all applicable laws.

The Plan Administrator may allocate or delegate its responsibilities for the administration of

the Plan to others and employ others to carry out or render advice with respect to its

responsibilities under the Plan, including discretionary authority to interpret and construe the

terms of the Plan, to direct disbursements, and to determine eligibility for Plan retirement

benefits.

Questions should be directed to the Plan Administrator. The address is:

Retirement Earnings Plan

Plan Administrator


101 Columbia Road

P.O. Box 1119


The telephone number is:

1-877-258-3699, option 5.

The person designated as the agent for service of legal process is the Secretary of Honeywell

International Inc., P.O. Box 2245, Morristown, New Jersey 07962. Legal process also may be

served on the Trustee.

4 4

The Employer Identification Number for Honeywell International Inc. is 22-2640650. The

plan number for this particular Plan is 201. Please use these identifying numbers when

inquiring about your retirement plan benefits.

C. Plan Year The records of the Plan are kept on a calendar-year basis. Each plan year ends on

December 31.

D. Limitations on Benefits Nothing in this SPD is intended to imply that participation in this Plan is a guarantee of

continued employment with the Company or its affiliates; nor is it a guarantee that benefit

levels will remain unchanged in future years.

Your vested benefit belongs to you and you cannot sell, transfer or assign it. However, under

certain circumstances, a court may award all or part of your benefit under the Plan to a present

or former spouse, child or other dependent through a ―qualified domestic relations order,‖ or

QDRO.

A QDRO is a court order, judgment or decree that:

Is made under a state domestic relations law (including community property laws);

Relates to child support, alimony payments or marital property rights; and

Creates or recognizes an alternate payee’s right to receive all or part of your benefits

under the Plan.

If you are affected by a QDRO, you or your attorney should contact the Plan’s QDRO

administrator at the address below to make sure the appropriate paperwork is filed.

Honeywell QDRO Processing Group

P.O. Box 1433

Lincolnshire, IL 60069-1433

If the QDRO so provides, your pension plan benefit as of a specific date may be divided. In

this instance, the alternate payee may be set up with a separate benefit in the Plan (as

applicable). The alternate payee will then be able to elect to begin receiving benefits, but no

sooner than the date on which you would be able to start receiving benefits if you left the

Company and its affiliates.

QDROs that do not specify immediate allocation of benefits at the date of divorce usually

include a formula for allocating benefits when you either leave the Company or reach

retirement age. If this is the case, your account will be flagged to indicate that a portion of

the total benefit earned will be paid at a later date to your alternate payee.

You and your beneficiaries can obtain, at no charge, a copy of the procedures governing

QDROs. Contact the Honeywell QDRO Processing Group for details.

4 5

E. Plan Amendment or Termination The Company hopes to continue the Plan indefinitely, but reserves the right to amend or

terminate it at any time for any reason. Also, the Company’s Board of Directors or a properly

authorized designee has the power to amend or terminate the Plan. If the Plan is terminated,

benefits will be paid in accordance with the requirements of the Pension Benefit Guaranty

Corporation (PBGC) and to the extent provided by the Trust Fund. No money in the Trust

Fund can be returned to the Company until all benefit obligations are met.

F. Pension Insurance Your pension benefits under the Plan are insured by the PBGC, a federal insurance agency. If

the Plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to

pay pension benefits. Most people receive all of the pension benefits they would have

received under their Plan, but some people may lose certain benefits.

The PBGC guarantee generally covers:

Normal and early retirement benefits;

Disability benefits if you become Disabled before the Plan terminates; and

Certain benefits for your survivors.

The PBGC guarantee generally does not cover:

Benefits greater than the maximum guaranteed amount set by law for the year in which

the Plan terminates;

Some or all of the benefit increases and new benefits based on Plan provisions that have

been in place for fewer than five years at the time the Plan terminates;

Benefits that are not vested because you have not worked long enough for the Company;

Benefits for which you have not met all of the requirements at the time the Plan

terminates;

Certain early retirement payments (such as supplemental benefits that stop when you

become eligible for Social Security) that result in an early retirement monthly benefit

greater than your monthly benefit at the Plan’s normal retirement age; or

Non-pension benefits, such as health insurance, life insurance, certain death benefits,

vacation pay and severance pay.

Even if certain of your benefits are not guaranteed, you may still receive some of those

benefits from the PBGC depending on how much money your Plan has and on how much the

PBGC collects from employers.

4 6

For more information about the PBGC and the benefits it guarantees, ask your Plan

Administrator or the PBGC. Inquiries to the PBGC should be addressed to:

PBGC

Technical Assistance Division

1200 K Street, N.W., Suite 930

Washington, D.C. 20005 – 4026

The PBGC can also be reached by calling 1-202-326-4000 (not a toll-free number).

