Pension Plan Coverage. (a) On and after the Closing, Post-Closing Employees shall become participants in a tax-qualified pension plan maintained or to be established by Buyer or an Affiliate of Buyer as of the Closing Date (“Buyer’s Pension”) with full credit for eligibility and vesting purposes (but not for benefit accrual) for service with the Company and/or its Affiliates and predecessor employers prior to the Closing as provided for in Section 7.2. As of the Closing Date, Post-Closing Employees who are participants in the Valero Energy Corporation Pension Plan (“Seller’s Pension Plan”) shall be fully vested in their accrued benefits under Seller’s Pension Plan.
(b) Buyer shall permit each Post-Closing Employee to elect on the Closing Date (or as soon thereafter as reasonably practicable) a direct rollover of his or her eligible rollover distributions under the Valero Energy Corporation Thrift Plan (“Seller’s Savings Plan”) to a tax-qualified deferred contribution plan maintained or to be established by Buyer or an Affiliate of Buyer as of the Closing Date (the “Buyer’s Savings Plan”). Any such rollovers shall be made to the Buyer’s Savings Plan in cash or plan loans. Seller represents, covenants and agrees with respect to the Seller’s Savings Plan, and Buyer represents, covenants and agrees with respect to the Buyer’s Savings Plan, that, as of each date of a rollover described in this paragraph, such plan (i) is intended to satisfy the requirements of Section 401(a) and (k) of the Code and (ii) will have received, or an application will be timely filed for, a favorable determination letter from the Internal Revenue Service regarding such qualified status. Buyer will have no obligation with respect to amounts attributable to Seller’s Savings Plan other than acceptance of the rollovers requested by Post-Closing Employees. Seller shall take (or shall cause its Affiliates to take) any action required to ensure that Post-Closing Employees who are participants in the Seller’s Savings Plan shall be fully vested in their accounts in the Seller’s Savings Plan.
Pension Plan Coverage. (i) The Buyer acknowledges and the Company agrees that the Company shall withdraw as a Participating Company from the Shell Pension Plan, the Shell Provident Fund, the Shell Pay Deferral Investment Fund, and certain other benefit plans and arrangements sponsored by Shell and its Affiliates, immediately prior to the Closing Date. Effective as of the Closing Date, the Buyer shall as soon as practical amend the Tesoro Petroleum Corporation Thrift Plan to add the Company as a sponsor, and to permit Continuing Nonrepresented Employees to participate therein effective as of their Employment Commencement Dates. The Buyer shall enhance the Tesoro Petroleum Corporation Thrift Plan to make it more comparable to the Shell Provident Fund by increasing the dollar-for-dollar match to a maximum of six (6) percent of "compensation" within the meaning of the Tesoro Petroleum Corporation Thrift Plan ("Buyer Compensation") and contributing for the account of each Continuing Nonrepresented Employee from the Employment Commencement Date until December 31, 2001, (the "Supplemental Period") an additional contribution equal to four (4) percent of his or her Buyer Compensation in a supplemental defined
(ii) As soon as practicable following the Closing Date but no later than three (3) months following the Closing Date, to the extent permitted by section 401(k)(10)(A)(iii) of the Internal Revenue Code of 1986, as amended, and to the extent directed by an Continuing Nonrepresented Employee, the Seller shall cause the Shell Pay Deferral Investment Fund to make direct rollovers (including rollovers of participant loans) to the Tesoro Petroleum Corporation Thrift Plan, provided the Buyer provides the Seller with satisfactory evidence of such plan's then qualified status and provided further that such plan shall be amenable to accepting such rollover.
Pension Plan Coverage a. Full-time and part-time covered employees who were employed in covered jobs as of the date those jobs first were added to this Addendum pursuant to Section 1 above shall be transitioned to the UPS/IBT Full-time Pension Plan or the UPS Pension Plan, as applicable, consistent with the terms of Article 34, Sections 1(i) and 1(l) of the NMA. The transition shall be effective on the date this Addendum becomes effective for a covered employee. Company service for these covered employees shall be counted for purposes of vesting and determining eligibility for a service pension under these plans. Covered employees hired prior to January 1, 2008 who are participants in the UPS Retirement Plan shall continue to earn benefit subsidy service credit where applicable in the UPS Retirement Plan while covered by this Addendum in the same manner as they did immediately prior to being covered by the Addendum. The UPS Retirement Plan and the benefits it provides shall be offered on the same terms as for other non-bargaining unit employees. Any pension earned pursuant to the terms of the UPS/IBT Full-time Pension Plan or the UPS Pension Plan will not however, include the amount of the pension a covered employee receives or is entitled to receive under the UPS Retirement Plan. A covered employee’s combined benefit will equal the service pension benefit if paid at the same time and in the same form.
b. Full-time and part-time covered employees who enter a covered job after the date this Addendum becomes applicable to the covered jobs shall be provided pension benefits in accordance with the terms of Article 34 of the NMA and the applicable SRA.
