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TVARS Board Holds Quarterly Meeting

 

TVA Retirement System board of directors held its quarterly meeting June 16, hearing reports from the Investment, Audit, Election and Retirement committees.

Investment Committee

Wilshire Associates, the system’s investment consultant, reviewed investment performance for the period ended March 31, 2016. Performance for the quarter was positive, 1.4 percent compared to the system policy benchmark of 2.1 percent. For the 12-month period ended March 31, 2016, the system was down -3.2 percent.

System assets, fiscal year-to-date, have declined approximately $12 million with benefit payments of approximately $344 million. The system also received a TVA contribution of $137.5 million at the end of March which represents one half of TVA’s FY 16 contribution. The system’s annualized returns over the past three-, five- and 10-year periods have been 4.4 percent, 5.7 percent and 4.5 percent, respectively.

The board reviewed the results of a fixed income structural analysis which resulted in changing the investment benchmarks of two fixed income managers to higher quality guidelines. The board approved new ranges for the public real asset class. The board also approved private real estate follow on investment to Franklin Templeton and the sales of real estate properties in a private real estate fund.

Other topics discussed during the Investment Committee meeting:

  • 401(k) Plan review 

  • Capital market assumptions review 

  • Securities lending 

  • Master Trustee request for proposal 

  • Funded status review 

  • Asset transfers 

  • Due diligence meetings with current and potential investment managers 

  • Investment manager compliance 


Audit Committee

The board approved an engagement letter with Crowe Horwath, the system’s external auditor, to provide FY 2016 financial statement audits for the defined benefit plan and the 401(k) Plan.

The board received an update from its outside counsel, Bradley Arant Boult Cummings LLP, on the current lawsuit against TVA and TVARS.
Retirement Committee

The board accepted the September 30, 2015, Actuarial Valuation of the Variable Annuity Plan performed by Mercer. This valuation is performed annually to review plan experience and recommend any necessary adjustments to the outstanding units in the Variable Annuity Plan. The Retirement Committee also approved Aon Hewitt to perform design changes to the Cash Balance recordkeeping system.

Election Committee

As covered previously in TVA Today, the Retirement System will accept nominations through Friday, July 15, for this year’s election to the TVARS board of directors. The three –year term runs from Nov. 1, 2016, through Oct. 31, 2019. Any active TVARS member is eligible to run for election.
The board approved a one-year contract with Everyone Counts to conduct this year’s election for the director position.

This change is due to the business closing of the previous vendor, VR Election Services.

Questions

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

Anyone with questions can contact Retirement Management by e-mail at retsvcs@tva.gov or by phone at 865-632-2672, 800-824-3870 (toll-free) or 865-632- 7576 (for the hearing-impaired).

 

 

 

 

 

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