APS 2015 Annual Report Download - page 230

under the life only annuity benefit). The other joint and survivor annuity forms of benefit shall be actuarially equivalent to the joint
and 50% survivor annuity form of benefit, using the actuarial assumptions in the Retirement Plan. Prior to January 1, 2016, the five-
year installment form shall be actuarially equivalent to the lump sum benefit (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 lump sum benefit (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.
(2A) Actuarial Adjustments -- Individuals Becoming Participants on or after January 1, 2011. The provisions
of this Section 5(c)(2A), rather than Section 5(c)(2), 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, the life annuity form of
benefit shall be actuarially equivalent to the participant’s Retirement Account Balance, using the actuarial factors set forth in the
Retirement Plan. Any joint and survivor annuity forms shall be actuarially equivalent to the life annuity form, using the actuarial factors
set forth in the Retirement Plan. Prior to January 1, 2016, the five‑year installment form shall be actuarially equivalent to the lump sum
benefit, 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 lump sum benefit, 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.
(3) Payment Upon Death. If a participant dies before commencement of benefits described in Sections 4(a)(2)(ii) or
4(a)(3), such benefits shall be paid to the participant’s spouse or beneficiary in a lump sum upon the participant’s death.
(d) Other Approved Participants’ Traditional and Retirement Account Balance Benefits Described in Section 4(b).
(1) Form of Payment – Traditional Benefits. This section governs the election of the form of payment of Other
Approved Participants' benefits which supplement benefits described in Sections 5.1(a) and 5.1(b) of the Retirement Plan
(“Traditional Benefits”). A participant may elect to receive Traditional Benefits in any form permitted under the Retirement Plan
except for the Over-and-Under Payment Method. In addition, a participant who commences benefits after 2007 shall have a five-year
installment option with respect to any Traditional Benefits payable after 2008. However, a participant must elect the five-year
installment form of benefit on or before the later of December 31, 2008 or the day before the Committee designates the individual as
a participant in this Plan. If a participant has not elected the five-year installment
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