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My Health My Wealth My Life



INSPIRED

INVOLVED

INFORMED

Carrier Hamilton Sundstrand Otis Pratt & Whitney Sikorsky UTC Fire & Security UTC Power UTRC

Your UTC Savings Plan Transition Kit

2010-2011

Important Notice About Your Rights Under the UTC Savings Plan

Transitioning the records of your UTC Savings Plan account from Fidelity to Aon Hewitt will take several days. During this time, called the “blackout period,” you will be temporarily unable to direct or diversify your investments, change your contribution or investment elections, obtain a loan, request a partial withdrawal or full distribution or make other requests associated with the Savings Plan. During the blackout period, Savings Plan assets will remain fully invested and will be subject to market gains and losses.

As shown on the chart below, the blackout period will begin at 4:00 p.m. Eastern Time (ET) on December 30, 2010, and is expected to end on January 5, 2011, at 8:00 a.m. ET. Since you will be unable to direct or diversify investments in your Savings Plan account during the blackout period, it’s important that you review and consider the appropriateness of your current investments before the blackout period begins. For your long-term retirement security, you should always give careful consideration to the importance of a well-diversified investment portfolio, taking into account your investments inside and outside of the Savings Plan. As discussed on page 13, single stock funds such as the UTC Common Stock Fund/ESOP tend to have wider price swings in shorter periods of time than investments in diversified funds. This is often referred to as investment volatility and it increases the risk of market value fluctuations during the blackout period.

Note that as of the date this book went to print, Aon Corporation, a large financial services organization, has entered into an agreement to acquire Hewitt Associates. This change in ownership will have no impact on the UTC Savings Plan.

The transition of your UTC Savings Plan account from Fidelity to Aon Hewitt will begin on December 30, 2010, at 4:00 p.m. Eastern Time (ET) and is expected to end on January 5, 2011, at 8:00 a.m. ET. Here is an overview of what’s happening when. Use the Blackout Period At-A-Glance insert enclosed in this pocket for details.

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

DECEMBER 2010JANUARY 2011

28 29 30 31 1

2 3 4 5 6 7 8

BLACKOUT PERIOD4 P.M. ET

LAST DAY TO PERFORM FINANCIAL TRANSACTIONS AT

FIDELITY

TRANSITION COMPLETE!ACCESS YOUR UTC

SAVINGS PLAN ACCOUNT AT AON HEWITT

LAST DAY TO PERFORM NON-FINANCIAL

TRANSACTIONS AT FIDELITY

BLACKOUT PERIOD 8 A.M. ET

Blackout Period At-A-Glance




INSPIRED

INVOLVED

INFORMED

BEFORE the blackout period begins, decide if you want to make changes to your UTC Savings Plan account:

■ Before 4:00 p.m. ET, Monday, December 13, 2010 Last day to make a loan payment via ACH.

■ On or around Wednesday, December 15, 2010 If you have a balance in the Savings Plan, and

don’t have a password currently on file with Aon Hewitt, you will receive a temporary password and login instructions in the mail at your home address. Once the blackout period ends, you’ll need this information to access your Savings Plan account from home (or from any computer using the internet). Active employees don’t need this information to access their accounts through Employee Self-Service (ESS).

■ Before 4:00 p.m. ET, Friday, December 17, 2010 Request an in-kind distribution from the UTC Common Stock Fund/ESOP.

■ Before 4:00 p.m. ET, Thursday, December 30, 2010 — Make an investment exchange — Change future investment elections — Make a rollover contribution — Make a loan payment via coupon book — Initiate a loan, if eligible — Designate or change a beneficiary — Request a partial withdrawal or full distribution,

if eligible

Any mail that Fidelity receives after December 30, 2010, will be returned to you.

■ Before 4:00 p.m. ET, Friday, December 31, 2010 — Change your contribution rate — Make or change an automatic increase election

DURING the blackout period, you can’t make any changes. Here’s what will be happening behind the scenes:

■ At 4:00 p.m. ET, Friday, December 31, 2010 Fidelity will calculate final account balances and

begin to transfer all accounts to Aon Hewitt.

■ Your investments will be subject to market gains and losses. The Income Fund will continue to credit interest daily.

AFTER the blackout period, you can:

■At 8:00 a.m. ET, Wednesday, January 5, 2011

VISIT: Your Gateway via the internet at www.mydirectory.com/utc or through Employee Self-Service (ESS)

All Savings Plan participants can access Your Gateway via the internet. Only active employees can access Your Gateway via ESS.

If you access Your Gateway via the internet, you’ll be asked to enter your User ID and Password, which is the same User ID and Password active employees use to enroll in their health and insurance benefits during Annual Enrollment.

— If you don’t have a User ID and Password, refer to the temporary password and login instructions you receive in your home mail from Aon Hewitt on or around December 15.

— If you need to reset your User ID and/or Password, follow the online prompts to Register as a New User and select I Forgot My Password or call AccessDirect.

CAll: AccessDirect at 1-800-243-8135 and follow the Retirement & Investments prompts to reach the UTC Benefits Center. Representatives are available Monday through Friday from 8:00 a.m. to 9:00 p.m. ET.

WRITE: UTC Benefits Center 100 Half Day Road P.O. Box 1461 Lincolnshire, IL 60069-1461

■Before midnight on January 4, 2011 VISIT: www.netbenefits.com

CAll: AccessDirect at 1-800-243-8135 and follow the Retirement & Investments prompts. Representatives are available Monday through Friday from 8:30 a.m. to midnight ET, except when the New York Stock Exchange is closed.

WRITE: Participant Service Center P.O. Box 770003 Cincinnati, OH 45277-0065

1. 2. 3.

There is no action you need to take — you can choose to leave your current investments just as they are. Or, you may decide that you want to change your current investments before December 30, 2010, at 4:00 p.m. ET so they will map to the investment(s) you want when the new investment lineup takes effect.

This Transition Kit will help guide you through the three phases of the blackout period — before, during and after — and what you should keep in mind for each of the phases.

Please refer to the Blackout Period At-A-Glance insert in the front pocket of this book for details about what you can do and when.

Questions?THROUgH JANUARY 4, 2011 ON OR AFTER JANUARY 5, 2011

Visit: www.netbenefits.com

Call: AccessDirect at 1-800-243-8135 and follow the Retirement & Investments prompts. Representatives are available Monday through Friday from 8:30 a.m. to midnight Eastern Time (ET), except when the New York Stock Exchange is closed.

Write: Participant Service Center P.O. Box 770003 Cincinnati, OH 45277-0065

Note that any mail that Fidelity receives after December 30, 2010, will be returned to you.

Visit: Your Gateway via the internet at www.mydirectory.com/utc or through Employee Self-Service (ESS) (See page 14.)

Note that all Savings Plan participants can access Your Gateway via the internet. Only active employees can access Your Gateway via ESS.

Call: AccessDirect at 1-800-243-8135 and follow the Retirement & Investments prompts to reach the UTC Benefits Center. Representatives are available Monday through Friday from 8:00 a.m. to 9:00 p.m. ET.

