TVA hopes a soaring stock market will bail out its underfunded pension fund. The market collapse of 2008 resulted in a $2 billion loss to the pension fund. It now stands at $7 billion rather than the $11 billion it needs to be fully funded.
Last year the agency budgeted $500 million for the pension fund but announced later that due to gains in pension fund investments, it would not make a contribution to the pension fund. The agency budgeted another $500 million this year, according to SEC filings, but will likely wait to see if returns are great enough to use the money elsewhere.
TVA retirees want the $1 billion over two years put into the pension fund. A group of retirees have also filed a class-action lawsuit over some recent years when the fund skipped cost-of-living adjustments. The suit had been in remediation, but a retiree newsletter says the suit has been reinstated.