APS 2015 Annual Report Download - page 228

such benefits in any form not described in this Section, such as a ten-year certain form described in Section 6.6 of the Retirement
Plan or the over-and-under payment method described in Section 6.7 of the Retirement Plan (the “Over-and-Under Payment
Method”).
(3) Actuarial Adjustments – General Rule. The joint and 50% survivor annuity form shall be fully subsidized
(i.e., the amount of the benefit payable for the participant’s life under the joint and 50% survivor annuity shall be equal to the amount
of the benefit payable for the participant’s life under the life only benefit). Alternate joint and survivor payment forms shall be
actuarially equivalent to the joint and 50% survivor form, using the same actuarial adjustments as provided under the Retirement
Plan. Prior to January 1, 2016, the five-year installment form shall be actuarially equivalent to the single life annuity (increased for
this purpose by the subsidy for the joint and 50% survivor form), but using a discount rate assumption of 6.25% and the mortality
table used by the Company for year-end financial reporting purposes for the calendar year preceding the year in which the five-year
installment benefit commences. On or after January 1, 2016, the five‑year installment form shall be actuarially equivalent to the single
life annuity (increased for this purpose by the subsidy for the joint and 50% survivor form), but using a discount rate assumption of
6.25% and the “applicable mortality table,” as defined in Section 5.19 of the Retirement Plan used by the Company for the calendar
year in which the five‑year installment benefit commences.
(4) Actuarial Adjustments -- Individuals Becoming Participants on or after January 1, 2011 . The provisions
of this Section 5(a)(4) rather than Section 5(a)(3), shall apply to an individual who becomes an Officer on or after January 1, 2011.
For such an individual, the joint and 50% survivor annuity form shall not be fully subsidized. In addition, all alternate payment forms
shall be actuarially equivalent to a life annuity for the life of the participant alone, with the actuarial equivalency to be determined
using the same actuarial adjustments as provided under the Retirement Plan. Prior to January 1, 2016, the five‑year installment form
shall be actuarially equivalent to the life annuity, but using a discount rate assumption of 6.25% and the mortality table used by the
Company for year-end financial reporting purposes for the calendar year preceding the year in which the five-year installment benefit
commences. On or after January 1, 2016, the five-year installment form shall be actuarially equivalent to the life annuity, but using a
discount rate assumption of 6.25% and the “applicable mortality table,” as defined in Section 5.19 of the Retirement Plan used by the
Company for the calendar year in which the five-year installment benefit commences.
(b) Spouse’s Benefit with Respect to Officer Traditional Benefits Described in Sections 4(a)(1) and 4(a)(2)(i).
If a participant entitled to benefits under Section 4(a)(l) or Section 4(a)(2)(i) dies while still employed by the Company or an
Affiliate, the participant's spouse shall be entitled to a one hundred percent (100%) survivor annuity. The one hundred percent (100%)
survivor annuity shall provide a benefit to the participant’s surviving spouse, for the spouse’s life, equal to one hundred percent (100%)
of the monthly benefit for life that the participant would have received under Section 4(a)(l) or Section 4(a)(2)(i) had he or she
(i) terminated employment on the day before he or she died, (ii) survived to the day on which he or she would first be eligible to
commence benefits under
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