TTY/TDD users may call the federal relay service toll-free at 1-800-877-8339 and ask to be

connected to 1-202-326-4000. Additional information about the PBGC’s pension insurance

program is available through the PBGC’s website on the Internet at: http://www.pbgc.gov.

G. Mergers, Consolidations or Transfers If the Plan is merged or consolidated with another plan or the assets and liabilities

attributable to your accrued retirement benefit are transferred to another plan, your benefit

under this Plan would be equal to at least the amount to which you would be entitled if the

Plan had been terminated just before the merger, consolidation or transfer.

H. Maximum Retirement Benefits The Internal Revenue Code limits the retirement benefits payable and the Compensation that

may be considered under defined benefit plans for highly compensated employees. If these

maximums affect you, you'll be notified.

4 7

Section 10 — ERISA

The following statement is required by federal law and regulation to be included in the SPD:

A. Statement of ERISA Rights As a participant in the Plan, you are entitled to certain rights and protections under the

Employment Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan

participants shall be entitled to:

Examine, without charge, at the Plan Administrator’s office and your local Human

Resources office, all Plan documents including, where applicable, copies of all

documents filed by the Plan with the U.S. Department of Labor, such as detailed annual

reports and Plan descriptions.

Obtain copies of all other Plan information upon written request to the Plan

Administrator. The Plan Administrator may make a reasonable charge for the copies.

Receive a summary of the Plan’s annual financial report. The Plan Administrator is

required by law to furnish each participant with a copy of the Summary Annual Report.

Obtain a statement telling you whether you have a right to receive a retirement benefit at

normal retirement age and, if so, what your retirement benefit would be at normal

retirement age if you stop working under the Plan now. If you do not have a vested right

to a pension, the statement will tell you how many more years you have to work to get a

vested right to a pension. This statement must be requested in writing to the Plan

Administrator; Retirement Earnings Plan; c/o Honeywell International Inc.; 101

Columbia Road; P.O. Box 1119; Morristown, New Jersey 07962-0119 and is not required

to be given more than once a year. The Plan must provide the statement free of charge.

In addition to giving rights to Plan participants, ERISA imposes duties upon the people who

are responsible for the operation of the Plan. The people who operate your Plan, called

"fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other

Plan participants and beneficiaries. No one, including your employer, or any other person,

may fire you or otherwise discriminate against you in any way to prevent you from obtaining

a retirement benefit or exercising your rights under ERISA. If your claim for a retirement

benefit is denied in whole or in part, you must receive a written explanation of the reason for

the denial. You have the right to have the Plan Administrator review and reconsider your

claim.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you

request materials from the Plan Administrator and do not receive them within 30 days, you

may file suit in a federal court. In such case, the court may require the Plan Administrator to

provide the materials and pay you up to $110.00 a day until you receive the materials, unless

the materials were not sent because of reasons beyond the control of the Plan Administrator.

4 8

If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit

in a state or federal court. In addition, if you disagree with the Plan’s decision or lack thereof

concerning the qualified status of a domestic relations order, you can file suit in a federal

court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are

discriminated against for asserting your rights, you may seek assistance from the U.S.

Department of Labor, or you may file suit in a federal court. The court will decide who

should pay court costs and legal fees. If you are successful, the court may order the person

you have sued to pay these costs and fees. If you lose, the court may order you to pay these

costs and fees (for example, if it finds your claim is frivolous).

If you have any questions about this Plan, you should contact Retirement and Pension

Benefits at 1-877-258-3699, option 5. If you have questions about this statement or about

your rights under ERISA, you should contact the nearest office of the Employee Benefits

Security Administration; U.S. Department of Labor, listed in your telephone directory or the

Division of Technical Assistance and Inquiries; Employee Benefits Security Administration;

U.S. Department of Labor; 200 Constitution Avenue N.W.; Washington, D.C. 20210. You

may also obtain certain publications about your rights and responsibilities under ERISA by

calling the publications hotline of the Employee Benefits Security Administration at 1-800-

998-7542.

This booklet contains a summary of the provisions of the Bendix Salaried Formula portion of

the Honeywell Retirement Earnings Plan in easy-to-understand terms. Complete details and a

description of all Plan provisions are included in the official Plan document. If there is ever a

conflict or inconsistency between this Summary Plan Description and the official Plan

document, an omission from the terms of this Summary, or any ambiguity in the terms used in

this SPD, the Plan document always will govern.

