For employees in the Original Benefit Structure
Your Retirement Benefits at a Glance
TVA-Funded Pension Benefit
The Original Benefit Structure provides a TVA-funded pension benefit. The pension benefit is calculated by the following formula:
Hi-3 X Creditable Service X Pension Factor = Maximum Monthly Pension
You are considered vested when you have five years of creditable service. Generally, creditable service is the length of time spent as a member of the Retirement System. However, it also includes credit for any unused sick leave and forfeited annual leave after January 1, 1980.
This benefit is provided to eligible retirees and eligible surviving spouses and is intended to help with the cost of medical insurance. The amount of this vested benefit is based upon the length of time spent as a member in the TVA Retirement System. Read more about the supplemental benefit.
401(k) Savings and Deferral Plan
TVA contributes 25 cents to your account for each dollar you contribute to the plan. The maximum matching contribution from TVA is 1.5% of your eligible compensation. You must contribute a minimum of 6% to be eligible to receive the full employer match. You are immediately vested in any contributions you make and any earnings on your contributions. Additionally, you are vested in matching contributions from TVA and any earnings after 3 years of TVA service. Read more at Fidelity
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. Employees are eligible to contribute unless they have transferred fund balances to the 401(k) Plan on or after 5/1/2005, in which case they 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