Benefit Plans

TVA sponsors a qualified defined benefit pension plan that covers most of its full-time employees, a qualified defined contribution plan that covers most of its full-time employees, two unfunded post-retirement health care plans that provide for non-vested contributions toward the cost of certain retirees' medical coverage, other postemployment benefits, such as workers' compensation, and the SERP.

The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the three and nine months ended June 30, 2013, and 2012, were as follows:



Components of TVA’s Benefit Plans
	For the Three Months Ended June 30												For the Nine Months Ended June 30
	Pension Benefits						Other Post-Retirement Benefits						Pension Benefits						Other Post-retirement Benefits
	2013			2012			2013			2012			2013			2012			2013			2012
Service cost	$	38		$	34		$	6		$	5		$	115		$	103		$	18		$	14
Interest cost	117			123			8			9			351			368			23			27
Expected return on plan assets	(107		)	(109		)	—			—			(321		)	(327		)	—			—
Amortization of prior service cost	(6		)	(6		)	(2		)	(1		)	(17		)	(18		)	(5		)	(4		)
Recognized net actuarial loss	95			90			6			8			283			270			19			23
Total net periodic benefit cost recognized	$	137		$	132		$	18		$	21		$	411		$	396		$	55		$	60

During the nine months ended June 30, 2013, TVA did not make contributions to its qualified defined benefit pension plan. TVA does not separately set aside assets to fund other benefit costs, but rather funds such costs on an as-paid basis. TVA provided approximately $34 million and $31 million for other benefit costs during the nine months ended June 30, 2013, and 2012, respectively.