R_I

PENSION PARTICIPATION RULES FOR REHIRED EMPLOYEES OF HONEYWELL INTERNATIONAL INC. AND ITS AFFILIATES

1. Rehire Date Between January 1, 2013 and July 31, 2015: The following rules apply if

you were accruing a pension benefit under the Plan before your last active employment date and you are rehired by Honeywell International Inc. or a Honeywell affiliate after December 31, 2012 but before August 1, 2015:

a) If your rehire date occurs within 12 months of your last active employment date (not severance end date), you will participate in the same pension formula after your rehire date unless any of the following applies:

You were or are going to be a union employee; or

You are rehired by Honeywell Technical Services Inc. (HTSI) or Federal Manufacturing & Technology (“FM&T”); or

You are rehired by Universal Oil Products; or

You are rehired into an employee classification that does not otherwise participate in your pension formula.

NO EXCEPTIONS ARE MADE TO THIS RULE

b) If your rehire date occurs more than 12 months after your last active employment date (not severance end date), you will not accrue any additional defined benefit pension benefits in any pension formula after your rehire date (that is, you will not receive credit for future service or future earnings for benefit calculation purposes). You will only receive credit for future service for vesting and early retirement eligibility purposes in benefits previously earned. NO EXCEPTIONS ARE MADE TO THIS RULE.

c) If you were not accruing a pension benefit before your last active employment date and you are rehired by Honeywell International Inc. or a Honeywell affiliate, you will not accrue defined benefit pension benefits in any pension formula after your rehire date (that is, you will not receive credit for future service or future earnings for benefit calculation purposes), regardless of the amount of time between your last active employment date and your rehire date. NO EXCEPTIONS ARE MADE TO THIS RULE.

2. Rehire Date After July 31, 2015: If you were accruing a pension benefit under the Plan before your last employment date and you are rehired by Honeywell International Inc. or a Honeywell affiliate after July 31, 2015, you will not accrue any additional defined benefit pension benefits in any pension formula after your rehire date (that is, you will not receive credit for future service or future earnings for benefit calculation purposes). This rule applies regardless of why your prior employment was terminated and/or the amount of time between your last employment date or severance end date and your rehire date. NO EXCEPTIONS ARE MADE TO THIS RULE. Your future Honeywell employment will be recognized for vesting service purposes only. This additional vesting service may allow you to grow into a vested, early, unreduced, or normal retirement benefit under your prior pension formula, if any.

R_I

ADDITIONAL INFORMATION ABOUT YOUR PENSION PLAN

OFFICIAL PLAN NAME Honeywell Retirement Earnings Plan PLAN SPONSOR NAME Honeywell International Inc. EMPLOYER IDENTIFICATION NUMBER 22-2640650 PLAN NUMBER 201

HOW DO I…? Request pension benefit information or a

benefit estimate Request a pension commencement package

Request a new password

Update my personal information (e.g., mailing

address, telephone number, email address, marital status)

Access the Your Benefits Resources™ website through the Honeywell Intranet or at http://resources.hewitt.com/honeywell.

You may also call the Honeywell Retirement Service Center at 1-877-258-3699, option 5. Active employees use option 4 to update personal information.

Report the death of a retired or terminated participant, surviving spouse, or beneficiary

Call the Honeywell Retirement Service Center at 1- 877-258-3699, option 5.

Send a required form or requested information, or respond to correspondence from the Honeywell Retirement Service Center**

Send the completed form, requested information, or response only to the address specified in the correspondence.

Disagree with a decision that’s been made regarding my pension benefits* **

Send a written statement with all supporting documentation to the following address:

Honeywell International Inc. Attn: Pension Plan Administrator 115 Tabor Road 4th Floor, Terminal B (Zones 2-4) Morris Plains, NJ 07950

Send a domestic relations order or other legal paperwork related to a domestic relations order, or obtain copies of the Plan’s QDRO Procedures**

Send the correspondence to the following address: Attention: Honeywell Qualified Order Team P.O. Box 1433 Lincolnshire, IL 60069-1433

Fax: (847) 883-9313 (draft domestic relations orders only)

Submit any other mail to the Plan that is not described above (e.g., income verification requests, potential private pension statements)**

Send the correspondence to the following address: Honeywell Retirement Service Center P.O. Box 1525 Lincolnshire, IL 60069-1525

*Do not use this address if you are a union employee employed at the South Bend, Green Island, Boyne City, or Kansas City- FM&T sites. **To ensure timely receipt and processing, please do not send correspondence that requires a response to any other Honeywell or Aon Hewitt address.