Write: UTC Benefits Center100 Half Day RoadP.O. Box 1461 Lincolnshire, IL 60069-1461

Moving the administration of the Savings Plan from ■■

Fidelity Investments to Aon Hewitt. You’ll gain access to additional tools and calculators to make informed decisions from seeing the result of compound interest by starting to save sooner to learning how to make small budget adjustments that result in big changes in your retirement savings. And, as part of the transition, Your Benefits Resources™ the same website that active employees currently use to learn about and enroll in health and insurance benefits — will become Your Gateway* to all of your UTC Benefits. This gives you the ability to more quickly see how you are spending your benefit dollars, so you can more efficiently make decisions and manage your benefits.

Streamlining the way you invest in the Savings Plan.■■ We will provide an easier to understand, even lower cost, more flexible set of investment options to help you achieve your personal financial goals.

Adding a mutual fund brokerage window with a broad ■■

selection of mutual funds. This new feature allows those with unique investment goals (and potentially greater risk and fee tolerance) to choose investments outside of the Savings Plan’s core options and Target Retirement funds.

Please read the information in this booklet carefully to learn more about the upcoming transition and how it may affect your Savings Plan account. We also encourage you to share this information with those who help you make your financial decisions.

ABOUT THIS KITThe UTC Savings Plan has consistently been one of UTC’s most popular, successful and cost-effective benefit programs… and it’s about to get even better. Effective January 2011, we are:

i

* Beginning January 5, 2011, Your Gateway will replace Your Benefits Connection, Your Total Rewards, and Your Benefits Resources™.

ii

YOUR UTC SAVINgS PLAN IS MOVINg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Know What to Do Before, During and After the Blackout Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Before the Blackout Period Begins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1During the Blackout Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1After the Blackout Period Ends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Understanding Who Does What . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

THE INVESTMENT OPTIONS: MAPPINg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

THE INVESTMENT OPTIONS: WHAT’S IN IT FOR YOU? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Easier to Understand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Even Lower Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Investment Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7More Flexible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

ABOUT THE MUTUAL FUND BROKERAgE WINDOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9How the Mutual Fund Brokerage Window Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Things to Know Before You Start Investing in the Brokerage Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Trading in the Brokerage Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Brokerage Window Terms and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Doing Your Homework in the Brokerage Window: Tools & Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

WHAT TYPE OF INVESTOR ARE YOU?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Examples: People Like Me . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11The Importance of Diversification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TOOLS & RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Your Gateway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Access Your Savings Plan Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Track and Manage Your Savings Plan Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Your Benefits Advocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16The UTC Pension Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16The Aon Hewitt Personal Finance Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

FUND FACT SHEETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Table of Contents

The transition of your UTC Savings Plan account from Fidelity to Aon Hewitt will begin on December 30, 2010, at 4:00 p.m. Eastern Time (ET), at which time the “blackout period” will begin. The blackout period is expected to end on January 5, 2011, at 8:00 a.m. ET.

Keep a close eye on your home mailbox for an ■■

important letter from Aon Hewitt. If you have a balance in the Savings Plan, and you don’t have a password currently on file with Aon Hewitt, you will receive a temporary password and login instructions in the mail at your home address. Once the blackout period ends, you’ll need this information to access your Savings Plan account from home (or from any computer using the internet). Active employees don’t need this information to access their accounts through Employee Self-Service (ESS).

Take a look at your current investment elections.■■ When we introduce the new investment options in January 2011, your Savings Plan balance and investment elections as of December 31st will automatically be transferred to the same or similar options. This is called “mapping” (please see the mapping chart on page 4). You can:

— Leave your current investment options just as they are. If you are satisfied with how your current investments will transfer, or “map,” to the new investment lineup, you do not need to take any action. Remember that your current Savings Plan balance and investments will automatically transfer to the same or similar options with the exception of the Global Index Fund and First Eagle Global Fund, which will transfer to the age-appropriate Target Retirement Fund.

— Take action now. You can change your current investment elections and exchange between investment options before the blackout period begins, so they will map to the investment(s) that you want when the new lineup takes effect. This way, you can get a head start and pre-set your future allocations for the new investment options.

Consider any other Savings Plan transactions you may ■■

want to make. This includes actions such as changing your contribution rate and updating beneficiaries.

Know What to Do Before, During and After the Blackout Period

Before the Blackout Period Begins

1

YOUR UTC SAVINgS PLAN IS MOVINgThe administration of the UTC Savings Plan is moving from Fidelity Investments to Aon Hewitt this January. Before this change happens, there are some important things you need to know about how your Savings Plan account will be impacted.

YOUR UTC SAVINgS PLAN IS MOVINg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Know What to Do Before, During and After the Blackout Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Before the Blackout Period Begins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1During the Blackout Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1After the Blackout Period Ends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Understanding Who Does What . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

THE INVESTMENT OPTIONS: MAPPINg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

THE INVESTMENT OPTIONS: WHAT’S IN IT FOR YOU? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Easier to Understand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Even Lower Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Investment Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7More Flexible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

ABOUT THE MUTUAL FUND BROKERAgE WINDOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9How the Mutual Fund Brokerage Window Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Things to Know Before You Start Investing in the Brokerage Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Trading in the Brokerage Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Brokerage Window Terms and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Doing Your Homework in the Brokerage Window: Tools & Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

WHAT TYPE OF INVESTOR ARE YOU?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Examples: People Like Me . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11The Importance of Diversification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TOOLS & RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Your Gateway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Access Your Savings Plan Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Track and Manage Your Savings Plan Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Your Benefits Advocate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16The UTC Pension Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16The Aon Hewitt Personal Finance Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

FUND FACT SHEETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Please refer to the Blackout Period At-A-Glance insert in the front pocket of this book for details on deadlines for making changes to your Savings Plan account before the blackout period begins.

During the Blackout PeriodAll investments will continue to be subject to ■■

market gains and losses. Your Savings Plan account will be invested in the current investment options through 4:00 p.m. ET on Friday, December 31st. Your balance will then map to the new investment options and be subject to the market gains and losses of those funds. The Income Fund will continue to credit interest daily.

You will not be able to access the details of your ■■

account. That’s because during the blackout period all UTC Savings Plan participants’ records, including all banking information and withholding elections, will be moving from Fidelity to Aon Hewitt. See page 2 for a summary of how the transition impacts certain administrative features of the Savings Plan.

After the Blackout Period Ends

You will have complete access to your UTC ■■

Savings Plan account at Aon Hewitt. See page 14 for information about the new tools and resources that will be available to help you manage your Savings Plan account. We’ve provided step-by-step instructions for how to access your account through Your Gateway so you can review details and complete common transactions (e.g., requesting an investment exchange or naming a beneficiary).

YOUR UTC SAVINgS PLAN

IS MOVIN

g

2

Administrative Features of the Savings Plan

Loans Payment amounts and outstanding balances will not change. If you are repaying a loan through payroll deductions or bank payments, that process will continue uninterrupted. If you are paying back a loan through a coupon book, you will receive instructions from Aon Hewitt in January 2011 on how to set up your payments.

Beneficiary Elections If you have an electronic beneficiary designation at Fidelity (available since July 2009), your designation will be viewable on Your Gateway after the blackout period ends. Paper designations will not be viewable online, but will continue to be effective until an online designation is made.

Minimum Required Distributions (“MRD”)

Fidelity will pay all MRDs scheduled for 2010. Once the blackout period ends, you may request a MRD payment on Your Gateway or by calling AccessDirect and following the Retirement & Investments prompts. You will receive a notice from Aon Hewitt in January 2011 regarding your next MRD payment.

Installment Payments Installment payments scheduled for December 31st will be paid on December 30th. Aon Hewitt will commence installments beginning January 5th, per your elected payment date.

