I believe it is critical that the TVARS board specify in the
rules that the COLAs are "non-forfeitable" vested benefits as soon as
possible BEFORE any divestiture discussions take place. TVA has communicated for several years now
that it believes COLAs are "forfeitable," or not vested. TVA’s “understanding” could be “baked in” any
divestiture discussions if the TVARS board does not act quickly. I do not know the probability of divestiture
occurring, but I believe the TVARS board should protect the members of the
system by planning for the worst and hoping for the best.
The TVARS board is required to recommend a contribution from TVA to be made in fiscal year 2014 prior to the end of the current fiscal year. (See Section 9B on pages 51-53 of the rules here .) Since TVA sets its budget months before the end of the fiscal year, it is imperative that this recommended amount be: decided upon by the TVARS board as quickly as possible; sufficient to adequately fund TVARS; and consistent with the amounts charged to ratepayers for pension expense. All seven TVARS board members have an obligation to come together to accomplish this. (See TVARS board members here .) I sincerely hope we will be able to accomplish this without further rule changes suspending TVA contributions, or further claims that legitimate accrued benefits are not really vested and must be reduced. I hope we will be able to put an end to our failure to insure that amounts paid by TVA ratepayers for pension expense are used for their intended purpose. As a TVARS board member, I
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