Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 450

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 450
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 The CY rate for 2026 is assumed to be 2.49 percent, and for years thereafter the ultimate rate is used.

135

Actuarial Assumptions Utilized to Determine Net Periodic Benefit Cost for the Years Ended September 30 (1) Pension BenefitsOther Post-Retirement Benefits 202520242023202520242023Discount rate4.95%5.95%5.60%5.00%6.05%5.65%Expected return on plan assets(2)6.50%6.50%6.50%N/AN/AN/AWeighted average interest crediting rate5.11%5.13%5.14%N/AN/AN/ACost of living adjustment (COLA)(3)2.00%2.00%2.00%2.00%2.00%2.00%Average rate of compensation increase3.96%4.01%3.28%N/AN/AN/APre-Medicare eligible per capita claims costsCurrent health care cost trend rateN/AN/AN/A7.25%7.50%7.00%Ultimate health care cost trend rateN/AN/AN/A5.00%5.00%5.00%Year ultimate trend rate is reachedN/AN/AN/A203420342031Pre-Medicare eligible per capita contributionsCurrent health care cost trend rateN/AN/AN/A7.25%5.00%5.00%Ultimate health care cost trend rateN/AN/AN/A5.00%5.00%5.00%Year ultimate trend rate is reachedN/AN/AN/A203420222022Post-Medicare eligibleCurrent health care cost trend rateN/AN/AN/A—%—%—%Ultimate health care cost trend rateN/AN/AN/A4.00%4.00%4.00%Year ultimate trend rate is reachedN/AN/AN/A202620262026

Notes

(1)  The actuarial assumptions used to determine the benefit obligations at September 30 of each year are subsequently used to determine net periodic benefit cost

for the following year except the assumptions rate of compensation increase and weighted average interest crediting rate.

(2)  The actual return on assets for 2025, 2024, and 2023 was 4.90 percent, 12.72 percent, and 6.