Just wait 'til you see his golden parachute...it'll probably be more like a platinum parachute.
Not too shabby a pension benefit for Welch...
Pension Benefits
The following table provides information regarding pension benefits for our NEOs eligible for pension benefits for the year ended December 31, 2016.
Name
Plan Name No. of Years
Credited
Service
(#) (1) Present Value of
Accumulated
Benefit
($) (2) Payments
During Last
Fiscal Year
($)
James L. Welch
Yellow Corporation Pension Plan 28 1,111,000 —
Darren D. Hawkins
Yellow Corporation Pension Plan 18 191,000 —
(1) Effective July 1, 2008, benefit accruals under all plans and agreements were frozen.
(2) In calculating the present value of the accumulated pension benefit, the following assumptions were used:
(a) a FASB ASC Topic 715 discount rate of 4.81%;
(b) an expected retirement age of 65, which is the normal retirement age in the Yellow Corporation Pension Plan, except that an expected retirement age of 62 for Mr. Welch was used because that is the earliest age at which he could retire under the applicable plan without benefit reduction;
(c) the RP-2014 combined table, using a custom MP-2016 scale, was used as the post-retirement mortality table and no table was used for pre-retirement mortality; and
(d) a discount percentage of 4.81% was used to calculate the lump sum distribution.
Yellow Corporation Pension Plan
The Yellow Corporation Pension Plan, a noncontributory defined benefit plan, was frozen to new employees after December 31, 2003. Benefit accruals under the plan were frozen on July 1, 2008. Plan benefits are calculated based solely on salaries and cash annual incentive compensation earned before July 1, 2008. Participants are vested after five years of service.
Mr. Welch and Mr. Hawkins will be entitled to an annual pension benefit (single life annuity) at age 65 of $80,395 and $16,953, respectively. If a participant is age 55 to 65 and has 10 or more years of credited service, he or she is eligible for early retirement, subject to reduction of his or her accrued benefit. For example, the accrued benefit is reduced to 40% of the full age 65 benefit at age 55, 60% at age 60 and 90% at age 64. Mr. Welch, who is 62, is the only current NEO eligible for early retirement under the plan.
Source...YRCW Proxy Report (DEF 14A) dated 3-21-2017
And don't forget that big pension check every month is in addition to his generous 401-K, IRA, etc. I guess we won't have to take up a collection for his retirement next summer for him will we?