Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 447

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 447
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 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 plan experience.  These gains were partially offset by a $43 million actuarial loss from the decrease in the discount rate from 6.05 percent to 5.00 percent.

Amounts related to these benefit plans recognized on TVA's Consolidated Balance Sheets consist of regulatory assets  and liabilities that have not been recognized as components of net periodic benefit cost at September 30, 2025 and 2024, and the funded status of TVA's benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations:Amounts Recognized on TVA's Consolidated Balance SheetsAt September 30(in millions) Pension BenefitsOther Post-Retirement Benefits 2025202420252024Regulatory assets (liabilities)$1,531 $1,979 $(131)$(81)Accounts payable and accrued liabilities(9)(6)(17)(20)Pension and post-retirement benefit obligations(1)(1,698)(2,323)(274)(333)Note

(1)  The table above excludes $208 million of post-employment benefit costs and $3 million of RP costs at September 30, 2025, and $230 million of post-employment benefit costs and $1 million of RP costs at September 30, 2024 that are recorded in Post-retirement and post-employment benefit obligations