1099-R Forms Fidelity will manage the issuance of all 1099-R forms to participants who took a Savings Plan distribution in 2010. State Street Bank, the trustee for the Savings Plan, will assume this responsibility beginning with 2011 distributions.

Automatic Contribution Increases

If you have enrolled in the automatic increase feature, your future election increase and effective date will automatically move. You will not be required to make a new election.

Power of Attorney (“POA”)

If you have a POA on file with Fidelity, all information will automatically move — you will not be required to resubmit POA designations to Aon Hewitt.

Quarterly Statements Fidelity will provide a statement of your UTC Savings Plan account for Q4 2010. In light of the transition to Aon Hewitt, your ending balance on this statement will be $0. Your election at Fidelity to receive quarterly statements, electronically or via paper, will automatically move to Aon Hewitt. If you have no election on file, the default election will be electronic – meaning your quarterly account statement will be available on Your Gateway.

529 College Savings Plan Payroll Deductions Will Not Be TransferredBeginning in January 2011, you will no longer be able to contribute to the Fidelity 529 College Savings Plan through payroll deductions. However, you can set up automatic payments from your bank account using the Fidelity Automatic Investments feature of your 529 account. To establish these payments:

Online■■ : Visit www.fidelity.com and enter your login information. Go to the Accounts & Trade tab. Choose Update Accounts/Features and select Automatic Investments.

By mail■■ : Visit www.fidelity.com/college and click on Already a Fidelity Managed 529 Plan Customer? Under Move Money Automatically, select the form to set up automatic investments into your 529 account from a bank. You will need to complete the form and mail it to the address shown. Complete one form for each 529 account to which you are adding the Fidelity Automatic Investments feature.

If you have questions about your existing 529 account, call Fidelity at 1-800-544-1914 and select Option 2. Representatives are available from 8:00 a.m. to midnight ET, Monday through Friday.

An Important Note about Your Fidelity Password The password you use to access your Savings Plan account at Fidelity NetBenefits will not be transferred to Aon Hewitt. If you have a balance in the Savings Plan, and you don’t have a password currently on file with Aon Hewitt, you will receive a temporary password and login instructions in the mail at your home address on or around December 15, 2010. You’ll need this information to access your Savings Plan account from home (or from any computer using the internet). You don’t need this information to access your account through Employee Self-Service (ESS).

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YOUR UTC SAVINgS PLAN

IS MOVIN

g

Understanding Who Does WhatAs the plan sponsor and fiduciary, UTC:

Is responsible for the design and administration of the UTC Savings Plan, ■■

Oversees all government filings associated with the plan and ensures regulatory compliance, ■■

Manages the Income Fund and UTC Common Stock Fund/ESOP, ■■ and

He■■ ars all appeals submitted to the Benefits Claims Appeals Committee and UTC Hardship Committee.

There are many moving parts to the Savings Plan, which means there are various organizations — in addition to UTC — that help manage its operations and each have different roles. Below is a list of those organizations and a description of their responsibilities.

PROVIDER ROLE RESPONSIBILITY COMPANY PROFILE

Aon Hewitt

Administrator Aon Hewitt manages participant records, Your Gateway and the UTC Benefits Center.

Aon Hewitt is one of the world’s leading HR consulting and outsourcing companies. Currently, they are the 401(k) administrator for nine of the Fortune 50 and provide administrative services for UTC’s health and insurance benefits. Aon Hewitt, like UTC, is highly committed to quality and continuous improvement — they are strong partners in ACE and are working towards Supplier Gold recognition.

Hewitt Financial Services (“HFS”)

Administrator: Mutual Fund Brokerage Window

HFS manages the brokerage window service and provides research tools for selecting mutual funds.

HFS, a subsidiary of Aon Hewitt, consults on investment issues with Aon Hewitt’s 401(k) plan sponsors, which represent millions of participants and is approaching $300 billion in assets.

Alliance Bernstein

Investment Manager: Target Retirement Funds

AllianceBernstein is responsible for the design and implementation of the asset allocation strategy, or “glide path,” for the Target Retirement funds.

AllianceBernstein is a leading investment management firm that offers high-quality research and diversified investment services to institutional clients, individuals and private clients in major markets around the world. With $460 billion in assets under management as of June 30, 2010, they are one of the largest investment firms in the world.

State Street Bank & Trust Company (“SSB”)

Trustee/Custodian

Check Writer

SSB holds the assets of the UTC Savings Plan — approximately $14.5 billion in trust, as of June 30, 2010. This means that the assets are being used for the sole benefit of plan participants and cannot be accessed by SSB.

Beginning in 2011, SSB will also process all check and ACH payments for UTC Savings Plan loans and distributions, and issue respective 1099-R forms.

SSB is a leading financial services provider and has acted as trustee/custodian for the UTC Savings Plan since 2003. With $19 trillion in assets under custody and administration as of June 30, 2010, SSB is an industry leader and innovator.

State Street Global Advisor (“SSgA”)

Investment Manager:Core Options

SSgA manages the underlying portfolio and overall performance of the Target Retirement funds and core options, excluding the Income Fund and UTC Common Stock Fund/ESOP.

SSgA is the investment management division of SSB and a global leader in providing investment management services to clients worldwide. With $1.78 trillion in assets under management as of June 30, 2010, SSgA is one of the three largest investment managers in the world.

THE INVESTMENT OPTIONS: MAPPINgThe chart below shows how the current investment options in the UTC Savings Plan will be mapped to the new investment options as of December 31, 2010, at 4:00 p.m. Eastern Time (ET). This mapping applies to account balances and investment elections for future contributions and loan repayments. If you are satisfied with the mapping outlined below, there is no action you need to take — you can choose to leave your current investments just as they are. Or, you may decide that you want to change your current investments before December 30, 2010, at 4:00 p.m. ET so they will map to the investment(s) you want when the new investment lineup takes effect.

4

* Formerly known as the Putnam New Opportunities Fund.

** No single new investment option replicates the investment characteristics of the Global Index Fund or the First Eagle Global Fund. The Target Retirement funds are broadly diversified options that meet the needs of many investors.

Equity Fund (S&P 500)Putnam Multi-Cap Growth Fund*Value Index FundGrowth Index FundThe Putnam Fund for Growth and IncomeFidelity Contrafund

Vanguard Target Retirement 2005 FundVanguard Target Retirement 2010 FundVanguard Target Retirement 2015 FundVanguard Target Retirement 2020 FundVanguard Target Retirement 2025 FundVanguard Target Retirement 2030 FundVanguard Target Retirement 2035 FundVanguard Target Retirement 2040 FundVanguard Target Retirement 2045 FundVanguard Target Retirement 2050 Fund

International Equity Index FundTempleton Institutional Foreign Equity

Global Index FundFirst Eagle Global

Fidelity Low-Priced Stock FundMidcap Index FundSmall Company Stock Index FundVanguard Explorer Admiral FundTarget Small Cap Value

Templeton Institutional Emerging Markets

Not currently available


UTC Common Stock Fund/ESOP

Income Fund


New: Equity Fund (S&P 500)

New: Target Retirement 2005 FundNew: Target Retirement 2010 FundNew: Target Retirement 2015 FundNew: Target Retirement 2020 FundNew: Target Retirement 2025 FundNew: Target Retirement 2030 FundNew: Target Retirement 2035 FundNew: Target Retirement 2040 FundNew: Target Retirement 2045 FundNew: Target Retirement 2050 Fund

New: International Equity Fund

Target Retirement Fund** (Age-appropriate, based on retirement age of 65)

New: Small Company Stock Fund

New: Emerging Markets Equity Fund

New: Government/Credit Bond Fund

New: Target Retirement 2055 Fund


Income Fund

New: Mutual Fund Brokerage Window

If you’re invested in the … Then your balance will be mapped to the …

Meet Christine.

