Freescale Benefit Letter

Date: 31 May 2005
To:     Retirees Participating in Freescale Rewards Plans
From: Margie DeHaan
Director, Global Rewards

Subject:        An update on simplifying your Freescale Benefits

Over the past five months since our separation from Motorola, we’ve made improvements to Freescale’s Rewards programs – with the goal of making access to Rewards easier and simpler. We recognize that the changes necessary to achieve this simplification have been numerous and often, and we appreciate your patience and tolerance. We’ve had our share of growing pains, but ultimately these modifications will result in improved service and delivery of your benefits.

Here are just a few of the improvements we’ve accomplished:

· On 1 January, Humana assumed responsibility for Freescale medical and dental claims processing; to date, we’ve reduced outstanding claims from 60,000 to a best-in-class turnaround of less than five days for each submitted claim.

· On 29 April, Hewitt assumed responsibility for Freescale’s benefits administration, implementing a single sign-in and external Web site for easy 24/7 access to your Rewards information.

· Effective 1 August, you will access your hearing benefits through our retiree medical plan, administered by Humana.

· If you have an active account in the Freescale 401(k) profit-sharing plan, you now have access to GuidedChoice, a service offering unique investment advice to help you manage your profit-sharing plan account. To contact GuidedChoice, go to: http://www.freescale.com/rewards. Click on the ‘Get investment advice from GuidedChoice’ link on the right side of the screen. You can also reach GuidedChoice at: 1 (800) 242.6182.

· As a retiree with an active 401(k) account you also have access to Your Personal Finance Center to help you manage your money. Log onto Your Benefits Resources at: http://www.freescale.com/rewards. You will see a link from the 401(k) savings page which is titled Your Personal Finance Center – IRA’s, 529 plans and Advisors. Click on the link to view financial services available to you.

We hope you’ve begun seeing improvements in service delivery by our Rewards partners. We’ll continue making this type of change to upgrade and simplify your access to benefits. We’re streamlining our retiree medical premium billing and introducing an automatic deduction feature that makes withdrawal and payment of your premiums easy on you.


This Fall, we’ll have another Rewards enrollment. We’re currently studying our plans and will have meetings where you can learn more about the offerings we’ll make for 2006.

Again, thank you for your patience. Going forward, we’ll continue to keep you informed as changes occur.

For now, here’s how you can contact key Rewards partners:

You can contact Hewitt easily by going online at: www.freescale.com/rewards. Or, if you want, you can call Hewitt toll free at 1 (888) FSL-BENS (375-2367) between 8 a.m. – 8 p.m. CST Monday – Friday to speak to a representative.

If you have not previously logged in, you can create a user ID and password online (by identifying yourself as a new user) or call the FSL-BENS number.

You can do the following at the Web site:

1. View your current healthcare coverage
2. Search for doctors, dentists and other healthcare providers
3. View your bills and track your payments
4. Review your summary plan description (SPD).

Our purpose behind this change is to improve customer service to you and your family.
You can also reach our other Rewards partners by calling them directly:

· APS Healthcare (866) 273-2884 (Behavioral health)
· Broadspire (800) 424-6965 (Disability)
· Caremark (877) 505-8360 (Pharmacy)
· CIGNA (800) 244-6224 (HMO)
· E*TRADE (800) 838-0908 (Equity)
· GuidedChoice (800) 242-6182 (Investment advice)
· Healthnet (800) 289-2818 (HMO)
· Humana medical (800) 992-5802 (Medical)
· Humana dental (800) 233-4013 (Dental)
· VSP (800) 877-7195 (Vision)
· Smith Barney (877) 211-1821 (Motorola equity)