Bendix

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NOTICE OF REDUCTION IN RATE OF FUTURE BENEFIT ACCRUALS

ILLUSTRATION OF THE IMPACT ON SAMPLE PARTICIPANTS IN THE BENDIX FORMULA

Honeywell International Inc. has amended the Bendix Formula to freeze Final Average Compensation as of December 31, 2015. Your Final Average Compensation will not change after December 31, 2015, except possibly as a result of including certain short-term executive incentive compensation earned in 2015 but paid in 2016. This legally-required Notice has two sections. This Illustration Section includes examples showing the expected impact of the Plan Changes on sample participants in the Bendix Formula. The Plan Terms Section describes the Bendix Formula as of the Compensation Freeze Date, the effect the Plan Changes could have on your benefits, and the Bendix Formula after the Compensation Freeze Date. Capitalized terms are defined in the Plan Terms Section. The following charts illustrate how the Plan Changes will affect monthly benefits of sample participants in the Bendix Formula. While these examples show how the benefit will change for participants with average Final Average Compensation, the impact of the Plan Changes will be similar at other Final Average Compensation levels. _____________________________________________________________________________________ Sample Participant I (as of December 31, 2015):

• Age: 50 • Years of Credited Service: 22 • Final Average Compensation: $112,000 annually

Age at Termination

Date

Monthly Benefit Amounts

January 1, 2016 Earned Benefit No Freeze Pay Freeze Only

Monthly Benefit

SS Supplement

Monthly Benefit SS Supplement Monthly

Benefit SS

Supplement Age 55 $2,258 $822 $3,005 $936 $2,636 $934 Age 62 $3,019 0 $5,104 0 $3,826 0 Age 65 $3,052 0 $5,829 0 $4,029 0

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Sample Participant II (as of December 31, 2015): • Age: 57 • Years of Credited Service: 29 • Final Average Compensation: $112,000 annually

Age at Termination

Date



Monthly Benefit

SS Supplement

Monthly Benefit SS Supplement Monthly

Benefit SS

Supplement Age 57 $2,829 $957 $2,829 $957 $2,829 $957 Age 62 $3,597 0 $4,311 0 $3,816 0 Age 65 $3,641 0 $4,907 0 $4,015 0

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Sample Participant III (as of December 31, 2015): • Age: 65 • Years of Credited Service: 37 • Final Average Compensation: $112,000 annually

Age at Termination

Date



Age 65 $3,997 $3,997 $3,997 Age 66 $4,017 $4,171 $4,065 Age 67 $4,030 $4,349 $4,127

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Assumptions and Information:

• For Sample Participants I and II, each column is broken into sub-columns that are headed “Monthly Benefit” and “SS Supplement.” The Monthly Benefit amount is the annuity amount payable for the sample participant’s lifetime. The SS Supplement is the additional monthly amount paid until the sample participant reaches age 62 if he retires before age 62 and is equal to the Social Security benefit offset under the Basic Formula. Once the sample participant reaches age 62, he will stop receiving the SS Supplement and will only receive the Monthly Benefit.

• The column titled “January 1, 2016 Earned Benefit” shows the benefit earned by the sample participant as of January 1, 2016 using the Bendix Formula as of December 31, 2015 with Final Average Compensation and Credited Service frozen as of December 31, 2015. The amounts in this column are for illustration purposes only and do not reflect the Plan Changes.

• The column titled “No Freeze” shows the benefit amounts using the Bendix Formula as of December 31, 2015 with no future changes and the following assumptions:

o a 2% annual increase in Final Average Compensation, and o a 0.5% annual increase in the Social Security Benefit.

• The column titled “Pay Freeze Only” shows the benefit amounts using the Bendix Formula with the Plan

Changes.

• All amounts were calculated assuming: o for the “No Freeze” and “Pay Freeze Only” columns, the participant earns Credited Service under the

Bendix Formula until the earlier of his/her termination date or the date he/she earns the maximum amount of Credited Service under the formula; and

o for the “January 1, 2016 Earned Benefit” column, the participant earns vesting service only under the Bendix Formula until his/her termination date; and

o the participant begins receiving his/her pension benefit at the earliest possible date following termination; and

o no offsets apply to the participant’s benefit.

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NOTICE OF REDUCTION IN RATE OF FUTURE BENEFIT ACCRUALS BENDIX FORMULA PLAN TERMS

Honeywell International Inc. has amended the Bendix Formula by freezing Final Average Compensation as of December 31, 2015 (the “Compensation Freeze Date”).1 This legally-required Notice has two sections, the Illustration Section and this Plan Terms Section. The Bendix Formula amendments described in this Notice are collectively referred to as the “Plan Changes.” You will continue to be eligible for the benefits you earned as of the Compensation Freeze Date (subject to the Bendix Formula’s vesting and eligibility requirements) and you may continue to earn additional benefits under the Bendix Formula for your Credited Service after the Compensation Freeze Date.

PARTICIPANTS COVERED BY THIS NOTICE You are a “covered participant” for purposes of this Notice if you are earning benefits under the Bendix Formula as of the Compensation Freeze Date. If you believe you received this Notice in error, please contact the Honeywell Service Center at 1-877-258-3699, option 5.