Christine is 45 years old and plans to retire at age 65. Here’s how Christine’s Savings Plan balance and investment elections will be mapped in January 2011:

Christine’s balance as of December 31, 2010 Where her balance will be mapped…

Equity Fund (S&P 500) $20,000 Equity Fund (S&P 500)


$15,000 Emerging Markets Equity Fund

Global Index Fund $10,000 Target Retirement 2030 Fund

UTC Common Stock Fund/ESOP $5,000 UTC Common Stock Fund/ESOP

Christine’s investment elections as of December 31, 2010

How her future contributions will be invested…

Investment Option Election %

Equity Fund (S&P 500) 50% Equity Fund (S&P 500)


50% Emerging Markets Equity Fund

5

Mapping of the Global Index Fund and First Eagle Global Fund to the age-appropriate Target Retirement Fund will be determined by UTC based on your date of birth and assuming a retirement age of 65. Please refer to the following chart for additional details:

If you were born… The age-appropriate Target Retirement Fund is...

Before 12/31/42 Target Retirement 2005 Fund

1/1/43 – 12/31/47 Target Retirement 2010 Fund









1/1/88 – Present Target Retirement 2055 Fund

THE INVESTM

ENT OPTION

S: MAPPIN

g

It’s up to you...Remember, this mapping is not intended to be permanent. If you’re not satisfied with where your balance is invested after the blackout period ends, you may make exchanges into other investment options.

Questions? See pages 17-18 for more details about the Target Retirement funds.

What is an expense ratio?The expense ratio for any investment fund represents the total operating expenses and management fees for the year. It’s expressed as a percentage of the fund’s average net assets. A lower expense ratio means investors retain more of the fund’s total return.

What is a basis point?One basis point is equal to one one-hundredth of a percentage point (0.01%). One hundred basis points add up to one full percent. If an annual investment management fee is 25 basis points on $100,000, that would be $250 per year.

THE INVESTMENT OPTIONS: WHAT’S IN IT FOR YOU?After extensive benchmarking and evaluating recent changes in the retirement plan marketplace, we believe that the UTC Savings Plan — already one of our most successful and popular benefits — can be made even better. We’re streamlining the way you invest in the Savings Plan by providing an easier to understand, even lower cost, more flexible set of options.

Meet Dave.Dave is 50 years old and plans to retire at age 65. He has $72,000 in his Savings Plan account, invested entirely in the Vanguard Target Retirement 2025 Fund. He contributes $3,000 each year to the Savings Plan.

As of June 30, 2010, the Vanguard Target Retirement 2025 Fund had an expense ratio of 19 basis points (0.19%). The new Target Retirement 2025 Fund, which will be available in January 2011, is expected to have an annual expense ratio of 14 basis points (0.14%) — and that expense ratio should decrease over time as its assets grow. Let’s assume that between now and when Dave retires, the average annual investment return for Target Retirement 2025 Fund is 6%.

Here’s what his projected account balance looks like in 2025 — the year he reaches age 65:

Dave’s Balance At Retirement

Expense ratio of 19 basis points (0.19%)

$ 238,700

Expense ratio of 14 basis points (0.14%)

$ 240,200

The lower expense ratio increases Dave’s account balance by $1,500.

Had Dave instead invested outside of the Savings Plan in a typical retail Target Retirement 2025 Fund, he could expect an annual expense ratio ranging from 25 to 65 basis points — depending on the fund provider and management style. If we assume that Dave invested in a retail fund with an annual expense ratio of 45 basis points (0.45%), he would pay $9,000 more in fees by the time he reaches age 65. The experience of this hypothetical investor may not be representative of the experiences of many investors and is not an indicator of future investment performance.

Easier to UnderstandReducing the number of options makes it easier to focus on your overall retirement strategy and manage your Savings Plan account — without compromising your access to the asset classes that you need to build a well-diversified portfolio.

Even Lower CostAll investment options are subject to investment management fees and other charges and expenses that impact participants. The new investment options in the Savings Plan will have the same fees as — or even lower than — the already low-cost current options. Having lower fees can help your account balance grow faster over the long term.

6

* Formerly known as the Putnam Opportunities Fund.

7

Investment ComparisonHere is a look at how the current Savings Plan investment options compare:

THE INVESTM

ENT OPTION

S: WHAT’S IN

IT FOR YOU?

2011 Investment Lineup

Fund NameInvestment Manager

ExpectedExpense Ratio

BenchmarkTracks the performance of the:

Income Fund

UTC Pension Administration & Investment Committee

0.32% —

Government/ Credit Bond Fund

State Street Global Advisors

0.06%Barclays Capital U.S.Government/Credit Bond® Index

Equity Fund (S&P 500)


0.02% S&P 500® Index

Small Company Stock Fund


0.03%Russell Small Cap Completeness® Index

International Equity Fund


0.10%

Morgan Stanley Capital International (MSCI) EAFE® Index (Net)

Emerging Markets Equity Fund


0.20%MSCI Emerging Markets Index


State Street Bank

0.01% —

Target Retirement Funds (’05-’55)

Alliance Bernstein

0.14%

Varies based on underlying weighted indices. (See pages 17-18 for more details.)

2010 Investment Lineup

Fund Name Investment ManagerExpense Ratio(as of 6/30/10)

Income Fund

UTC Pension Administration & Investment Committee

0.32%


Equity Fund (S&P 500)

Northern Trust Global Investments

0.02%

Value Index FundNorthern Trust Global Investments

0.08%

Putnam Multi-Cap Growth Fund*

Putnam Investment Management Company

1.02%

Growth Index FundNorthern Trust Global Investments

0.10%

Putnam Fund for Growth and Income

Putnam Investment Management Company

0.91%

Fidelity ContrafundFidelity Management & Research Company

1.02%

Small Company Stock Index Fund


0.07%

Fidelity Low-Priced Stock Fund

Fidelity Management & Research Company

0.99%

Midcap Index FundNorthern Trust GlobalInvestments

0.06%

Vanguard Explorer Admiral Fund

Vanguard Group, Inc. 0.34%

Target Small Cap Value

Prudential Investments LLC

0.80%

International Equity Index Fund


0.15%

Templeton Institutional Foreign Equity

Templeton Asset Management Ltd.

0.82%


Templeton Asset Management Ltd.

1.47%


Fidelity Management Trust Company

0.01%

Global Index FundNorthern Trust Global Investments

0.13%

First Eagle GlobalFirst Eagle InvestmentManagement, LLC

0.94%

Vanguard Target Retirement Funds (’05-’50)

Vanguard Group, Inc.0.17-0.20%

8

The Income Fund will continue to be an investment option in the UTC Savings Plan — nothing about the Income Fund changes as a result of this transition. Effective October 1, 2010, the declared rate for the Income Fund is 3.75%. This rate will remain in effect through the end of 2010 and reflects the current market conditions for fixed-income vehicles, as well as the broader economic environment. This rate is adjusted on a quarterly basis, consistent with market practice for other large stable value funds, like the Income Fund. Quarterly updates to the Income Fund crediting rate will be posted on Your Gateway.

