Benefit Plans

TVA sponsors a qualified defined benefit pension plan (the "Plan") that covers most of its full-time employees hired before July 1, 2014, 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 eligible 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, 2015, and 2014, 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
	2015			2014			2015			2014			2015			2014			2015			2014
Service cost	$	32		$	33		$	4		$	5		$	97		$	98		$	12		$	14
Interest cost	135			139			7			8			405			418			22			24
Expected return on plan assets	(110		)	(109		)	—			—			(328		)	(326		)	—			—
Amortization of prior service credit	(5		)	(5		)	(2		)	(2		)	(16		)	(16		)	(5		)	(5		)
Recognized net actuarial loss	75			71			3			3			225			214			7			8
Total net periodic benefit cost as actuarially determined	127			129			12			14			383			388			36			41
Amount capitalized due to actions of regulator	(57		)	—			—			—			(171		)	—			—			—
Total net periodic benefit cost	$	70		$	129		$	12		$	14		$	212		$	388		$	36		$	41

TVA contributes to the Plan such amounts as are necessary on an actuarial basis to provide the Plan with assets

sufficient to meet TVA-funded benefit obligations to be paid to members. TVA expects to contribute $275 million to the Plan in 2015. As of June 30, 2015, TVA had contributed $138 million to the Plan and expects to contribute the remaining $137 million by September 30, 2015. TVA contributed $250 million to the Plan in 2014. TVA does not separately set aside assets to fund other benefit costs, but rather funds such costs on an as-paid basis. For the nine months ended June 30, 2015, TVA provided approximately $31 million, net of rebates and subsidies, to other post-retirement benefit plans and approximately $7 million to the SERP. For the nine months ended June 30, 2014, TVA provided approximately $23 million, net of rebates and subsidies, to other post-retirement benefit plans and approximately $6 million to the SERP.