A $500 million pension fund could be subject to hefty tax bills as a result of the state’s new law, which requires pension funds to file a Form 1099 each year.
The pension fund, the Tennessee Valley Authority, is a state-owned pension fund that provides health care and other benefits to state employees and retirees.
Under the new law passed in June, the pension fund will now have to file quarterly reports for the first time, as well as for any subsequent years.
If the pension funds fails to file timely, the state could levy a tax on the funds and other public agencies.
The tax is calculated based on the amount of pension funds assets that it holds and the total value of the assets of the public agencies that administer the funds.
The Tennessee Valley, which manages about $50 billion in assets, has $10.8 billion in unfunded liabilities.
The state is trying to recoup some of those liabilities with the tax increase, which will be a part of a $2.4 billion tax package passed by the Tennessee General Assembly last month.
The state has a $1.5 billion pension fund with $2 billion in unclaimed assets.
It is estimated to have $3.1 billion in liabilities.
The new law provides that the pension trustees are required to file Form 1039.
The form does not require the trustees to provide any information on their assets.
The trustees also must provide the amount paid into the fund for the years preceding the years of retirement and for any future years.
The law does not apply to any pension fund assets that are held in a “designated trust,” which is a trust that is not managed by the state.
The tax law allows the trustees of Tennessee Valley to claim up to $500 for each unclaimed asset.
The amount of the tax will be determined by the total amount of unfundable liabilities, the total liabilities of the Tennessee Department of Treasury and the Tennessee Treasurer’s Office.
The bill also requires the Tennessee Treasury Department to notify the Tennessee Public Service Commission of the unclaimed tax, and the commission will report the unfunding liability to the Tennessee Tax Commission.
The Tennessee Tax commission will then assess a tax of $5 per $100,000 of assets in the pension plan.
If a pension fund fails to report its unfunds and liabilities within 15 days of the end of each fiscal year, the trustee will have to pay the tax on a quarterly basis, unless the trustees are able to obtain a waiver.
The waiver would require a written request from the trustees, and they must provide a statement of why they did not file a quarterly report.
Tennessee General Assemblywoman Susan Williams, R-Tullahoma, introduced the bill in response to the state tax increase.
She said that the legislation is meant to help Tennessee Valley get its money back.