BENEFITS EARNED AS OF THE COMPENSATION FREEZE DATE Under the Bendix Formula in effect as of the Compensation Freeze Date, your monthly normal retirement benefit that is payable starting on your Normal Retirement Date in the form of a single life annuity and is calculated using two formulas, referred to as the “Basic Formula” and the “Minimum Formula.” The benefits determined under each formula are compared and you receive the larger amount. Basic Formula Your monthly benefit under the Basic Formula equals:

2.0% of your Final Average Compensation multiplied by your Credited Service up to 25 years

PLUS

0.5% of your Final Average Compensation multiplied by your

Credited Service over 25 years

MINUS 2.0% of your Social Security Benefit

multiplied by your Credited Service up to 25 years

Minimum Formula Your monthly benefit under the Minimum Formula equals:

0.75% of your Final Average Compensation plus $8.00 TIMES Your Credited Service up to 30

years Postretirement Death Benefit The Bendix Formula provides a postretirement lump sum death benefit equal to 180% of your Final Average Compensation if you terminate employment with Honeywell and its affiliates after reaching your Normal Retirement Age or your early retirement age, or retiring on a disability benefit date (as defined in the Bendix Formula). This death

1 A special rule discussed in the Appendix under the Compensation definition applies to certain short-term executive incentive compensation amounts earned in 2015 but paid in March 2016 under the Honeywell Management Incentive Plan or the Honeywell International Inc. Incentive Compensation Plan for Executive Employees.

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benefit is subject to reduction if you transferred from another pension formula or plan, have fewer than 10 years of Credited Service, or retire after transferring to an affiliate. This death benefit is not available if you terminate employment with Honeywell and its affiliates before your early retirement age. Please refer to the Appendix at the end of this Plan Terms Section for definitions and important information about adjustments that may apply to your benefit calculation.

EFFECT OF THE PLAN CHANGES After the Compensation Freeze Date, you may continue to accrue additional benefits under the Bendix Formula as you earn additional Credited Service, but your Final Average Compensation will be determined as of the Compensation Freeze Date and it will not change after that date, except possibly as a result of including certain short-term executive incentive compensation earned in 2015 but paid in 2016. Your benefit will be calculated under the following formulas that take the Plan Changes into account. The benefits determined under each formula are compared and you receive the larger amount. Basic Formula Your monthly benefit under the Basic Formula after the Compensation Freeze Date equals:

2.0% of your Final Average

Compensation determined as of the Compensation Freeze Date

multiplied by your Credited Service up to 25 years

PLUS

0.5% of your Final Average Compensation determined as of the Compensation Freeze Date

multiplied by your Credited Service over 25 years

MINUS

2.0% of your estimated Social Security Benefit

determined by freezing various elements at 2015 levels multiplied by your Credited Service up to 25

years

Minimum Formula Your monthly benefit under the Minimum Formula after the Compensation Freeze Date equals:

0.75% of your Final Average

Compensation determined as of the Compensation Freeze Date plus

$8.00 TIMES Your Credited Service up to 30

years

Postretirement Death Benefit The Bendix Formula provides a postretirement lump sum death benefit equal to 180% of your Final Average Compensation determined as of the Compensation Freeze Date if you terminate employment with Honeywell and its affiliates after reaching your Normal Retirement Age or your early retirement age, or retiring on a disability benefit date (as defined in the Bendix Formula). This death benefit is subject to reduction if you transferred from another pension formula or plan, have fewer than 10 years of Credited Service, or retire after transferring to an affiliate. This death benefit is not available if you terminate employment with Honeywell and its affiliates before your early retirement age. Please refer to the Appendix at the end of this Plan Terms Section for definitions and important information about adjustments that may apply to your benefit calculation.

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EFFECT OF PLAN CHANGES ON YOUR BENEFIT You should review the Illustration Section of the Notice. The examples contained in the Illustration Section show how the Plan Changes will affect future benefit accruals under the Bendix Formula for participants at different ages and with different years of Credited Service as of the Compensation Freeze Date. By referring to the example with the participant who is most like you in terms of age and Credited Service, you can approximate the degree to which your projected benefit will change as a result of the Plan Changes. Although the examples use an average Final Average Compensation amount for participants in the Bendix Formula, the shape of the graph is similar at other pay levels. Although the participants featured in the Illustration Section reflect the characteristics of many Bendix Formula participants, the examples are not meant to show the effect of the Plan Changes under every possible scenario. You can log on to the Your Benefits Resources™ website available through the HR Direct page on the Honeywell Intranet or at http://resources.hewitt.com/honeywell to obtain personal benefit estimates using different assumptions. If you cannot access the website, contact the Honeywell Service Center at 1-877-258-3699, option 5, between 9 a.m. and 6 p.m., Eastern time, Monday through Friday, excluding holidays. For a faster response time, we strongly encourage you to use the website for personal estimates if it is available to you. You can also view an estimate of your pension benefit with the Plan Changes by logging on to HR Direct through the Honeywell Intranet, then the My Total Rewards Quick Link, and clicking on the “View Your Current Total Rewards Statement.” Estimates using personal data as of June 30, 2015 can be found under the heading “Honeywell’s Retirement Investment.” The most significant factor in determining the effect that the Plan Changes will have on your Bendix Formula benefit is the amount of time you remain employed with Honeywell between the Compensation Freeze Date and your termination date. For example, if you expect to work for Honeywell for a few additional years or have a small increase in Final Average Compensation after the Compensation Freeze Date, you should expect the Plan Changes to affect your final Bendix Formula benefit to a lesser degree. If you expect to work for Honeywell for many more years or have a large increase in Final Average Compensation after the Compensation Freeze Date, you should expect the Plan Changes to affect your final Bendix Formula benefit to a greater degree.