More FlexibleThe UTC Savings Plan has over 100,000 participants. These participants range from less-experienced investors, who may not be as comfortable making investment decisions, to very financially savvy investors, who take a hands-on approach to managing their investments. The new investment options are designed to be flexible enough to serve all types of investors.

It’s your choice. You manage your investment portfolio in the way that makes the most sense for you. Depending on your investment know-how and risk tolerance, you can use any one or a combination of the following ways to determine how to invest your savings:

Let a professional manage it for you■■ — using the Target Retirement funds. Target Retirement funds offer you “built-in” diversification within a single investment option.

Do it yourself■■ — using six core options and UTC stock. You can mix and monitor the core funds to achieve diversification among several asset classes, each with its own risks and returns. The Government/Credit Bond Fund, Equity Fund (S&P 500), Small Company Stock Fund, International Equity Fund and Emerging Markets Equity Fund are index funds.

Do it yourself with more choice■■ — using a mutual fund brokerage window, which provides access to over 8,000 mutual funds. It’s designed for those with very specific investment objectives. It may be attractive to you if you are an experienced investor looking for a wider range of options from which to choose and you want to research and monitor your investments on your own. If you use the window, you will pay a $15 quarterly maintenance fee for access to the program. The funds accessible through the window will typically carry higher investment management fees than the Savings Plan’s low-cost core investment options, and some are subject to transaction fees.

Through Your Gateway, you can access details about the investment options, including their investment strategies, asset allocations, top holdings, performance histories and expenses.

See pages 17-25 for the Fund Fact Sheets as of ■■

June 30, 2010* — Performance, portfolio characteristics and holdings for the Income Fund, Equity Fund (S&P 500), Small Company Stock Fund, International Equity Fund and UTC Common Stock Fund are based on investment options offered through the UTC Savings Plan as of June 30, 2010. Performance, portfolio characteristics and holdings for the Savings Plan’s new Government/Credit Bond Fund and Emerging Markets Equity Fund are based on the portfolios of substantially similar collective investment trusts managed by State Street Global Advisors.

* Provided by Morningstar® and AllianceBernstein.

What is an index fund? An “index fund” describes a fund whose investment objective is to achieve approximately the same return as a particular market index, such as the S&P 500® Composite Stock Price Index, the Russell 2000 Index or the Morgan Stanley Capital International (MSCI) EAFE® Index. An index fund will attempt to achieve its investment objective primarily by investing in the securities (stocks and bonds) of companies that are included in a selected index. Some index funds invest in all of the companies included in an index; other index funds invest in a representative sample of the companies included in an index. Index funds are passively managed. Since portfolio decisions are automatic and transactions are infrequent, expenses are lower than those of actively managed funds.

ABOUT THE MUTUAL FUN

D BROKERAgE W

IND

OW

9

It’s up to you to transfer money into the mutual fund brokerage window1. You may transfer money from any investment options into the brokerage window, subject to transfer minimums and trading restrictions:

You must keep a minimum balance of $1,000 in ■■

the core options, UTC stock and/or Target Retirement funds offered in the UTC Savings Plan.

The minimum amount that can be transferred into the ■■

brokerage window is $5002.

Money that you transfer into the brokerage window will initially be invested in the Hewitt Money Market Fund and available the next business day to begin trading3.

You may transfer money from the brokerage window back into the other Savings Plan investment options at any time, by requesting a transfer through Your Gateway or the UTC Benefits Center.

Things to Know Before You Start Investing in the Brokerage WindowYou can trade mutual funds online or by speaking to an Investment Specialist at the UTC Benefits Center. You can transact in your account on any business day the stock market is open.

Trading in the Brokerage WindowGeneral restrictions■■ 4. You can only trade mutual funds in the brokerage window. You may not take a distribution or loan directly from the brokerage window — these transactions, if available, can be initiated only through the other investment options in the UTC Savings Plan.

General Settlement periods■■ 5.

Load mutual funds: Three business days after the trade date No-load mutual funds: Next business day after the trade date

Trading requirements.■■ Your balance in the brokerage window must be sufficient to cover your trade and any applicable transaction fees at the time your order is placed.

ABOUT THE MUTUAL FUND BROKERAgE WINDOWWe expect that a majority of UTC Savings Plan participants will choose to invest exclusively in the plan’s diverse set of core investment options and Target Retirement funds. However, we recognize that some participants have specific investment objectives or other unique circumstances. With such participants in mind, we are introducing a mutual fund brokerage window.

The brokerage window will be offered through Hewitt Financial Services and will provide participants with access to additional investments — including all the mutual funds currently available in the UTC Savings Plan. If you are considering investing in mutual funds offered through the brokerage window, it’s important to know that it costs more and often carries additional investment risk. Specifically, you will pay a quarterly maintenance fee of $15 for access to the program. In addition, many of the mutual funds available are actively managed and carry higher investment management fees than the Savings Plan’s low-cost, core investment options. Some are also subject to transaction fees. Please carefully consider the additional costs and risks before investing in the brokerage window.

You will be required to review a detailed Participant Agreement if you choose to enroll in the brokerage window. You will then receive more comprehensive information about the brokerage window offering.

How the Mutual Fund Brokerage Window Works

1 Mutual Funds are offered by prospectus only. Hewitt Financial Services (HFS) may receive servicing fees from money market funds and mutual fund companies in addition to the clearing and execution fees charged to you. Please refer to the HFS Plan Participant Agreement for additional details. Investors should carefully consider the information contained in the mutual fund prospectus, including investment objectives, risks, charges, purchase minimums and expenses. You can request a mutual fund prospectus by logging into your account and clicking on Order Prospectus under the Mutual Fund Center.

2 Additional restrictions may apply. For full details, please refer to the mutual fund prospectus.3 An investment in the Hewitt Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the fund seeks

to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.4 Additional restrictions may apply. For full details, please refer to the mutual fund prospectus.5 Some mutual fund trades settle the same business day. Load mutual funds are subject to sales fees upon purchase or sale of the fund, while no-load mutual funds are not. For full details

on these fees, please refer to the mutual fund prospectus.

10

Brokerage Window Terms and Fees

Mutual funds. ■■ $500 minimum investment6

No Transaction Fee (NTF) funds■■ 7. A subset of mutual funds is offered with no transaction fees as long as the fund(s) is held in the brokerage window for longer than 90 days. NTF funds redeemed or exchanged within 90 days of the purchase date will incur a $50 transaction fee.

Transaction Fee funds.■■

Purchase or sale of no-load or low-load funds: $19.95 Exchange between funds in the same fund family and share class: $10 Representative assisted transactions: $25 (in addition to other fees)8

Front-End Load funds. ■■ Sales charges are waived and there is no transaction fee.

