Honeywell will eliminate the retiree medical subsidy for current
employees.This change affects about 15 percent of Honeywell employees
who were hired before January 1, 2000, and elected to remain in the
legacy Honeywell legacy
Allied Signal pension plans . Employees in the UOP pension plan are
also affected by this change.
Specific changes to retiree medical coverage include:
Honeywell will no longer subsidize retiree medical coverage for
employees who retire after September 1, 2009.
Employees already retired or who retire on or before September 1,
2009, will not be affected.
Honeywell plans to provide access to group insurance at competitive
company rates for pre-65 retiress who leave the company after
September 1. The company's group coverage rate is generally less
expensive than individual coverage currently available in the
marketplace and can help employees under the age 65 bridge the gap
until they are eligible for other opitions through Medicare.
Retired employees who are eligible for retire medical coverage must
enroll on or before September 1, 2009, and maintain their coverage or
else they will permenently foreit the benefit. Please be aware that
employees must initiate the retirement process by July 31,2009, in
order to retire on or before September 1, 2009.

Mark James   Senior Vice President    Human Resources and
Communications    Honeywell