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Report on TVARS Board Quarterly Meeting

The board of directors of the TVA Retirement System (referred to below as either TVARS or System) held its regular quarterly meeting Friday, June 28. 

Included in this article are summaries of what was discussed and/or voted on during this meeting following reports by the Investment, Audit, Election and Retirement Committees of the TVARS board.  Unless otherwise noted, all votes were unanimous.

Each TVARS board director serves on one or more of these four committees.  Committee appointments are made on an annual basis.

On June 28, Bradley Arant Boult Cummings, outside legal counsel representing the System in the current lawsuit against TVA and the System, discussed with the board issues regarding the lawsuit.  An update regarding the lawsuit is available on the TVARS website.

Investment Committee

Wilshire Associates, the System’s investment consultant, reviewed investment performance for periods ended March 31, 2013.  Performance for the quarter was positive with the System earning 4.58 percent on its investments.  For the 12-month period ended March 31, the System earned 11.42 percent and ranked in the 8th percentile among the 473 plans in Wilshire’s Total Fund Universe.  The System’s annualized returns over the last 3, 10 and 20 years have been 9.81 percent, 8.31 percent and 8.08 percent respectively. This performance ranks in the 12th, 19th and 25th percentile among other institutional funds followed by Wilshire. 

Other topics discussed during the Investment Committee meeting included the following:

  • 401(k) Plan fund performance and fees
  • Dynamic risk rebalancing
  • Risk allocation review
  • Funded status review

Audit Committee

The board approved an engagement letter for Crowe Horwath, the System’s external auditor, to provide FY 2013 financial statement audits for the defined benefit plan and the 401(k) Plan. 

Election Committee

The System will be holding an employee election for a director position.  The schedule for this year’s election was approved by the board and was communicated to employees in TVA Today the week of June 17.  The board approved a three-year engagement letter for VR Election Services to conduct the annual election for the director position. 

Retirement Committee

The board met with representatives from Mercer Human Resource Consulting, the System’s current actuary, to discuss preliminary results of the long-term funding study that will be used as the basis for making a recommended contribution rate to TVA.

During the Retirement Committee meeting, presentations were made for actuarial services and for defined contribution plan consulting services.  Following these presentations, the board voted to retain Mercer Human Resource Consulting, the System’s current actuary, to continue to provide ongoing actuarial services.  Additionally, the board voted to hire Hewitt EnnisKnupp to provide defined contribution plan consulting services.

The TVARS board also approved changes to the TVARS rules and 401(k) Plan provisions to allow credit for certain TVA lump-sum payments made to employees in lieu of base-wage or salary increases for FY 2013 for the purposes of calculating pension benefits under the rules and TVA matching contributions under the 401(k) Plan.

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, or 800-824-3870 (toll-free).

 

 

 

 

 

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