Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 273

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 273
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 Accumulated Benefit Obligations in Excess of Plan AssetsAt September 30(in millions) 20252024Accumulated benefit obligation$10,278 $10,971 Fair value of net plan assets8,594 8,673 

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The components of net periodic benefit cost for the years ended September 30, 2025, 2024, and 2023 were as follows:Components of Net Periodic Benefit Cost (1)For the years ended September 30(in millions) Pension BenefitsOther Post-Retirement Benefits 202520242023202520242023Service cost$32 $29 $32 $11 $11 $10 Interest cost526 579 568 17 21 18 Expected return on plan assets(505)(494)(492)— — — Amortization of prior service credit(89)(89)(88)(17)(17)(17)Recognized net actuarial loss (gain)173 99 135 (1)(1)(2)Total net periodic benefit cost137 124 155 10 14 9 Special/contractual termination benefits(2)— — — 1 — — Amount expensed due to actions of regulator— — 77 — — — Total net periodic benefit cost$137 $124 $232 $11 $14 $9 Note  (1)  The components of total benefit cost other than the service cost component are included in Other net periodic benefit cost on the Consolidated Statements of Operations.(2)  Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities. See Note 3 — Restructuring.

Plan Assumptions

Plan assumptions utilized to determine benefit obligations and net periodic benefit costs include discount rates, projected health care cost trend rates, COLAs, expected long-term rate of return on plan assets, rate of increase in future compensation levels, retirement rates, expected timing and form of payments, and mortality rates, of which certain key assumptions are noted below.  Every five years, a formal actuarial experience study that compares assumptions to the actual experience is conducted. Additional ad-hoc experience studies are performed as needed to review recent experience and validate recommended changes to the actuarial assumptions used based upon TVA's latest experience study in 2023.

Actuarial Assumptions Utilized to Determine Benefit Obligations at September