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TVARS will continue to have two benefit structures

Posted in CEO Employee Forum, Financial Services on August 7 2013

Question: I’ve heard TVA plans to eliminate the original retirement plan and force all employees into the cash balance plan. If this happens, would employees currently in the original plan have the opportunity to retire in the plan within a certain timeframe, or would they automatically be transferred to the cash balance plan with no warning?

Answer: There are no plans to eliminate the original retirement plan or force TVA employees under the original plan into the cash balance plan. The TVA Retirement System will continue to have two benefit structures within the Plan: the Original Benefit Structure and the Cash Balance Benefit Structure. The System also administers a defined contribution plan with matching contributions, the TVA Savings and Deferral Retirement Plan (401(k) Plan). There are currently no plans to “do away with” or change any of the options previously mentioned.

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