After 1996 Cash Balance, waived pay credits
For employees who first became TVARS members on or after 1/1/1996 and elected to waive pay credits as of 10/1/2018.
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|
|Stopped as of 10/1/2018||
2023 Interest rate = 6.25%
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 as of 10/1/2018, 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.
401(k) Savings and Deferral Plan
TVA offers you an additional incentive to save by providing a 401(k) Plan that includes matching contributions and an automatic non-elective contribution. Read more at Fidelity
|401(k) Plan Matching||401(k) Plan Automatic
|One dollar for each dollar contributed, up to 6%||6% of eligible compensation|
Fixed and Variable Funds
You are no longer eligible to contribute to these funds but any balance in these funds will continue to receive interest. You may transfer these funds to the 401(k) Plan anytime during employment. Upon termination, you are not eligible to receive a monthly benefit from these funds. After 60 days, the Fixed Fund will cease to accrue additional interest. Your options with your funds are to withdraw your total balance or roll over your balance to an IRA or another qualified retirement plan. 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