Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 445

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 445
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 is established.Asset Method.  TVA's asset method calculates a market-related value of assets ("MRVA") that recognizes realized and unrealized investment gains and losses over a three-year smoothing period to decrease the volatility of annual net periodic pension benefit costs.  The MRVA is used to determine the expected return on plan assets, a component of net periodic pension benefit cost.  The difference in the expected return on the MRVA and the actual return on the fair value on plan assets is recognized as an actuarial (gain)/loss in the pension benefit obligation at September 30.  However, the MRVA has no impact on the fair value of plan assets measured at September 30.

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Obligations and Funded Status

The changes in plan obligations, assets, and funded status for the years ended September 30, 2025 and 2024, were as follows:Obligations and Funded StatusFor the years ended September 30(in millions)859,400,000 Pension BenefitsOther Post-Retirement Benefits867,300,000 2025202420252024Change in benefit obligation    Benefit obligation at beginning of year$11,002 $10,099 $353 $347 Service cost32 29 11 11 Interest cost526 579 17 21 Plan participants' contributions3 3 — — Collections(1)— — 12 12 Actuarial (gain) loss (457)1,059 1.1(67)(4)Curtailments (2)(1)— — — Special/contractual termination benefits (3)— — 1 — Net transfers (to) from variable fund/401(k) plan2 5 — — Expenses paid(7)(6)— — Benefits paid(799)(766)(36)(34)Benefit obligation at end of year10,301 11,002 291 353 Change in plan assets    Fair value of net plan assets at beginning of year8,673 8,129 — — Actual return on plan assets412 1,004 — — Plan participants' contributions3 3 — — Collections(1)— — 12 12 Net transfers (to) from variable fund/401(k) plan2 5 — — Employer contributions310 304 24 22 Exp