Income Fund/Brokerage Window transfer restriction. ■■

Certain options available within the brokerage window operate as “competing fixed income funds” when viewed in comparison to the Income Fund. The insurance companies that provide contractual commitments to assure the principal plus a fixed rate of interest in the Income Fund restrict participants from engaging in short-term market timing between fixed income-type investments. These restrictions protect the stability and return provided by the Income Fund. As a result, in January 2011, coincident with the offering of a brokerage window, the UTC Savings Plan will institute an Income Fund/Brokerage Window transfer restriction. The restriction will operate as follows:

You cannot transfer balances out of the Income Fund directly into the brokerage window. Balances transferred out (restricted amounts) of the Income Fund must remain invested in a Target Retirement fund or other core investment option for 90 calendar days. After 90 calendar days, you may transfer the restricted amount into the brokerage window. There are no restrictions on transfers into the Income Fund.

Doing Your Homework in the Brokerage Window: Tools & Resources

If you are trading through the brokerage window, doing your homework is an important part of the process. Hewitt Financial Services provides investment information from a variety of sources to help you make informed investment decisions.

Tools and resources can help you build your knowledge, select investment options, evaluate risk and manage your UTC Savings Plan account. This becomes even more critical to managing your investments when you decide to do much of the investing on your own. Here’s a quick look at the tools and resources you’ll have through the Hewitt Financial Services website.

Watch lists ■■ allow you to create customized portfolios to track the movement of mutual funds.

FundScan™■■ provides screening and research on funds in more than 250 fund families based on your criteria.

Dow Jones Newswires■■ SM keeps you up to date on the global markets with news geared to the needs of individual investors. Also, as part of this service, you can retrieve the latest news from PR Newswire and BusinessWire.

Morningstar Analytical Data ■■ provides you with access to detailed profiles on thousands of mutual funds.

Questions?You can get more information about the mutual fund brokerage window at www.hewittfs.com.

When the blackout period ends, you can visit Your Gateway or call AccessDirect and follow the Retirement & Investments prompts.

6 Additional restrictions may apply. For full details, please refer to the mutual fund prospectus.7 The no transaction fee (NTF) eligibility applies only to the initial transaction fee associated with the purchase of the fund. It does not apply to any management fees or other expenses

associated with the fund, including any redemption fees. For full details on these expenses/fees, please refer to the mutual fund prospectus. 8 The representative assisted transaction fee only applies if a HFS representative places a trade for you. You can call and speak to a representative Monday through Friday from 9:00 a.m.

to 7:00 p.m. ET for no additional charge.

11

Meet Patrick. Patrick is 25 years old and new to UTC. He realizes the importance of starting early to build a retirement nest egg, but also wants to save money to buy a house. Patrick can’t always find the time to monitor his UTC Savings Plan account or rebalance his portfolio. Today he invests solely in the Vanguard Target Retirement 2050 Fund, since that’s when he’ll turn 65.

Patrick decides that he isn’t going to make any changes at this time, since his current investment option will map to the new Target Retirement 2050 Fund. He likes that this investment option automatically reallocates its investment mix over time, becoming more conservative as he nears retirement.

Meet Shawna.Shawna is 35 years old and has a young family. Shawna has always kept a reasonably close eye on her UTC Savings Plan investments and rebalances her portfolio from time to time to keep the allocation she desires. Today, Shawna has her money invested in the Equity Fund (S&P 500), UTC Common Stock Fund and the International Equity Index Fund.

Shawna decides that she isn’t going to make any changes at this time, since her current investment options will map to the same funds after the blackout period ends. Shawna likes that these options have low expense ratios, which is a potential advantage to helping her assets grow over time.

WHAT TYPE OF INVESTOR ARE YOU?As you learn about the new investment options, you may want to take a few minutes to think about what type of investor you are. Start with the assumption that you are already saving and investing for retirement with the UTC Savings Plan. (If not, there’s no better time to start than now.)

If you aren’t sure what type of investor you are, you can get a good idea by considering just three questions. There are no right or wrong answers:

Do I have the desire to select my own mix of investment options?1.

Am I comfortable deciding how much to invest in each option?2.

Do I have time to keep an eye on my investments and make changes as I get closer to retirement?3.

If you answered mostly “no,” you can let a professional manage it for you by using the Target Retirement funds.

If you answered mostly “yes,” you may prefer to manage your UTC Savings Plan account on your own by using the six core options and UTC Stock and/or the mutual fund brokerage window.

Examples: People Like MeNo matter how you answered the questions above, the UTC Savings Plan has a broad selection of investment options to suit your preferences. And, to help you think more about the type of investor you are, it may be helpful to review representative stories from characters about how they might approach looking at the new investment options based on their personal situations.

WHAT TYPE OF IN

VESTOR ARE YOU?

12

Meet Mike.Mike is 72 years old and has retired from UTC. He receives a monthly UTC pension plan benefit and uses his UTC Savings Plan assets to supplement his income. Mike invests primarily in the Income Fund with some assets in the Equity Fund (S&P 500).

Mike decides to make no changes to his investments at this time because he is primarily interested in preservation of principal and is not willing to take on additional risk. Per IRS rules, however, he must take a Minimum Required Distribution (MRD) from his account each year, which will continue automatically in 2011.

Meet Robert. Robert is 45 years old and has participated in the UTC Savings Plan for a number of years. He has a growing UTC pension plan benefit and hopes to maximize his Savings Plan balance so he can retire at age 55. Robert has taken the time to study investing closely and currently has money invested in ten different Savings Plan options.

Robert decides after thoroughly researching the options and fees associated with the mutual fund brokerage window that with the new investment lineup, he wants to invest a quarter of his money in the brokerage window and the rest in the core options. That’s because he has investment views that he feels can best be met by using the actively managed mutual funds available to him in the brokerage window. Robert is comfortable with the additional cost and risk associated with investing in the brokerage window and likes being an active investor.

Meet Lisa.Lisa is 50 years old and has two children in college. Despite high tuition expenses, she still contributes enough to the UTC Savings Plan to receive the full Company match. Lisa has a diversified portfolio with money invested in the Income Fund, UTC Common Stock Fund, Fidelity Contrafund and Templeton Institutional Emerging Markets Fund.

Lisa sees that the Fidelity Contrafund and Templeton Institutional Emerging Markets Fund will be available to her in 2011 only if she chooses to use the mutual fund brokerage window, but she decides instead to let her current options be mapped to the similar options in the new investment lineup. That’s because she likes that the Equity Fund (S&P 500) and new Emerging Markets Equity Fund are diversified index funds with even lower expense ratios than the two options in which she is invested already.

Now that Lisa is 50 years old, she is also considering making additional before tax catch-up contributions to her Savings Plan account.

13

The Importance of DiversificationThe UTC Savings Plan offers a broad selection of investment options and asset classes, providing you the opportunity to manage investment volatility and risk by diversifying your investments. Some Savings Plan participants diversify by investing in one of the plan’s Target Retirement funds, and others mix and monitor by choosing to invest in several of the plan’s core options and/or mutual funds.

While it’s entirely up to you to decide how you invest your Savings Plan dollars, we urge you to consider diversification as part of your investment strategy. Diversification means balancing your risk by choosing different investment options to help make your savings less vulnerable to declines in any single asset class or stock. Investment professionals agree: diversification is a risk reduction strategy.

Investment options available in the UTC Savings Plan offer you the opportunity to diversify in different ways. The Target Retirement funds, mentioned above, are comprised of several different asset classes and offer “built-in” diversification within a single option. Core options, such as the Equity Fund (S&P 500), offer significant diversification within a specific asset class (i.e., stocks of large U.S. corporations). However, even with this option, you should consider additional investment classes with risk characteristics that differ from the U.S. stock market.

