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What to Expect After Retirement

Retirement Payments

1st check — 6-8 weeks

  • Partial month
  • Mailed to your home address as a paper check
  • No deductions other than Federal Employees Group Life Insurance (FEGLI)

2nd payment — End of month after 1st check

  • Full month
  • Direct-deposited
  • May include 2-3 deductions for medical insurance, since you pay one month in advance for insurance

3rd payment — End of month

  • Normal deductions
  • Healthcare credit applied, if eligible*

Remainder — Last business day of month

  • Dental insurance premiums will begin with the 4th payment, if applicable

*Any retroactive Healthcare Credit may either be applied to your medical insurance deduction or be issued as a refund check. For more information, contact the TVA Employee Benefits at (888) 275-8094.

Other Payments

Last paycheck — Following payday Monday

Your last employee paycheck for straight time should be paid on the “payday” Monday following the last pay period that you worked in. Any pay due applicable to other types of pay (such as overtime) is paid in arrears and would be paid the next available pay date.

Annual leave — 2nd or 3rd payday after retirement

If you have an annual leave or a restored leave balance when you retire, it will be paid in a lump sum after the last active paycheck. Standard Social Security, Medicare, and income taxes are deducted from this payment. Federal income taxes are assessed at the IRS Supplemental rate (currently 25%). Medical, dental, and life insurance may also be deducted from this payment. Depending on the timing of your termination date within your last bi-weekly pay cycle, this payment is made on either the second or third regular pay date after your termination.

Severance pay — 2nd or 3rd payday after retirement

If eligible, severance pay is also paid after the last active paycheck. Social Security, Medicare, and income taxes are deducted from this payment. Federal income taxes are assessed at the IRS Supplemental rate (currently25%). Severance is paid in the same time frame as lump sum Annual Leave.

For more information, please call Accounting Services at (865) 632-2231

Also Important

  • State income tax is not withheld from your TVA retirement benefit.
  • Fidelity Investments can be contacted at (800) 354-7121 to arrange any distribution from the 401(k) Plan. This does not have to be arranged before you retire.
  • In order to receive a Social Security benefit, you must sign up 3 months before the month you expect to receive it. You can make an appointment by contacting Social Security at (800) 772-1213.

 

 

 

What to Expect After Retirement PDF

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