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 six months ended March 31, 2016, and 2015, were as follows:



Components of TVA’s Benefit Plans
	For the Three Months Ended March 31												For the Six Months Ended March 31
	Pension Benefits						Other Post-Retirement Benefits						Pension Benefits						Other Post-Retirement Benefits
	2016			2015			2016			2015			2016			2015			2016			2015
Service cost	$	34		$	31		$	4		$	3		$	66		$	65		$	8		$	8
Interest cost	142			137			8			7			282			270			15			15
Expected return on plan assets	(112		)	(109		)	—			—			(223		)	(218		)	—			—
Amortization of prior service credit	(5		)	(6		)	(2		)	(1		)	(11		)	(11		)	(3		)	(3		)
Recognized net actuarial loss	82			81			1			2			155			150			3			4
Total net periodic benefit cost as actuarially determined	141			134			11			11			269			256			23			24
Amount capitalized due to actions of regulator	(71		)	(63		)	—			—			(129		)	(114		)	—			—
Total net periodic benefit cost	$	70		$	71		$	11		$	11		$	140		$	142		$	23		$	24

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 contributed $275 million to the Plan in 2015 and expects to contribute the same amount in 2016. As of March 31, 2016, TVA had contributed $138 million to the Plan and expects to contribute the remaining $137 million by September 30, 2016. TVA does not separately set aside assets to fund other benefit costs, but rather funds such costs on an as-paid basis. For the six months ended March 31, 2016, TVA provided approximately $21 million, net of rebates and subsidies, to other post-retirement benefit plans and approximately $6 million to the SERP. For the six months ended March 31, 2015, TVA provided approximately $21 million, net of rebates and subsidies, to other post-retirement benefit plans and approximately $7 million to the SERP. TVA includes its cash contributions to the pension plan in the rate-making formula; accordingly, TVA recognizes pension costs as regulatory assets to the extent that the amount calculated under GAAP as pension expense differs from the amount TVA contributes to the pension plan.