ADDITIONAL INFORMATION

Other Documents Available. This Notice explains the effect of the Plan Changes on the Bendix Formula. Although this Notice summarizes a variety of Bendix Formula features, it does not fully describe the details. Those details, including applicable limits and exclusions, are described more completely in the Bendix Formula summary plan description (SPD) and the applicable plan documents. If you would like a copy of the SPD for the Bendix Formula or the applicable plan documents, please contact the Honeywell Service Center at 1-877-258-3699, option 5, between 9 a.m. and 6 p.m., Eastern time, Monday through Friday, excluding holidays. This Notice is not intended to create any rights or benefits that are not provided under the Bendix Formula terms. If there are conflicts between this Notice and the plan documents, the plan documents will control. The Plan administrator reserves the right to correct participant data at any time and your Plan information, including but not limited to your Final Average Compensation, may change after the Compensation Freeze Date as a result. Benefits under non-tax qualified pension plans sponsored by Honeywell or an affiliate. Changes similar to the Plan Changes apply to any benefit you are entitled to receive from a non-tax qualified pension plan sponsored by Honeywell or an affiliate. You may be entitled to such a benefit if, during one or more of the years that are part of your Final Average Compensation period, you deferred salary or bonus under the Honeywell Supplemental Savings Plan or the Honeywell Deferred Incentive Compensation Plan, or you exceeded pay or benefit limitations set by the Internal Revenue Service. For purposes of calculating any non-tax qualified pension plan benefit, Final Average Compensation will be calculated as of the Compensation Freeze Date and will not change in the future, except possibly as a result of including certain short-term executive incentive compensation earned in 2015 but paid in 2016.

http://resources.hewitt.com/honeywell

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Future Plan Amendments. Honeywell International Inc. reserves the right to amend or terminate the Bendix Formula and/or the Plan in its sole discretion at any time for any reason. Specifically, nothing in this Notice, the Bendix Formula, or the Plan guarantees your right to continued benefit accruals after the Compensation Freeze Date.

This Notice is provided as required by section 204(h) of the Employee Retirement Income Security Act of 1974, as amended, and section 4980F of the Internal Revenue Code of 1986, as amended. This Notice is also a summary of material modifications for the described amendments. This Notice changes the information in the Bendix Formula SPD and should be kept for future reference. If you have any questions regarding this Notice, please contact the Honeywell Service Center at 1-877-258-3699, option 5.

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APPENDIX DEFINITIONS AND CALCULATION ADJUSTMENTS

The following definitions apply to this Notice:

• “Bendix Formula” means the Provisions Relating to the Salaried Employees Pension Plan of AlliedSignal Inc. (Supplement A) portion of the Plan.

• Your “Compensation” for a calendar year generally includes the following amounts paid to you by a participating employer such as Honeywell for your employment as a covered participant during that calendar year: (1) base pay (determined before subtracting your contributions to Honeywell’s 401(k) plan or cafeteria plan but after subtracting other deferred amounts), (2) sick pay, (3) shift pay differential, (4) overtime pay, (5) commissions or sales payments, (6) certain short-term executive incentive compensation, (7) certain variable pay, lump-sum wage increases, and recognition awards paid through payroll, and (8) periodic severance pay or accrued vacation pay (generally up to 12 months). If you return to work after a period of uniformed military service for which your reemployment rights are protected by federal law, your “Compensation” will also include the “Compensation” you would have received but for the absence. Your “Compensation” does not include compensation not listed above and may not exceed the annual compensation limit set forth in the Internal Revenue Code for each calendar year ($265,000 for 2015). No amounts earned or paid will be considered Compensation after the Compensation Freeze Date, except that any bonus amounts you earn in 2015 but are paid in March 2016 under the Honeywell Management Incentive Plan or the Honeywell International Inc. Incentive Compensation Plan for Executive Employees will be included in your 2015 Compensation solely for purposes of calculating the highest 60 out of the last 120 months portion of your Final Average Compensation.

