APS 2014 Annual Report Download - page 9

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December 31, 2014 and 2013, ranged from 4.25% to 10.50%. As of December 31, 2014, participant loans have maturities through
2029.
Loans are treated as an investment of the participant’s accounts. To fund the loan, transfers are made from the participant’s
investment funds on a pro-rata basis. Amounts credited to a participant’s SDA are not available for a loan. Loan repayments are
invested in the participant’s investment funds based on the participant’s current investment election or in the QDIA, if the participant
does not have a current investment election in place. Loan repayments, including interest, are generally made through irrevocable
payroll deductions. Loan repayments for former participants are made through the automated clearing house system. Loans are
secured by the participant’s account balance.
Vesting
Each participant is automatically fully vested in the participant’s pretax contributions account, Roth 401(k) contributions
account, after-tax contributions account, rollover contributions account (if any), in-plan Roth conversions (if any) (consisting of the
participant’s contributions and related income and appreciation or depreciation), Employer transfer account, and Employer
contributions account (consisting of Employer contributions and related income and appreciation or depreciation). Former participants
who terminated employment prior to April 1, 2006 were fully vested in their Employer contributions account if their termination was
due to death or disability, was after attaining age 65, or was after completing five years of participation in the Plan. Former participants
who terminated prior to April 1, 2006 and return to service after that date can complete the five year requirement by no later than
March 31, 2016, based on a graduated vesting schedule with 100% vesting after five years of service.
Withdrawals and Distributions
A participant may at any time make a full or partial withdrawal of the balance in the participant’s after-tax contributions
account, rollover contributions account (if any), and in-plan Roth conversions (if any). No withdrawals prior to termination of
employment are permitted from a participant’s Employer transfer account. No withdrawals prior to termination of employment are
permitted from the participant’s pretax contributions account and Roth 401(k) contributions account, except under certain limited
circumstances relating to financial hardship or after attaining age 59-1/2. If an employee withdraws pretax or Roth 401(k) contributions
due to financial hardship, the only earnings on pretax contributions that can be withdrawn are those credited prior to January 1, 1989,
and no earnings on Roth 401(k) contributions can be withdrawn. Employees taking a financial hardship are subsequently suspended
from making contributions to the Plan for six months. Participants who have participated in the Plan for five complete Plan years may
withdraw the amount in their Employer contributions account. Participants who are at least age 59-1/2 may withdraw any portion of
their pretax contributions account, Roth 401(k) contributions account, rollover contributions account (if any), or in-plan Roth
conversions (if any) while employed with no restrictions on the reason for withdrawal, and penalties do not apply. Amounts credited to
a participant’s SDA are not available for a withdrawal until transferred back into the Funds. When the participant’s employment with
the Employer is terminated, the participant can elect to receive a full or partial distribution, as soon as administratively possible, of the
vested portion of their Employer contributions account together with the participant’s contributions accounts and Employer transfer
account.
Forfeitures
For former participants who terminated employment prior to April 1, 2006, forfeitures of non-vested Employer contributions
occurred upon the earlier of full distribution following termination of employment with the Employer or the end of the fifth calendar
year following the calendar year in which the participant
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