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Benefit Plans Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Obligations and Funded Status

The changes in plan obligations, assets, and funded status for the years ended September 30, 2021 and 2020, were as follows:

Obligations and Funded Status For the years ended September 30
911,000,000			Pension Benefits												Other Post-Retirement Benefits
			2021						2020						2021						2020
Change in benefit obligation
Benefit obligation at beginning of year			$	13,675					$	13,312					$	544					$	499
Service cost			57						55						18						16
Interest cost			368						415						16						16
Plan participants' contributions			5						6						—						—
Collections(1)			—						—						17						20
Actuarial (gain) loss			(25)						614						(53)						39
Plan change			—						2						—						—
Net transfers (to) from variable fund/401(k) plan			2						2						—						—
Expenses paid			(6)						(5)						—						—
Benefits paid			(728)						(726)						(44)						(46)
Benefit obligation at end of year			13,348						13,675						498						544
Change in plan assets
Fair value of net plan assets at beginning of year			7,959						7,980						—						—
Actual return on plan assets			1,572						397						—						—
Plan participants' contributions			5						6						—						—
Collections(1)			—						—						17						20
Net transfers (to) from variable fund/401(k) plan			2						2						—						—
Employer contributions			306						305						27						26
Expenses paid			(6)						(5)						—						—
Benefits paid			(728)						(726)						(44)						(46)
Fair value of net plan assets at end of year			9,110						7,959						—						—
Funded status			$	(4,238)					$	(5,716)					$	(498)					$	(544)

Note

(1) Collections include retiree contributions as well as provider discounts and rebates.

Amounts Recognized on TVA's Consolidated Balance Sheets

Amounts related to these benefit plans recognized on TVA's Consolidated Balance Sheets consist of regulatory assets and liabilities that have not been recognized as components of net periodic benefit cost at September 30, 2021 and 2020, and the funded status of TVA's benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations:

Amounts Recognized on TVA's Consolidated Balance Sheets At September 30
			Pension Benefits												Other Post-Retirement Benefits
			2021						2020						2021						2020
Regulatory assets (liabilities)			$	3,636					$	5,115					$	32					$	78
Accounts payable and accrued liabilities			(7)						(5)						(24)						(28)
Pension and post-retirement benefit obligations(1)			(4,231)						(5,711)						(474)						(516)

Note

(1) The table above excludes $340 million and $390 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2021 and 2020, respectively.

Post-Retirement Benefit Costs Deferred as Regulatory Assets

Unrecognized amounts included in regulatory assets or liabilities yet to be recognized as components of accrued benefit cost at September 30, 2021 and 2020, consisted of the following:

Post-Retirement Benefit Costs Deferred as Regulatory Assets (Liabilities) At September 30
			Pension Benefits												Other Post-Retirement Benefits
			2021						2020						2021						2020
Unrecognized prior service credit			$	(517)					$	(615)					$	(93)					$	(112)
Unrecognized net loss			4,062						5,620						125						190
Amount capitalized due to actions of regulator			91						110						—						—
Total regulatory assets (liabilities)			$	3,636					$	5,115					$	32					$	78

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets

accumulated postretirement benefit obligation ("APBO") has been disclosed in the Obligations and Funded Status table above. The following table provides the pension plan accumulated benefit obligation ("ABO") in excess of plan assets. The other post-retirement plans are unfunded or have no plan assets.

Accumulated Benefit Obligations in Excess of Plan Assets At September 30
			2021						2020
Accumulated benefit obligation			$	13,299					$	13,613
Fair value of net plan assets			9,110						7,959

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the years ended September 30, 2021, 2020, and 2019 were as follows:

Components of Net Periodic Benefit Cost For the years ended September 30
			Pension Benefits																		Other Post-Retirement Benefits
			2021						2020						2019						2021						2020						2019
Service cost			$	57					$	55					$	44					$	18					$	16					$	11
Interest cost			368						415						499						16						16						18
Expected return on plan assets			(493)						(488)						(477)						—						—						—
Amortization of prior service credit			(97)						(97)						(99)						(18)						(24)						(24)
Recognized net actuarial loss			452						436						336						11						10						4
Total net periodic benefit cost as actuarially determined			287						321						303						27						18						9
Amount expensed (capitalized) due to actions of regulator			19						(15)						1						—						—						—
Net periodic benefit cost			$	306					$	306					$	304					$	27					$	18					$	9