• “Compensation Freeze Date” means December 31, 2015.

• Your “Credited Service” generally equals the sum of (1) your Credited Service under the Salaried Employees Pension Plan of AlliedSignal Inc. as of December 31, 1999, and (2) your full years and days of service after December 31, 1999 as a covered participant under the Bendix Formula, generally including any period of approved leave and any period before you became a Bendix Formula participant (subject to certain limitations) but excluding any period during which you do not (or did not) meet the eligibility requirements of the Bendix Formula, and (3) any period after December 31, 1999 during which you receive periodic severance pay or accrued vacation pay (generally up to 12 months) from Honeywell, and (4) any period of absence from employment as a covered participant for uniformed military service provided that you return to work within the time your reemployment rights are protected by federal law.

• Your “Final Average Compensation” generally equals the larger of (1) the sum of your Compensation received for the five complete calendar years beginning after 1965 that produces the highest total, divided by 60, or (2) the highest monthly average of your Compensation received for the 60 consecutive full calendar months out of your last 120 calendar months before termination of service, with certain short-term executive incentive compensation included in the year earned. Months in which you received no Compensation are ignored and an average is determined over the calendar months in which you received Compensation if you have fewer than five complete calendar years or 60 full calendar months of Compensation. Your Final Average Compensation will be calculated as of the Compensation Freeze Date and will not change after that date (except possibly as a result of including certain short-term executive incentive compensation earned in 2015 but paid in 2016 solely for purposes of calculating the highest 60 out of the last 120 months portion of your Final Average Compensation). If you are a covered participant who is not actively at work or who is not otherwise being credited with Compensation on December 31, 2015, your Final Average Compensation will not change after the Compensation Freeze Date and no amounts earned, paid, or deemed earned or paid after the Compensation Freeze Date will be recognized under the Bendix Formula, except possibly as a result of including certain short-term executive incentive compensation earned in 2015 but paid in 2016 (if applicable).

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• Your “Normal Retirement Date” is the first day of the month after you reach the later of your 65th birthday or the fifth anniversary of Bendix Formula participation.

• “Notice” means this legally-required Notice of Reduction in Rate of Future Benefit Accruals, which has two sections. The section titled “Illustration of the Impact on Sample Participants in the Bendix Formula” (the “Illustration Section”) includes illustrations showing the expected impact of the Plan Changes on sample participants in the Bendix Formula. This “Plan Terms Section” describes the Bendix Formula as of the Compensation Freeze Date, the effect the Plan Changes could have on your benefits, and the Bendix Formula after the Compensation Freeze Date.

• “Plan” means the Honeywell Retirement Earnings Plan.

• Your “Social Security Benefit” is the estimated monthly Social Security benefit you could receive starting at the later of age 65 or your termination date determined based on the assumptions set forth in the Bendix Formula. The Bendix Formula will use the actual earnings that are used to calculate your Social Security benefit if you obtain an earnings report from the Social Security Administration and provide it to the Plan within 90 days of receiving a notice informing you of this option. For purposes of calculating the Social Security Benefit after the Compensation Freeze Date, the following elements will be used: 2015 Social Security law year, 2015 Final Average Compensation for pay regression, and 2015 method for determining national average earnings. The assumption as to future earnings will not change: the Bendix Formula will continue to use level future earnings if you are not eligible for early retirement benefits at termination or zero future earnings if you are eligible for early retirement benefits at termination.

Calculation Adjustments. The benefit calculation described above is subject to the following adjustments (if they apply to you):

• Adjustment for Transferred Employees. If you transferred employment and have been covered by a retirement

plan or formula other than the Bendix Formula while employed by Honeywell, your benefit may be adjusted to account for the benefits you earned under the other plan or formula. Please refer to the supplemental letter you received describing how your benefit under the applicable formulas will be calculated. If you believe you were covered under another Honeywell retirement plan or formula before or after a transfer and did not receive a supplemental letter, please contact the Honeywell Service Center at 1-877-258-3699, option 5 for more information.

• Adjustment for Prior Lump Sum. If you terminated employment, received a lump sum payment of your Bendix Formula accrued benefit, and were later rehired, your Credited Service and Compensation are measured from your date of rehire if you participate in the Bendix Formula after rehire.

• Offset for Certain Account Balances. If you have an account balance in the AlliedSignal Chula Vista Defined Contribution Plan or the AlliedSignal Technical Services Inc. Master Income Security Plan, your Bendix Formula benefit is reduced by the actuarial equivalent of the value of your account balance.

• Adjustment for Payment After Normal Retirement Date. If you terminate employment and start to receive payment of your Bendix Formula benefit after your Normal Retirement Date, your benefit may be actuarially adjusted to reflect the delay in payment. No actuarial increase is provided if you remain employed after your Normal Retirement Date, and pension payments start immediately after termination of employment.