Examples include the Income Fund and International Equity Fund. Some investment options offer diversification within an asset class by concentrating in a sub-sector of that asset class. An example is the Small Company Stock Fund, which invests only in smaller U.S. companies. Even though this option does not diversify you outside the U.S. stock market, it helps to diversify your U.S. equity holdings. Alternatively, the International Equity Fund, Emerging Markets Equity Fund and Income Fund offer entirely different asset classes with different risks and opportunities than U.S. stocks, thereby providing diversification between asset classes.

Among your investment choices, a single company stock offers the least diversification and, potentially, the most volatility and risk. This is the context in which you should consider the UTC Common Stock Fund/ESOP. These options have performed well over various time periods, reflecting UTC’s track record of earnings growth and competitiveness. However, it is important for you to keep in mind that the UTC Common Stock Fund/ESOP are single stock funds and, as such, are the least diversified Savings Plan investment options. Many investment professionals advise against holding more than 10% to 20% of your total portfolio in a single stock.

Are you diversified?We encourage you to regularly review your Savings Plan account. Ask yourself whether your assets are adequately diversified, taking into account your investments inside and outside of the Savings Plan. Perhaps it’s time to consider whether additional diversification may be an appropriate strategy for you.

WHAT TYPE OF IN

VESTOR ARE YOU?

14

TOOLS & RESOURCESHaving the tools and resources you want to make informed decisions is a critical part of making the most of your UTC Benefits. Aon Hewitt brings state-of-the-art administration capabilities and provides access to additional tools and calculators to help you make informed decisions. UTC also offers other financial and educational support to help you manage your savings and investments.

Your GatewayYour Gateway is an integrated, personalized website designed to give you a comprehensive experience — from giving you the ability to more quickly see how you are spending your benefit dollars to helping you understand the total value of your rewards with UTC.

When it comes to the Savings Plan, you’ll have access to additional tools and calculators that can help you reach your financial goals. Here are just a few:

Putting Time on Your Side ■■ — see how beginning to save sooner impacts your chance of reaching your retirement goals.

Compare Roth 401(k) versus Before Tax■■ — determine whether saving with Roth 401(k) contributions or before tax contributions is best for your situation.

Choosing Your Annual Withdrawal Rate■■ — determine how much to withdraw from your Savings Plan account each year in retirement.

Access Your Savings Plan AccountBeginning January 5, 2011, you can access your UTC Savings Plan account online at Your Gateway. Here’s how:

From home■■ (or from any other computer with internet access), go to www.mydirectory.com/utc. You’ll be asked to enter your User ID and Password, which is the same User ID and Password active employees use to enroll in their health and insurance benefits during Annual Enrollment.

— If you don’t have a User ID and Password, refer to the temporary password and login instructions you receive in your home mail from Aon Hewitt on or around December 15.

— If you need to reset your User ID and/or Password, follow the online prompts to Register as a New User and select I Forgot My Password or call AccessDirect.

From work,■■ click on Your Gateway on Employee Self-Service (ESS). Only active employees can access Your Gateway through ESS.

Don’t have internet access?You can also access your Savings Plan account via phone by calling AccessDirect at 1-800-243-8135 and following the Retirement & Investments prompts.

15

Track and Manage Your Savings Plan AccountYou’ll use Your Gateway to track and manage your Savings Plan account, as well as view your transaction history, such as the transfer of your Savings Plan balance from Fidelity to Aon Hewitt.

To get started: From Your Gateway homepage, select My Wealth from the banner navigation. Then, from the Savings Plan section of the My Wealth page, click More and a fly-out navigation list will appear. Next, select Retirement Account Summary.

After you have reviewed your Account Summary, click on UTC Savings Plan in the banner navigation and a fly-out menu will appear. From here, you can:

u Review Transferred BalanceFrom the Review Investments section you can review your balance transfer:

n In summary, by clicking Account Summary and then selecting Account Activity.

n In detail by investment option, by clicking Investment Activity Summary.

u Enroll in the Savings Plan Click on Start Saving. Elect the Plan default contribution and investment elections via the Quick Enrollment option,

or choose Expanded Choices to enter your contribution and investment elections.

u Change Your Contribution ElectionClick on Change Contributions and enter your new contribution elections.

u Change Your Investment Election Click on Change Investments. Next, click on Change My Future Investments. Enter your fund and percent elections.

u Request an Investment ExchangeClick on Change Investments and select from:

n Reallocate My Balance. Redistribute your current balance, by percentage, to a new mix of investment options.

n Transfer Money From Fund(s) to Fund(s). Enter a percent or amount of your current balances to transfer and choose where to invest the transferred balance.

n Interact With My Brokerage Account. Invest in a broad selection of mutual funds through the brokerage window.

u Review Investment Informationn Click on Fund Performance. See the Savings Plan’s investment performance by fund.

n Click on Portfolio Performance. See your investment performance by fund.

u Elect a Beneficiary Click on Beneficiaries.

n Update existing beneficiary information. Click on your beneficiary’s name and make changes. To update a beneficiary designation percent, select Choose Beneficiaries. Then, select Primary or Contingent and assign a benefit percentage.

n Add a new beneficiary. Select Choose Beneficiaries. Then, verify your marital status and add or update information if applicable. Next, choose a beneficiary type and enter beneficiary information. Finally, select Primary or Contingent and assign a benefit percentage.

TOOLS & RESOURCES

16

Your Benefits AdvocateBeginning in January 2011, UTC will expand the benefits advocate services offered by Aon Hewitt to include the UTC Savings Plan. The service is available through AccessDirect and can help you get answers to your Savings Plan questions, including enrollment, loans, distributions and other topics. Your advocate will research your issue and work to resolve it on your behalf. Your benefits advocate can also help direct you to additional services available through UTC’s benefits offering. To reach a benefits advocate, call AccessDirect at 1-800-243-8135, follow the Retirement & Investments prompts and ask to speak with a benefits advocate.

The UTC Pension CenterThe UTC Pension Center can provide details about your UTC pension plan and allows you to estimate your accrued and projected benefits, as well as perform other transactions, through Your Gateway. To speak with a representative at the UTC Pension Service Center, call AccessDirect and follow the Retirement & Investments prompts.

The Aon Hewitt Personal Finance Center The Aon Hewitt Personal Finance Center is a valuable service that can help with personal finance matters like planning for retirement and debt management. You’ll have access to a suite of educational material to help you make decisions about managing your money wisely, saving for college expenses and becoming retirement ready. Through the Personal Finance Center, you also have access to ClearPoint, a national non-profit organization dedicated to helping consumers identify and resolve their financial problems. ClearPoint counselors can assist you with a comprehensive and confidential assessment of your current financial situation, complete with a working budget, financial education tools and savings tips. They will help you make the most of your available income. You will be able to access the Personal Finance Center through Your Gateway or by calling AccessDirect and following the Retirement & Investments prompts.

Questions?You can find more details about how the Savings Plan works in your Summary Plan Description (SPD) on Your Gateway.

17

FUND FACT SHEETS

FUND FACT SHEETS

Target Retirement Funds greatly simplify retirement investing, with 11 portfolios designed for those saving for retirement in the future and for those who are in or near retirement. Each fund is a complete, diversified investment program — a one-stop investment strategy in a single option.