Actuarial Assumptions

Actuarial Assumptions Utilized to Determine Benefit Obligations at September 30
			Pension Benefits												Other Post-Retirement Benefits
			2021						2020						2021						2020
Discount rate			2.90%						2.75%						3.05%						3.05%
Rate of compensation increase			3.37%						3.43%						N/A						N/A
Weighted average interest crediting rate			5.15%						5.15%						N/A						N/A
Cost of living adjustment (COLA)(1)			2.00%						2.00%						2.00%						2.00%
Pre-Medicare eligible per capita claim costs
Current health care cost trend rate			N/A						N/A						6.25%						6.50%
Ultimate health care cost trend rate			N/A						N/A						5.00%						5.00%
Year ultimate trend rate is reached			N/A						N/A						2027						2027
Pre-Medicare eligible per capita contributions(2)
Current health care cost trend rate			N/A						N/A						8.51%						11.93%
Ultimate health care cost trend rate			N/A						N/A						5.00%						5.00%
Year ultimate trend rate is reached			N/A						N/A						2027						2027
Post-Medicare eligible
Current health care cost trend rate			N/A						N/A						—%						—%
Ultimate health care cost trend rate			N/A						N/A						4.00%						4.00%
Year ultimate trend rate is reached			N/A						N/A						2024						2024

Notes

(1) The COLA assumption is the ultimate long-term rate. The calendar year rate for 2022 is assumed to be 3.15 percent, and for years thereafter the ultimate is used.

(2) In 2021 and 2020, due to the COVID-19 pandemic and premium experience, TVA reset the pre-Medicare eligible per capita contributions. The 2021 current trend rate remains at 8.51 percent for years 2022 through 2024, is 5.50 percent in 2025, and reaches the ultimate rate of 5.00 percent in 2027.

Actuarial Assumptions Utilized to Determine Net Periodic Benefit Cost for the Years Ended September 30(1)
			Pension Benefits																		Other Post-Retirement Benefits
			2021						2020						2019						2021						2020						2019
Discount rate			2.75%						3.20%						4.35%						3.05%						3.30%						4.40%
Expected return on plan assets(2)			6.75%						6.75%						6.75%						N/A						N/A						N/A
Weighted average interest crediting rate			5.15%						5.15%						5.16%						N/A						N/A						N/A
Cost of living adjustment (COLA)(3)			2.00%						2.00%						2.00%						2.00%						2.00%						2.00%
Rate of compensation increase			3.37%						3.43%						3.50%						N/A						N/A						N/A
Pre-Medicare eligible per capita claims costs
Current health care cost trend rate			N/A						N/A						N/A						6.50%						6.75%						6.25%
Ultimate health care cost trend rate			N/A						N/A						N/A						5.00%						5.00%						5.00%
Year ultimate trend rate is reached			N/A						N/A						N/A						2027						2027						2024
Pre-Medicare eligible per capita contributions
Current health care cost trend rate(4)			N/A						N/A						N/A						11.93%						6.75%						6.25%
Ultimate health care cost trend rate			N/A						N/A						N/A						5.00%						5.00%						5.00%
Year ultimate trend rate is reached			N/A						N/A						N/A						2027						2027						2024
Post-Medicare eligible
Current health care cost trend rate			N/A						N/A						N/A						—%						—%						—%
Ultimate health care cost trend rate			N/A						N/A						N/A						4.00%						4.00%						4.00%
Year ultimate trend rate is reached			N/A						N/A						N/A						2024						2023						2021

Notes

(1) The actuarial assumptions used to determine the benefit obligations at September 30 of each year are subsequently used to determine net periodic benefit cost

for the following year except the rate of compensation increase assumption.

(2) The actual return on assets for 2021, 2020, and 2019 were 20.30 percent, 5.11 percent, and 4.99 percent, respectively.

(3) The COLA assumption is the ultimate rate. The actual calendar year rate is used in determining the expense, and for years thereafter the ultimate rate is used.

(4) Due to the COVID-19 pandemic and premium experience, TVA temporarily reset the pre-Medicare eligible per capita contributions current trend rate to measure 2021 other post-retirement cost.

Sensitivity to Certain Changes in Pension Assumptions

The following chart reflects the sensitivity of pension cost to changes in certain actuarial assumptions:

Sensitivity to Certain Changes in Pension Assumptions At September 30, 2021
Actuarial Assumption						Change in Assumption						Impact on 2021 Pension Cost						Impact on 2021 Projected Benefit Obligation
Discount rate						(0.25)		%				$	16					$	396
Rate of return on plan assets						(0.25)		%				18						N/A
Cost of living adjustments						0.25		%				29						258

Asset Holdings and Fair Value Measurements

At September 30, 2021 and 2020, the asset holdings of TVARS included the following:

Asset Holdings of TVARS At September 30
												Plan Assets at September 30
Asset Category						Target Allocation						2021						2020
Growth assets						17		%				18		%				44		%
Defensive growth assets						38		%				35		%				20		%
Defensive assets						20		%				20		%				18		%
Inflation-sensitive assets						25		%				27		%				18		%
Total						100		%				100		%				100		%

Fair Value Measurements

    The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2021:

