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TVARS Board Holds Quarterly Meeting

 

TVA Retirement System board of directors held its quarterly meeting September 18, hearing reports from the Investment and Retirement committees.

Investment Committee

Wilshire Associates, the board’s investment consultant, reviewed investment performance for the period ended June 30, 2016.  For the quarter, investments earned 3.6% compared to the system policy benchmark of 3.5%.  System assets earned 7.25%, or approximately $600 million, while benefit payments totaled approximately $515 million.  The system’s annualized returns over the past three- and five- year periods have been 6.2% and 6.7%, respectively.  Assets as of June 30 totaled approximately $6.9 billion.

The board reviewed the results of an asset liability study with Wilshire Associates.  As a result of the study, the board approved a 2.5% allocation to private credit within fixed income.

The board reviewed the System’s private equity portfolio managed by HarbourVest Partner and voted to commit an additional $300 million in 2017.

After a formal RFP process, the board approved retaining Bank of New York Mellon as the System’s master trustee and custodian.

Aon Hewitt, the board’s 401(k) Plan consultant, reviewed investment performance for the options available to participants in the 401(k) Plan lineup.  401(k) Plan assets as of June 30, 2016, totaled approximately $2 billion.  

Retirement Committee

The board met with its actuary, Mercer Human Resources Consulting (Mercer), to discuss assumptions for use in preparing the System’s upcoming September 30, 2016, annual actuarial valuation.  The board also approved an engagement letter with Mercer to provide ongoing actuarial services for FY 2017.

Questions

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

 

 

 

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