Benefit Plans

TVA sponsors a qualified defined benefit plan ("pension plan") that covers most of its full-time employees hired before July 1, 2014, a qualified defined contribution plan ("401(k) 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 post-employment benefits, such as workers' compensation, and the SERP. The pension plan and the 401(k) plan are administered by a separate legal entity, the TVA Retirement System ("TVARS"), which is governed by its own board of directors.

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, 2019 and 2018, were as follows:



Components of TVA's Benefit Plans⁽¹⁾
	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
	2019			2018			2019			2018			2019			2018			2019			2018
Service cost	$	10		$	13		$	3		$	3		$	22		$	27		$	6		$	7
Interest cost	126			119			5			4			249			237			9			9
Expected return on plan assets	(120		)	(119		)	—			—			(239		)	(239		)	—			—
Amortization of prior service credit	(24		)	(24		)	(6		)	(5		)	(49		)	(49		)	(12		)	(11		)
Recognized net actuarial loss	86			101			1			2			168			204			2			4
Total net periodic benefit cost as actuarially determined	78			90			3			4			151			180			5			9
Amount expensed (capitalized) due to actions of regulator	(2		)	(13		)	—			—			1			(27		)	—			—
Total net periodic benefit cost	$	76		$	77		$	3		$	4		$	152		$	153		$	5		$	9

Note

(1) The components of net benefit cost other than the service cost component are included in Other net periodic benefit cost in the Consolidated Statements of Operations.

TVA's minimum required pension plan contribution for 2019 is $300 million. TVA contributes $25 million per month to TVARS and as of March 31, 2019, had contributed $150 million. The remaining $150 million will be contributed by September 30, 2019. For the six months ended March 31, 2019, TVA also contributed $44 million to the 401(k) plan and $20 million (net of $2 million in rebates) to the other post-retirement plans. TVA has contributed $5 million to the SERP for the six months ended March 31, 2019, and expects to contribute an additional $1 million in 2019.