TVA Retirement System At September 30, 2021
			Total(1)(2)						Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Equity securities			$	992					$	990					$	—					$	2
Preferred securities			9						2						6						1
Debt securities
Corporate debt securities			1,360						—						1,359						1
Residential mortgage-backed securities			275						—						267						8
Debt securities issued by U.S. Treasury			741						741						—						—
Debt securities issued by foreign governments			204						—						200						4
Asset-backed securities			151						—						110						41
Debt securities issued by state/local governments			28						—						28						—
Commercial mortgage-backed securities			168						—						151						17
Commingled funds measured at net asset value(3)
Equity			619						—						—						—
Debt			881						—						—						—
Blended			105						—						—						—
Institutional mutual funds			841						841						—						—
Cash equivalents and other short-term investments			710						323						387						—
Private credit measured at net asset value(3)			324						—						—						—
Private equity measured at net asset value(3)			1,333						—						—						—
Private real assets measured at net asset value(3)			760						—						—						—
Securities lending collateral			240						—						240						—
Derivatives
Futures			1						1						—						—
Swaps			6						—						6						—
Foreign currency forward receivable			1						—						1						—
Total assets			$	9,749					$	2,898					$	2,755					$	74
Liabilities
Derivatives
Futures			$	4					$	4					$	—					$	—
Foreign currency forward payable			1						—						1						—
Swaps			23						—						23						—
Securities sold under agreements to repurchase			108						—						108						—
Total liabilities			$	136					$	4					$	132					$	—

Notes

(1)  Excludes approximately $263 million in net payables associated with security purchases and sales and various other payables.

(2)  Excludes a $240 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs.

(3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

    The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2020:

TVA Retirement System At September 30, 2020
			Total(1)(2)						Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Equity securities			$	1,624					$	1,621					$	—					$	3
Preferred securities			11						—						11						—
Debt securities
Corporate debt securities			1,421						—						1,418						3
Residential mortgage-backed securities			317						—						314						3
Debt securities issued by U.S. Treasury			701						701						—						—
Debt securities issued by foreign governments			231						—						179						52
Asset-backed securities			116						—						88						28
Debt securities issued by state/local governments			23						—						23						—
Commercial mortgage-backed securities			91						—						86						5
Commingled funds measured at net asset value(3)
Equity			931						—						—						—
Debt			203						—						—						—
Blended			102						—						—						—
Institutional mutual funds			277						277						—						—
Cash equivalents and other short-term investments			338						77						261						—
Private credit measured at net asset value(3)			166						—						—						—
Private equity measured at net asset value(3)			1,003						—						—						—
Private real assets measured at net asset value(3)			629						—						—						—
Securities lending collateral			167						—						167						—
Derivatives
Futures			3						3						—						—
Swaps			10						—						10						—
Options			2						—						2						—
Foreign currency forward receivable			2						—						2						—
Total assets			$	8,368					$	2,679					$	2,561					$	94
Liabilities
Derivatives
Futures			$	1					$	1					$	—					$	—
Foreign currency forward payable			3						—						3						—
Swaps			6						—						6						—
Options			2						—						2						—
Securities sold under agreements to repurchase			123						—						123						—
Total liabilities			$	135					$	1					$	134					$	—

Notes

(1)  Excludes approximately $107 million in net payables associated with security purchases and sales and various other payables.

(2)  Excludes a $167 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs.

(3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

Fair Value Measurements Using Significant Unobservable Inputs

The following table provides a reconciliation of beginning and ending balances of pension plan assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Fair Value Measurements Using Significant Unobservable Inputs
			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at October 1, 2019			$	42
Net realized/unrealized gains (losses)			46
Purchases, sales, issuances, and settlements (net)			11
Transfers in and/or out of Level 3			(5)
Balance at September 30, 2020			94
Net realized/unrealized gains (losses)			(48)
Purchases, sales, issuances, and settlements (net)			32
Transfers in and/or out of Level 3			(4)
Balance at September 30, 2021			$	74

Estimated Future Benefit Payments

Cash Flows

Estimated Future Benefit Payments.  The following table sets forth the estimated future benefit payments under the benefit plans.

Estimated Future Benefits Payments At September 30, 2021
			Pension Benefits(1)						Other Post-Retirement Benefits
2022			$	790					$	24
2023			786						23
2024			782						21
2025			781						20
2026			776						20
2027 - 2031			3,772						107

Note

(1) Participants are assumed to receive the Fixed Fund in a lump sum in lieu of available annuity options allowed for certain grandfathered participants resulting in higher estimated pension benefits payments.

Amounts recognized on Consolidated Balance Sheets

Amounts Recognized on TVA's Consolidated Balance Sheets At September 30
			2021						2020
Accounts payable and accrued liabilities(1)			$	—					$	—
Post-retirement and post-employment benefit obligations			340						390

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