Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 177

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 177
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 date.

Cash FlowsEstimated Future Benefit Payments.  The following table sets forth the estimated future benefit payments under the benefit plans.Estimated Future Benefits PaymentsAt September 30, 2025(in millions) PensionBenefits(1)Other Post-Retirement Benefits2026$827 $17 2027826 17 2028826 16 2029819 16 2030808 16 2031 - 20353,885 93 Note(1)  Participants are assumed to receive the Fixed Fund in a lump sum in lieu of available annuity options 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