Amendment No. 7 to Yellow Corporation Pension Plan by YRC Worldwide Inc.
YRC Worldwide Inc. has amended the Yellow Corporation Pension Plan, which provides retirement benefits to its employees and those of its affiliates. This amendment, effective January 1, 2002, clarifies how pension distributions must comply with specific IRS requirements and Treasury Regulations to ensure proper tax treatment. It also updates the rules for certain distributions, changing the applicable period from one year to five years in some cases. The amendment was executed by an authorized company officer on June 21, 2010.
Exhibit 10.7
AMENDMENT NO. 7
YELLOW CORPORATION PENSION PLAN
WHEREAS, YRC Worldwide Inc. (the “Company”) maintains the Yellow Corporation Pension Plan (the “Plan”) for the benefit of employees of the Company and its participating affiliates; and
WHEREAS, Article XI of the Plan authorizes the Company to amend the Plan at any time in its discretion; and
WHEREAS, as part of a pending determination letter application for the Plan, the Internal Revenue Service has requested that certain clarifying amendments be made to the Plan;
NOW, THEREFORE, effective January 1, 2002, the Plan is clarified and amended as follows:
A. Section 5.6 is amended by adding the following two new subparagraphs (d) and (e) to end of such Section:
(d) Incidental Benefits Requirements. In all events, distributions made pursuant to this Section 5.6 shall be made in a manner which satisfies the incidental benefit requirements of Section 401(a)(9)(G) of the Code.
(e) Incorporation of Treasury Regulations. In all events, distributions made pursuant to this Section 5.6 shall be made in a manner which satisfies the requirements of Treasury Regulations 1.401(a)(9)-2 through 1.401(a)(9)-9, the terms and conditions of which will override any contrary provision of this Section 5.6 or any other Plan provision.
B. The last sentence of Section 15.1(a) is deleted in its entirety and the following is inserted in lieu thereof:
In the case of a distribution made for a reason other than severance from employment, death, or disability, this provision shall be applied by substituting “five-year period” for “one-year period.”
IN WITNESS WHEREOF, the Corporation has caused this Amendment to be executed by its duly authorized officer on the 21st day of June 2010.
| YRC WORLDWIDE INC. | ||
| By: | /s/ Harold D. Marshall | |
| Name: | Harold D. Marshall | |
| Title: | Vice President – Employee Benefits | |
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