Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 271

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 271
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 obligation actuarial gain was primarily due to the increase in the discount rate from 4.95 percent to 5.47 percent, which decreased the liability by $514 million.  These gains were primarily offset by a $39 million actuarial loss due to observed plan experience and an $18 million actuarial loss from assumption changes due to higher Cost of Living Adjustment ("COLA") and higher interest crediting rates than previously assumed. 

For 2024, the $1.1 billion pension benefit obligation actuarial loss was primarily due to the decrease in the discount rate from 5.95 percent to 4.95 percent, which increased the liability by $981 million.  In addition, TVA recognized a $46 million actuarial loss due to higher COLA and higher interest crediting rates than previously assumed, and a $37 million actuarial loss due to observed plan experience.  These losses were offset by a $5 million actuarial gain due to mortality assumption changes.

The other post-retirement actuarial gain for 2025 decreased the benefit obligation by $67 million.  TVA recognized a $24 million actuarial gain from the increase in the discount rate from 5.00 percent to 5.62 percent.  In addition, TVA recognized a $28 million gain due to the change in the post-Medicare health care cost trend rate due to the Medicare supplement insurance premiums on the private exchange escalating at a lower rate than previously assumed.  Additionally, TVA recognized an 

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$18 million actuarial gain to reflect changes in the observed and anticipated pre-Medicare per capita claims costs and contributions, partially offset by a $3 million actuarial loss primarily due to higher claims costs for 2025 than previously assumed. 

The other post-retirement actuarial gain for 2024 decreased the benefit obligation by $4 million.  TVA recognized a $30 million actuarial gain as a result of updating the pre-Medicare health care cost trend rates to reflect observed and anticipated plan experience.  Based upon results obtained from a study on post-retirement experience conducted in 2024, TVA recognized a  $13 million actuarial gain due to the adoption of a retiree persistency assumption and a $2 million actuarial gain related to changes in the withdrawal assumption rates.  In addition, TVA recognized a $2 million gain due to observed