• Adjustment for Payment Before Normal Retirement Date (Termination After Reaching Early Retirement Age). If you terminate employment with Honeywell and its affiliates after reaching early retirement age but before age 65, you are eligible for an early retirement benefit. You can elect a benefit start date that is the first day of any month after your termination of employment and before your Normal Retirement Date. Your early retirement benefit paid on a benefit start date before your Normal Retirement Date is reduced because it will be paid over

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a longer period of time. How large the reduction will be depends on your age and service at termination of employment and your age on your benefit start date:

Regular Early Retirement. If, on your termination date, you are age 55 or older, you have completed at least five years of vesting service, and your age plus years of vesting service total less than 80, you qualify for regular early retirement. The reductions applied to calculate your regular early retirement benefit are determined based on the benefit start date you choose, as follows: — The Final Average Compensation portion of your Basic Formula benefit is reduced by 1/6 of 1% for

each of the first 60 months that your benefit start date precedes the first of the month following your 65th birthday, plus 1/3 of 1% for each month in excess of 60. The Social Security benefit offset portion of the Basic Formula is reduced for early payment using the Social Security Administration’s early payment reduction factors (but only for payments made after age 62 and based on the applicable reduction factors as of the later of age 62 or your benefit start date).

— Your Minimum Formula benefit is reduced by 6/10 of 1% for each of the first 60 months that your

benefit start date precedes the first of the month following your 65th birthday, plus 4/10 of 1% for each month in excess of 60.

80-Point Early Retirement. If your age plus years of vesting service on your termination date total 80 or more, you qualify for 80-point early retirement. The reductions applied to your Basic Formula benefit for 80-point early retirement are the same as those described above for regular early retirement, except that the reduction on the Final Average Compensation portion of the benefit will not exceed 25%. Your Minimum Formula benefit for 80-point early retirement will be unreduced for commencement before age 65 and, for payments in months before you reach age 62, will be increased by a monthly supplement of $385. If you are eligible to receive the monthly supplement before age 62 and you are credited with vesting service with another employer, you transferred from another plan, or your Credited Service under the Bendix Formula does not include your credited service under a prior plan, the value of the supplement will be determined by multiplying $385 by the ratio of your Credited Service to your vesting service. Benefit Start Before Age 62. If your benefit start date occurs before age 62, the Social Security Benefit offset is not applied under the Basic Formula before you reach age 62. You will receive the largest pre-age 62 benefit and the largest post-age 62 benefit calculated under the Basic or Minimum Formula.

• Adjustment for Payment Before Normal Retirement Date (Termination Before Reaching Early Retirement Age). If you terminate employment with Honeywell and its affiliates before reaching early retirement age and you have completed at least five years of vesting service (or have otherwise become vested under Bendix Formula terms), you are eligible for a vested benefit. Your vested benefit payable as a single life annuity starting on your Normal Retirement Date is determined under the Basic and Minimum Formulas as described above:

— using the Credited Service you would have earned if you had continued to be an active participant until

your Normal Retirement Date; — estimating your Social Security Benefit assuming your Final Average Compensation will remain constant

to your Normal Retirement Date but with the changes described in “Social Security Benefit” above; and

— multiplying the benefit amount by the ratio of your actual Credited Service at termination to the Credited

Service you would have earned if you had continued to be an active participant until your Normal Retirement Date.

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If you have completed at least five years of vesting service, you can elect a benefit start date for your vested benefit that is the first day of any month after you reach your early retirement age and before your Normal Retirement Date. Your early retirement age is the earlier of age 55 or the age at which your age plus years of vesting service total 80. However, your benefit payable on that earlier benefit start date will be reduced to reflect the longer period of time over which payment will be made. How large that reduction will be depends on your age when you terminated employment and on your benefit start date:

— If you terminated employment after age 50 and your Bendix Formula benefit is determined by the Basic

Formula, your vested benefit is reduced by 1/6 of 1% for each of the first 60 months that your benefit start date precedes the first of the month coinciding with or next following your Normal Retirement Age, plus 1/3 of 1% for each month in excess of 60.

— If you terminated employment at or before age 50, your vested benefit is reduced by 6/10 of 1% for

each of the first 60 months that your benefit start date precedes the first of the month following your Normal Retirement Age, 1/2 of 1% for each of the next 60 months, and 1/6 of 1% for each month in excess of 120.

An immediate lump-sum payment option applicable for benefits valued at $10,000 or less at employment termination is described in the SPD.

• Adjustment for Elected Form of Payment. If you elect to receive payment of your Bendix Formula benefit in a form of payment other than a single life annuity, your single life annuity benefit will be adjusted to reflect your elected form of payment. This is in addition to any adjustment for payment before or after your Normal Retirement Date.