TVA’s retirement fund, which was judged four years ago to have a funding shortfall of more than $5.3 billion, has boosted its financial standing and should pay all retirees their promised benefits, Tennessee Valley Authority officials say.
In a presentation to the TVA board last week, Chief Financial Officer John Thomas said the financial status of TVA’s pension fund has improved as the utility switched new hires to another retirement plan while continuing to contribute to the defined benefit plan to shore up its financial standing.
“Our plan is that by 2036 it will be 100% funded,” Thomas told the board.
TVA Chair Bill Kilbride said there are adequate reserves to pay all existing retirees and the accounting shortfall is based on deficiencies in meeting financial commitments to retirees in the future.
