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TVA shores up retirement fund, pledges full plan funding by 2036

Staff photo by Olivia Ross / TVAs board of directors listens to speakers during a public listening session last week at the Chattanooga Convention Center. The TVA board was recently briefed on the status of the TVA Retirement System, which is still judged to be underfunded but in a stronger position than in the past.
Staff photo by Olivia Ross / TVAs board of directors listens to speakers during a public listening session last week at the Chattanooga Convention Center. The TVA board was recently briefed on the status of the TVA Retirement System, which is still judged to be underfunded but in a stronger position than in the past.

By Dave Flessner 4 min read


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.