Each Target Retirement Fund has a date in its name — we call this the fund’s “target date.” The target date is the approximate year when you expect to retire and begin withdrawing from your account.

Picking Your Retirement Date Is SimpleJust take the year you were born, then add your expected retirement age to it — that’s the year you expect to retire.

Once you’ve chosen a Target Retirement Fund, it changes with you over time. Each fund gradually shifts to a more conservative approach — automatically.

And with Target Retirement Funds, you’re spreading your money across many separate equity and bond components, with the objective always to seek the highest total return consistent with an age-appropriate level of risk. By spreading your money across these different investment types, Target Retirement Funds give you access to a world of opportunities.

A Complete Investment Strategy in a Single OptionFunds that are furthest away from their target dates start out invested almost entirely in equities to emphasize the growth potential you need to build wealth over the long term.

As you move closer to retirement, and eventually into retirement, your fund automatically adjusts to a more conservative mix of investments.

When your fund reaches its target date, its investment mix is 53% equities and 47% bonds. Your fund’s final investment mix, 15 years after the target date, is 30% equities and 70% bonds.

Investments in Target Retirement Funds are not guaranteed against loss of principal: at any time, your account value can be more or less than the original amount contributed — including at the time of the fund’s target date. Also, investing in Target Retirement Funds does not guarantee sufficient income in retirement.

Manager SummaryThe asset allocation provider and manager is AllianceBernstein L.P. The investment portfolios underlying the Target Retirement Funds are managed by State Street Global Advisors (SSgA).

Short-Duration Bonds

Inflation-Protected SecuritiesCore Bonds

Emerging Markets StocksInternational StocksUS Small/Mid Cap Stocks US Large-Cap Stocks

0

20

40

60

80

100

Retirement Years AfterYears Before Retirement

45 40 35 30 25 20 15 10 5 0 5 10 15 20

Asse

t Allo

catio

n (%

)

Investments Become More Conservative Over Time

For Participants Saving for Retirement Near or in Retirement

20502055 2045 2040 2035

2030 2025 2020 2015

2010 2005

Target Retirement Funds

18

The Target Retirement Funds are designed to provide an appropriate investment mix during working years and through retirement. This investment strategy is similar to the Vanguard Target Retirement Funds that are currently offered in the UTC Savings Plan. The design of the new Target Retirement Funds reflects UTC’s participant demographics and each Fund has a lower expense ratio.

Performance DisclosureThe inception date for the new Target Retirement Funds will be December 31, 2010. Therefore, performance history is not available in this fact sheet. Performance for the Target Retirement Funds and their corresponding benchmarks will be included in the quarterly Morningstar profiles beginning as of March 31, 2011.

Years Before Retirement Retirement

45 40 35 30 25 20 15 10 5 0 5 10 15 20

US Large-Cap Stocks 41.00% 41.00% 41.00% 41.00% 41.00% 39.00% 37.50% 33.00% 29.00% 25.50% 22.00% 18.00% 15.50% 15.50%

US Small/Mid Cap Stocks 13.00 13.00 13.00 13.00 13.00 12.00 11.00 10.00 8.00 6.00 4.50 3.50 2.50 2.50

International Stocks 29.00 29.00 29.00 29.00 29.00 27.50 25.50 22.50 20.00 17.00 14.00 11.50 9.50 9.50

Emerging Markets Stocks 7.00 7.00 7.00 7.00 7.00 6.50 6.00 5.50 5.00 4.50 3.50 3.00 2.50 2.50

Core Bonds 10.00 10.00 10.00 10.00 10.00 15.00 20.00 23.50 25.00 25.00 25.00 25.00 25.00 25.00

Inflation-Protected Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.50 13.00 17.00 17.00 17.00 17.00 17.00

Short-Duration Bonds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 14.00 22.00 28.00 28.00

DCI–6420–1010

11 Target Retirement Funds in Five-Year Vintages

The Target Retirement Funds are only available for investment in the UTC Employee Savings Plan and are not offered for sale to the general public. Each Target Retirement Fund is a daily priced separate account that invests in a set of underlying investment portfolios. Separate accounts are not mutual funds and interests in the Target Retirement Funds are not deposits of AllianceBernstein Trust Company, LLC or any AllianceBernstein affiliate and are not insured by the Federal Deposit Insurance Corporation or any other agency. The Target Retirement Funds are exempt from investment company registration under the Investment Company Act of 1940, and purchases and sales of interests in the Target Retirement Funds are not subject to registration under the Securities Act of 1933. Management of the Target Retirement Funds, however, is generally subject to the fiduciary duty and prohibited transaction requirements of the Employee Retirement Income Security Act of 1974, and the rules and regulations of the United States Department of Labor promulgated thereunder. AllianceBernstein provides asset allocation advice for the Target Retirement Funds.

A Word About Risk—Each Target Retirement Fund allocates its investments among multiple asset classes, which will include US and foreign securities, as well as equity and fixed-income securities. Within each of these, the Target Retirement Fund will also allocate its investments in different types of securities, such as growth and value stocks, and corporate and US government bonds. The prices of small-cap stocks and mid-cap stocks are generally more volatile than large company stocks. International investing involves risks not associated with US investments, including currency fluctuations and political and economic changes. The Target Retirement Funds may at times use investment derivatives such as options, futures, forwards and swaps. The use of derivatives involves specific risks and is not suitable for all investors. Each Target Retirement Fund systematically rebalances its allocations in these asset classes to maintain their target weightings. There can be no assurance that rebalancing will achieve its intended result, and the costs of rebalancing may be significant over time.

While diversification and shifting to a more conservative investment mix over time help to manage risk, they do not guarantee earnings growth. There is the potential to lose money in any investment program. You do not have the ability to actively manage the investments within a Target Retirement Fund. The portfolio managers control security selection and asset allocation.

Total Expense Ratio for Target Retirement FundsInvestment Option Expense Ratio Investment Option Expense Ratio Investment Option Expense Ratio

Target Retirement 2005 Fund 0.14% Target Retirement 2025 Fund 0.14% Target Retirement 2045 Fund 0.14%



Target Retirement 2020 Fund 0.14% Target Retirement 2040 Fund 0.14%

The above estimated fees, which include projected operating expenses and investment management fees as of December 31, 2010, may change.

Target Retirement Funds

19

FUND FACT SHEETS

21

FUND FACT SHEETS

23

FUND FACT SHEETS

25

FUND FACT SHEETS

The UTC Savings Plan is intended to be a “Section 404(c) plan” within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended from time to time. As a Section 404(c) plan, the Savings Plan provides participants with substantial benefits – but also comes with substantial responsibilities. For example, the Savings Plan offers participants a broad range of investment options, as well as access to sufficient information and tools to help you make informed investment decisions. The Savings Plan also permits you to move your assets between investment options at virtually any time, subject to reasonable “excessive trading” rules. But Savings Plan participation (like participation in any Section 404(c) plan) also comes with important responsibilities. Perhaps most importantly, you are solely responsible for investment decisions and the results of those investment decisions. This means that neither UTC, the Plan, the Plan’s Administrator, nor any fiduciary has any legal liability if you suffer any investment losses as a result of your decision to participate in this Plan. In the event of any conflict between the information in this document and the UTC Employee Savings Plan and UTC Represented Employee Savings Plan documents, the plan documents will govern. Please keep in mind that UTC has the right to terminate the Plan or to change any of its terms, including its benefits formula, at any time.

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