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FY 2013 Lump Sums in lieu of increase Not Included


The Retirement board has not extended the inclusion of lump-sum payments in lieu of base wage or salary increases in pension and 401K matching calculations for fiscal year 2013 (beginning October 1, 2012).  Prior to this year, they had been extended each year since 1999.  Winning Performance lump-sum payments are included and do not have to be extended each year.  

From page 6 of the Rules and Regulations of the TVA Retirement System:

*Provided, however, that earnable compensation shall include...lump-sum payments of up to 4 percent of regular salary or wages for Fiscal Years 1999 through 2012, which TVA informs the System were made available, in lieu of a base wage or salary increase, across a represented or non-represented group of employees as agreed to during annual negotiations, in the case of represented groups, or approved by TVA in connection with an annual review of management and excluded compensation. Provided further, that earnable compensation shall include...lump-sum payments of up to 6.25 percent of regular salary or wages (excluding any overtime pay adjustments), as approved by TVA, under the TVA Winning Performance Team Incentive Plan.

Beginning on page 2 of the Provisions of The Tennessee Valley Authority Savings and Deferral Retirement Plan:

...For the purpose of determining participant’s compensation under Article 9.5, compensation shall include...a lump-sum payment of up to 4 percent of regular salary or wages for Fiscal Years 1999 through 2012, which TVA informs the Retirement System were made available, in lieu of a base wage or salary increase, across a represented or non-represented group of employees as agreed to during annual negotiations, in the case of represented groups, or as approved by TVA in connection with an annual review of management and excluded compensation. For the purposes of determining participant’s compensation under Article 9.5, compensation shall include...for plan years after 2001, lump-sum payments of up to 6.25 percent of regular salary or wages (excluding any overtime pay adjustments), as approved by TVA, under the TVA Winning Performance Team Incentive Plan. 

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