Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 267

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 267
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 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 nonqualified excess 401(k) plan, to allow certain eligible employees whose contributions to the 401(k) plan are limited by IRS rules to save additional amounts for retirement and receive non-elective and matching employer contributions.  Additionally, the RP, which previously prohibited participation by any TVA executive who was a participant in the SERP, was amended to authorize participation for all executives otherwise entitled to participate, effective October 1, 2025.  TVA recognized RP benefit costs of $2 million in 2025, $1 million in 2024, and less than $1 million in 2023. 

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Other Post-Retirement Benefits.  TVA sponsors two unfunded post-retirement benefit plans that provide for non-vested contributions toward the cost of certain eligible retirees' medical coverage.  The first plan covers only certain retirees and surviving dependents who do not qualify for TVARS benefits, including the supplemental pension benefit.  The second plan is designed to place a limit on the out-of-pocket amount certain eligible retirees pay for medical coverage and provides a credit based on years