APS 2015 Annual Report Download - page 232

of 6.25% and the mortality assumption 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 for the Traditional Benefit or the lump sum for the Retirement Account
Balance 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.
(5) Time and Form of Benefits Payable Upon Death. In the event a participant dies before Traditional Benefits
described in Section 4(b) commence, benefits shall be paid to the surviving spouse for his or her life commencing as follows: (i) upon
death if at the time of such death the participant has either attained age sixty-five (65) or has both attained age fifty-five (55) and
completed ten (10) Years of Service; or (ii) age sixty-five (65) if at the time of such death the participant has neither attained age
sixty-five (65) nor both attained age fifty-five (55) and completed ten (10) Years of Service. In the event that the participant dies
before Retirement Account Balance Benefits described in Section 4(b) commence to the participant, then such benefits shall be paid
to the participant’s spouse or beneficiary in a lump sum upon the participant’s death.
(e) Change in Time and Form of Payment.
A participant may change an election as to the time and form of payment of his or her benefits if an election is filed in
accordance with rules established by the Committee, provided (i) such election must not take effect until at least twelve months after
the date on which the election is properly filed, (ii) the first payment with respect to which such election is made must be deferred for a
period of not less than five years from the date such payment would otherwise have been made, and (iii) any election related to a
payment that was otherwise to be made at a specified time may not be made less than twelve months prior to the date of the first
scheduled payment. Any such change in election must provide for payment at a time permitted under the Retirement Plan and a form
permitted under this Plan.
(f) Cash-Out Provisions.
(1) If the present value of a participant’s or Spouse’s or Vested Survivor’s vested Traditional Benefit under the Plan
is less than the limit described in Code Section 402(g) upon the participant’s death, retirement, or other separation from service which
occurs after 2008, the participant’s or Spouse’s or Vested Survivor’s vested Traditional Benefit shall immediately be distributed in a
single lump sum. If the value of a participant’s or Spouse’s or Vested Survivor’s vested Retirement Account Balance Benefit plus the
participant’s vested benefit under the Pinnacle West Capital Corporation Deferred Compensation Plan of 2005 for Employees of
Pinnacle West Capital Corporation and Affiliates is less than the limit described in Code Section 402(g) upon the participant’s
retirement, death, or other separation from service which occurs after 2008, such vested Retirement Account Balance Benefit shall
immediately be distributed in a single lump sum. The benefits of a non-vested participant shall automatically be deemed to be cashed
out pursuant to this Section 5(f) upon such participant’s separation from service.
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