Before 1996 Cash Balance
For employees who first became TVARS members before 1/1/1996 and elected to participate in the Cash Balance Benefit Structure
Your Retirement Benefits at a Glance
Cash Balance Account
The value of your Cash Balance Account is the sum of your pay credits plus interest credits. At retirement, this account balance can either be converted to a monthly pension benefit or a lump-sum cashout.
| Pay Credits | Interest Credits |
|---|---|
| 6% of eligible compensation |
2024 Interest rate = 7.69% CPI+3% |
Supplemental Benefit
This benefit is provided to eligible retirees and eligible surviving spouses receiving a monthly pension payment. This benefit may be used to pay for retiree medical insurance and is considered a taxable portion of your monthly retirement income. To be eligible, terminating employees must be:
Actual age 55 at termination with at least 10 years of TVARS service, or
Actual age 50 at termination with at least 10 years of TVARS service if terminated due to an involuntary reduction in force (benefit begins at actual age 55)
| Calculation of Supplemental Benefit |
|---|
| $11.5757 per month for each full year of TVARS service at retirement, plus an additional $94.20 per month. |
*Eligible retirees who are age 60 or older are eligible for different amounts depending on the cost-of-living adjustments since turning age 60. To see your monthly supplemental benefit and how it is calculated, please log on to PLUS and view your personalized retirement benefit estimates under the Benefits section.
Read more about the supplemental benefit.
401(k) Savings and Deferral Plan
TVA offers you an additional incentive to save by providing a 401(k) Plan that includes matching contributions. Read more at Fidelity
| 401(k) Plan Matching |
|---|
| 75 cents for each dollar contributed, up to 6% |
Fixed and Variable Funds
These funds consist of your contributions (and the earnings on those contributions) to one or both of two after-tax investment options–the Fixed Fund and the Variable Fund. You are eligible to contribute to these funds unless you have transferred fund balances to the 401(k) Plan on or after 5/1/2005, in which case you may never again make contributions to these funds. At retirement, you may elect a lifetime monthly benefit from these funds or you may elect to transfer these funds out of TVARS. Read more at Fidelity
Cost-of-Living Adjustments After Retirement
Cost-of-living adjustments (COLA) may be available on the base pension portion of the monthly pension benefit. Any adjustment is normally granted in January and is equal to the change in Consumer Price Index (CPI) minus .25% up to a maximum of 6%. Read more at COLA FAQ