Tennessee Valley Authority, Knoxville, plans to contribute $300 million to the TVA Retirement System in the fiscal year ending Sept. 30, 2022, it disclosed Monday in its 10-K filing with the SEC.
TVA contributed $306 million to its closed defined benefit plan in the fiscal year ended Sept. 30, according to the filing.
Also in the filing, the authority disclosed it changed the asset allocation of the plan in August in order to "reduce risk and volatility" in the TVARS portfolio.
As of Sept. 30, the pension fund's target allocation was 38% defensive growth assets, 25% inflation-sensitive assets, 20% defensive assets and 17% growth assets.
The previous target allocation as shown in the prior year's 10-K filing was 32% global public equities, 20% each safety-oriented fixed income and opportunistic fixed income, 10% each public real assets and private real assets, and 8% private equity.
The new 10-K filing said the actual allocation as of Sept. 30 was 35% defensive growth assets (up from 20% a year earlier), 27% inflation-sensitive assets (up from 18%), 20% defensive assets (up from 18%) and 18% growth assets (down from 44%).
The new 10-K filing disclosed that the TVARS board decreased the expected return on plan assets assumption to 5.75% from 6.75% based on "external actuarial advice, the current outlook on capital markets, the asset allocation policy, and the anticipated investment expenses and impact of active management."
As of Sept. 30, pension fund assets totaled $9.11 billion, while projected benefit obligations totaled $13.35 billion, for a funding ratio of 68.2%, up from 58.2% a year earlier.
The plan's discount rate as of Sept. 30 was 2.9%, up from 2.75% the year before.
