YUM! BRANDS, INC.
PENSION EQUALIZATION PLAN
(PEP)
Plan Document for the Section 409A Program
(January 1, 2005 Restatement, As Amended Through January 1, 2017)
YUM! BRANDS, INC. PENSION EQUALIZATION PLAN
Table of Contents
Page No.
ARTICLE I
1
FOREWORD
1
DEFINITIONS AND CONSTRUCTION
3
2.1
DEFINITIONS:
3
2.2
CONSTRUCTION:
18
ARTICLE III
20
PARTICIPATION AND SERVICE
20
3.1
PARTICIPATION:
20
3.2
SERVICE:
20
3.3
CREDITED SERVICE:
20
ARTICLE IV
22
REQUIREMENTS FOR BENEFITS
22
4.1
NORMAL 409A RETIREMENT PENSION:
22
4.2
EARLY 409A RETIREMENT PENSION:
22
4.3
409A VESTED PENSION:
22
4.4
LATE 409A RETIREMENT PENSION:
23
4.5
409A DISABILITY PENSION:
23
4.6
PRE-RETIREMENT SPOUSE'S 409A PENSION:
23
4.7
VESTING:
25
4.8
TIME OF PAYMENT:
25
4.9
CASHOUT DISTRIBUTIONS:
25
4.10
REEMPLOYMENT OF CERTAIN PARTICIPANTS:
28
AMOUNT OF RETIREMENT PENSION
30
5.1
PARTICIPANT'S 409A PENSION:
30
5.2
PEP GUARANTEE:
30
5.3
AMOUNT OF PRE-RETIREMENT SPOUSE'S 409A PENSION:
36
5.4
CERTAIN ADJUSTMENTS:
39
5.5
EXCLUDABLE EMPLOYMENT:
40
5.6
PRE-409A PENSION:
40
DISTRIBUTION OF BENEFITS
41
6.1
FORM AND TIMING OF DISTRIBUTIONS:
41
6.2
AVAILABLE FORMS OF PAYMENT:
44
6.3
PROCEDURES FOR ELECTIONS:
47
6.4
DETERMINATION OF MARITAL STATUS:
49
6.5
DESIGNATION OF BENEFICIARY:
50
6.6
REQUIRED DELAY FOR KEY EMPLOYEES:
51
6.7
PAYMENT OF FICA AND RELATED INCOME TAXES:
52
6.8
CORRECTION OF PAYMENTS AFFECTED BY OTHER NONQUALIFIED PLANS.
54
ADMINISTRATION
56
7.1
AUTHORITY TO ADMINISTER PLAN:
56
7.2
FACILITY OF PAYMENT:
56
7.3
CLAIMS PROCEDURE:
57
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YUM! BRANDS, INC. PENSION EQUALIZATION PLAN
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7.4
PLAN ADMINISTRATOR DISCRETION:
58
MISCELLANEOUS
60
8.1
NONGUARANTEE OF EMPLOYMENT:
60
8.2
NONALIENATION OF BENEFITS:
60
8.3
UNFUNDED PLAN:
60
8.4
ACTION BY THE COMPANY:
61
8.5
INDEMNIFICATION:
61
8.6
COMPLIANCE WITH SECTION 409A:
61
8.7
SECTION 457A.
62
8.8
MISCONDUCT.
64
8.9
MISSING PARTICIPANTS OF BENEFICIARIES:
66
AMENDMENT AND TERMINATION
67
9.1
CONTINUATION OF THE PLAN:
67
9.2
AMENDMENTS:
67
9.3
TERMINATION:
68
9.4
CHANGE IN CONTROL:
68
ERISA PLAN STRUCTURE
69
APPLICABLE LAW
71
SIGNATURE
72
APPENDIX ARTICLE A
74
TRANSITION PROVISIONS
74
A.1
SCOPE.
74
A.2
DEFINITION OF ACTUARIAL EQUIVALENT.
74
A.3
TRANSITION RULES FOR ARTICLE VI (DISTRIBUTIONS):
74
A.4
CONFORMANCE WITH SECTION 409A:
75
A.5
EMIL BROLICK-19(C):
76
A.6
CERTAIN 19(C) ELECTIONS:
76
APPENDIX ARTICLE B
78
COMPUTATION OF EARNINGS AND SERVICE
78
DURING CERTAIN SEVERANCE WINDOWS
78
B.1
DEFINITIONS:
78
B.2
INCLUSION OF SALARY AND ELIGIBLE BONUS:
78
B.3
INCLUSION OF CREDITED SERVICE:
79
B.4
INCLUSION OF SERVICE:
79
B.5
REDUCTION TO REFLECT EARLY PAYMENT:
80
APPENDIX ARTICLE C
81
CEO'S PENSION
81
C.1
SCOPE AND PURPOSE:
81
C.2
FREEZE AS OF JANUARY 1, 2012:
81
C.3
EARLY COMMENCEMENT REDUCTION:
82
C.4
DETERMINATION OF PENSION BEGINNING JANUARY 1, 2013.
82
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DE-GRANDFATHERED PARTICIPANTS
85
D.1
SCOPE:
85
D.2
MARCH 1, 2010 DE-GRANDFATHERING:
85
D.3
DE-GRANDFATHERING OF CERTAIN PRE-2005 PARTICIPANTS FOR 2012 LUMP SUM WINDOW:
86
D.4
FURTHER DE-GRANDFATHERING OF PARTICIPANTS UNDER THE 409A PROGRAM:
87
APPENDIX ARTICLE P
88
RETIREMENT WINDOW BENEFIT