Exhibit 10.1
THE PEP BOYS —
MANNY, MOE & JACK PENSION PLAN
AMENDMENT 2009-1
Pursuant to the authority reserved
to it under Section 8.2 of The Pep Boys — Manny,
Moe & Jack Pension Plan (the “Pension Plan”),
the Administrative Committee for the Pension Plan (the
“Committee”) hereby amends the Pension Plan as
follows:
1.
Article IX of the Plan is
hereby amended to add a new Section 9.4B to read in its
entirety as follows:
9.4B
Maximum Annual Retirement
Allowance for Limitation Years beginning on or after July 1,
2007 . Except as
otherwise provided below, the provisions of this Section shall
be effective as of the first Limitation Year beginning on or after
July 1, 2007. The limitations, adjustments and other
requirements prescribed herein shall at all times comply with the
provisions of section 415 of the Code and the final regulations
thereunder, the terms of which are specifically incorporated herein
by reference.
(a)
Notwithstanding anything in the Plan
to the contrary, in no event shall the combined Annual Benefit
payable with respect to a Participant on a single life basis under
this or any other defined benefit plan maintained by the Employer
or any Affiliate under which the Participant is covered as a
participant exceed the lesser of: (1) $160,000 (or such other
figure determined in accordance with the cost of living adjustment
procedure under section 415(d) of the Code and Treas. Reg.
Section 1.415(d)-1(a), but only for the year in which such
adjustment is effective); and (2) 100% of the
Participant’s average annual Compensation during the three
consecutive years (as adjusted pursuant to section 415(d) of
the code and Treas. Reg. sections 1.415(d)-1(a) and
1.415(b)-1(a)) in which the Participant received the greatest
amount of Compensation. The Plan may use any 12-month period
to determine a year of service, provided that such period is
determined consistently and applied uniformly to all Participants.
Such 12 month period shall be the Plan Year. For a
Participant who is employed by the Employer for fewer than three
consecutive years, the period of the Participant’s high three
years of service is the actual number of consecutive years of
service (including fractions of a year, but not less than one
year). With respect to a Participant who incurs a break in
service and is rehired by the Employer, the Participant’s
high three years of service shall be calculated by excluding all
years for which the Participant performs no services for and
receives no Compensation from the Employer maintaining the Plan and
by bridging the years of service before and after the break in
service and treating such years as if they were
consecutive.
(b)
Notwithstanding subsection
(a) of this Section, benefits up to $10,000 for a Limitation
Year may be paid without regard to the 100% of Compensation
limitation if the total retirement benefits payable to a
Participant under all defined benefit plans maintained by the
Employer and any Affiliate for the present and any prior Limitation
Year do not exceed $10,000 and the Employer (or a predecessor
employer) and any Affiliate has not at any time maintained a
defined contribution plan in which the Participant was
covered. For purposes of determining the $10,000 amount, the
benefit payable with respect to the Participant under a plan for a
Limitation Year reflects all amounts payable under the plan for the
Limitation Year (except
as otherwise provided in Treas. Reg.
Section 1.415(d)-1) and are not adjusted for form of benefit
or commencement date.
(c)
If a Participant has multiple
Annuity Starting Dates, the limitations of section 415 of the Code
and the regulations thereunder must be met separately as of each of
Annuity Starting Date taking into account the benefits that have
been or will be provided as of each Annuity Starting
Date.
(d)
If a Participant’s Annual
Benefit (or a retirement benefit to which the Participant is
entitled under any other defined benefit plan maintained by the
Employer or any Affiliate) is payable in a form other than a single
life annuity or qualified joint and survivor annuity, the Annual
Benefit shall be converted to a single life annuity using the
interest rate and mortality assumptions specified in the Plan for
Actuarial Equivalence for the particular form of benefit
payable. The single life annuity, which has been so
determined shall be compared to the single life annuity that has
the same actuarial present value as the form of benefit payable to
the Participant, computed using a 5 percent interest rate
assumption (or for any form of benefit subject to section
417(e)(3) of the Code, the Applicable Interest Rate and the
Applicable Mortality Table. The greater of these two amounts
shall be the applicable limit for the Annual Benefit payable in a
form other than a single life annuity or qualified joint and
survivor annuity.
Notwithstanding the foregoing, the following
shall not be taken into account: any ancillary benefit that is not
related to retirement income benefits; and the survivor annuity
provided under the portion of any annuity that constitutes a
qualified joint and survivor annuity (as defined in section
417(b) of the Code).
(i)
For purposes of the adjustment set
forth above, for the Plan Years commencing on January 1, 2004
and January 1, 2005, for any form of benefit subject to
section 417(e)(3) of the Code, for purposes of the adjustment
set forth in this subsection (d), the Applicable Interest Rate
above shall not be less than 5.5%.
(ii)
For Plan Years beginning on or after
Januar
