Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 442

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 442
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 in the pension plan receive either a traditional final average pay pension or a cash balance pension.  The traditional pension benefit is based on the participant's creditable service, average monthly salary for the participant's highest three consecutive years of eligible compensation, and a pension factor based on the participant's age and years of service, less a Social Security offset.  The cash balance pension benefit is based on pay and interest credits accumulated in the participant's account and the participant's age.

    Participants in the pension plan are also eligible to receive 401(k) plan matching contributions, may be eligible to receive 401(k) plan non-elective contributions, and may be eligible to make after-tax contributions of up to $10,000 per year to the pension plan, which at the election of the participant are invested in either the fixed fund, which receives a fixed interest rate set forth in the plan, or the variable fund, which receives a rate of return based on an S&P 500 index fund.  Participants in the pension plan may also become eligible for a supplemental pension benefit based on age and years of service at retirement, which is provided to help offset the cost of retiree medical insurance.  Employees first hired on or after July 1, 2014, are participants in the 401(k) plan only and receive both non-elective and matching contributions to their accounts in the 401(k) plan.

    401(k) Plan.  Under the 401(k) plan, the non-elective and matching contributions TVA makes to participant accounts depends on the employee's hire date, years of service, and individual elections.  Non-elective employer contributions for eligible participants range from three percent to six percent and matching employer contributions range from 1.5 percent to six percent.  TVA recognized 401(k) contribution costs of $124 million, $116 million, and $105 million during 2025, 2024, and 2023, respectively.  

Supplemental Executive Retirement Plan.  The SERP was established for certain executives in critical positions to 

provide supplemental pension benefits tied to compensation that exceeds limits imposed by IRS rules applicable to the qualified 

defined benefit pension plan.  In July 2025, the SERP was amended so that participants will cease accruing new benefits on September 30, 2025.  Participants will continue to be entitled to receive their accrued benefits as calculated on September 30, 2025.  

Restoration Plan.  TVA established the RP, a non