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, March 15.

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

Investment Committee

Wilshire Associates, the System’s investment consultant, reviewed investment performance for periods ended Dec. 31, 2012. Performance for the quarter was positive with the System earning 2.47 percent on its investments. For the 12-month period ended Dec. 31, the System earned 14.36 percent and ranked in the 7th percentile among the 209 plans in Wilshire’s Total Fund Universe. Earnings for the System over the last year totaled more than $900 million. The System’s annualized returns over the last 3, 10 and 20 years have been 9.32 percent, 7.72 percent and 8.07 percent respectively. This performance ranks in the 9th, 20th and 19th percentile among other institutional funds followed by Wilshire.

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

  • Master Limited Partnership investments
  • Trade cost analysis
  • Private equity agreement amendment
  • Investment managers’ compliance with their guidelines
  • Due diligence meetings with current and potential investment managers
  • Asset transfers during the quarter
  • 401(k) Plan fund performance
  • Risk allocation review
  • Funded status review

Audit Committee

E.H. Johnson & Company, P.C., the System’s compliance auditor, provided the board with its Report on Agreed-upon Procedures for 2012. These procedures are performed to assist the board in evaluating internal accounting controls and to assist the external auditors in the detailed testing for their audits of the System and the 401(k) Plan. There were no exceptions found during this internal accounting control audit and the board voted to accept the report.

The board amended the Ethics and Code of Conduct policy to add language where in the event a director holds the position of TVA’s designated agency ethics official (DAEO), the deputy DAEO in TVA’s Office of the General Counsel will serve in the capacity of the DAEO for purposes of this policy.

The board met with representatives from Crowe Horwath, LLP, external auditor for TVARS, to discuss the fiscal year 2012 audit and annual report, which will be released soon.

The board also received a legal update on the lawsuit from Bradley Arant Boult Cummings, TVARS outside legal counsel.

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

  • TVARS board self evaluation for 2012
  • Executive secretary evaluation for 2012
  • Fiduciary Liability Insurance
  • TVARS board policy regarding open meetings

Election Committee

The Election Committee had no items on the agenda.

Retirement Committee

The board accepted the Sept. 30, 2012 Actuarial Valuation Report, performed by Mercer Human Resource Consulting, the System’s actuary. This report is the annual valuation of the System’s liabilities and is disclosed as part of the footnotes to the audited financial statements in the annual report.

The board met with representatives from Mercer Human Resource Consulting, the System’s current actuary to discuss long-term funding study assumptions and the upcoming experience study performed every five years.

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

  • Request for Proposal (RFP) update for actuarial services
  • RFP update for defined contribution plan consultant
  • Fidelity Investment consultants dedicated to TVA


The TVARS board is committed to providing accurate and timely information to employees and retirees.

Anyone with questions can contact Retirement Management by email at retsvcs@tva.gov or by phone at 865-632-2672 or 800-824-3870 (toll-free).






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