Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 446

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 446
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enses paid(7)(6)— — Benefits paid(799)(766)(36)(34)Fair value of net plan assets at end of year8,594 8,673 — — Funded status$(1,707)$(2,329)$(291)$(353)Note(1)  Collections include retiree contributions as well as provider discounts and rebates.(2)  The 2025 pension obligation plan curtailment gain is a result of the amendments to the TVA SERP in which participants ceased accruing new benefits effective September 30, 2025.  This reduced the projected benefit obligation by $1 million.

(3)  Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities.  For 2025, the other post-retirement plan recognized a loss that increased the obligation by $1 million as a result of special/contractual termination benefits for certain eligible employees related to TVA’s restructuring activities.  See Note 3 — Restructuring.  

For 2025, the $457 million pension benefit obligation actuarial gain was primarily due to the increase in the discount rate from 4.95 percent to 5.47 percent, which decreased the liability by $514 million.  These gains were primarily offset by a $39 million actuarial loss due to observed plan experience and an $18 million actuarial loss from assumption changes due to higher Cost of Living Adjustment ("COLA") and higher interest crediting rates than previously assumed. 

For 2024, the $1.1 billion pension benefit obligation actuarial loss was primarily due to the decrease in the discount rate from 5.95 percent to 4.95 percent, which increased the liability by $981 million.  In addition, TVA recognized a $46 million actuarial loss due to higher COLA and higher interest crediting rates than previously assumed, and a $37 million actuarial loss due to observed plan experience.  These losses were offset by a $5 million actuarial gain due to mortality assumption changes.

The other post-retirement actuarial gain for 2025 decreased the benefit obligation by $67 million.  TVA recognized a $24 million actuarial gain from the increase in the discount rate from 5.00 percent to 5.62 percent.  In addition, TVA recognized a $28 million gain due to the change in the post-Medicare