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TVARS Board Holds Quarterly Meeting

The board of directors of the TVA Retirement System held its regular quarterly meeting Friday, March14. The board heard reports from the Investment, Audit and Retirement committees.

Investment Committee

Wilshire Associates, the system’s investment consultant, reviewed investment performance for periods ended Dec. 31, 2013. Performance for the quarter was positive, with the system earning 5.2 percent on investments. For the 12-month period ended Dec. 31, the system earned 15.7 percent.

System earnings during the past year totaled more than $800 million. The system’s annualized returns over the past three-, five- and 10-year periods have been 10.4 percent, 13.6 percent and 7.1 percent, respectively.

Other topics discussed during the Investment Committee meeting:

  • Trade cost analysis
  • Investment managers’ compliance
  • Investment manager guideline revisions
  • Due diligence meetings with current and potential investment managers
  • Asset transfers
  • 401(k) Plan fund performance
  • Risk allocation review
  • Funded status review

Audit Committee

E.H. Johnson & Co., the system’s compliance auditor, provided the board with its report on Agreed-upon Procedures for 2013. The procedures assist the board in evaluating internal accounting controls and assist external auditors in the detailed testing for their audits of the system and the 401(k) Plan. There was no exception found during this internal accounting control audit and the board voted to accept the report.

The board met with representatives from Crowe Horwath LLP, the external auditor for TVARS, to discuss the fiscal year 2013 audit and annual report, which will be released soon.

The board also received a legal update from its outside counsel.

Retirement Committee

The board accepted the Sept. 30, 2013, Actuarial Valuation Report, performed by system actuary Mercer Human Resource Consulting. The report is the annual valuation of the system’s liabilities and is disclosed as part of the footnotes to the audited financial statements in the annual report.

The board met with representatives from Mercer to discuss long-term funding alternatives.

The board also adopted a resolution regarding benefits paid upon the death of a retiree or beneficiary. To be consistent with Social Security and other federal pension plans, the board voted 6 to 1 to accrue benefits on a monthly basis and to no longer pay pro-rated benefits for the month in which an individual dies. This change will not impact payments for continuing monthly benefits nor will it impact any lump-sum survivor options elected by retirees.

New chairman, vice chairman elected

Also during the meeting, Allen Stokes was elected chairman of the TVARS board and Tony Troyani was elected vice chairman. Standing committees were also approved and are available on the TVARS website.

Questions

The TVARS board is committed to providing accurate and timely information to employees and retirees.

Anyone with questions can contact Retirement Management by email at retsvcs@tva.gov or by phone at 865-632-2672 or 800-824-3870 (toll-free).

 

 

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