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Honeywell Retirement Earnings Plan

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Honeywell Retirement Earnings Plan 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. 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. 3 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. 4 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 You are rehired as an You will participate in the Bendix Salaried Formula Eligible Employee within Bendix Salaried Formula before your Termination of 12 months of the later of following your rehire date Service your last day of active employment with the Employer, or the end of the notice period under any Employer-sponsored severance plan You participated in the You are rehired as an You will participate in the Bendix Salaried Formula Eligible Employee after 12 lump sum formula or the before your Termination of months of the later of your formula applicable to that Service last day of active location, if any, following employment with the your rehire date; your post- Employer, or the end of the rehire employment will be notice period under any recognized only for vesting Employer-sponsored and eligibility purposes severance plan 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. 5 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
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