Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 288

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 288
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 allowed for certain grandfathered participants resulting in higher estimated pension benefits payments.

Contributions.  TVA made contributions to the pension plan of $300 million for 2025 and 2024.  TVA has committed to make a minimum contribution of $300 million per year through 2036 or until the plan has reached and remained at 100 percent funded status under the actuarial rules applicable to TVARS.  TVA made SERP contributions of $10 million and $4 million for 2025 and 2024, respectively.  TVA made cash contributions to the other post-retirement benefit plans of $24 million (net of $5 million in rebates) and $22 million (net of $5 million in rebates) for 2025 and 2024, respectively.  In addition, TVA recognized 401(k) contribution costs of $124 million and $116 million for the years ended September 30, 2025 and 2024, respectively.  TVA expects to contribute $300 million to TVARS, $9 million to the SERP, and $17 million to the other post-retirement benefit plans in 2026. 

Other Post-Employment Benefits

    Post-employment benefit cost estimates are revised to properly reflect changes in actuarial assumptions made at the end of each year.  TVA utilizes a discount rate determined by reference to the U.S. Treasury Constant Maturities corresponding to the calculated average durations of TVA's future estimated post-employment claims payments.  The use of a 4.16 percent discount rate resulted in the recognition of $3 million in expenses in 2025 and an unpaid benefit obligation of $233 million at September 30, 2025.  The use of a 3.81 percent discount rate resulted in the recognition of approximately $21 million in expenses in 2024 and an unpaid benefit obligation of $258 million at September 30, 2024.  The use of a 4.59 percent discount rate resulted in the recognition of approximately $(3) million in expenses in 2023 and an unpaid benefit obligation of $266 million at September 30, 2023.  The U.S. Department of Labor ("DOL") administers TVA's worker compensation program and invoices TVA annually for claims processed.

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The decrease in the unpaid obligation at September 30, 2025, compared to the prior year was due primarily to the