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TVA Additional Contribution to TVARS

On August 23, 2017, the TVA Board approved TVA’s $300 million contribution to the TVA Retirement System for fiscal year 2018.  The TVA Board also approved an additional one-time $500 million contribution to be made this fiscal year (fiscal year 2017).

 This additional $500 million, plus annual credited interest, can be used by TVA in lieu of contributions at any future time at TVA's discretion. (See Section 9B5 on page 64 of TVARS' rules.) It does not increase TVA's long-term funding commitment to TVARS. 

 The United States Government Accountability Office (GAO) has already pointed out in its March 2017 report that TVA's long-term funding commitment is not enough to ensure the plan’s full funding.  The GAO specifically stated that TVA should “propose, and work with the TVARS board to adopt, funding rules designed to ensure the plan’s full funding.”  (See the GAO’s recommendations for executive action on page 34 of their March 2017 report.)  Why will TVA not work with us on the TVARS Board to adopt funding rules designed to ensure the plan’s full funding?

Comments

  1. AnonymousSeptember 5, 2017 at 4:42 PM

    So they are putting in $800m in one year and you still aren't happy? You are a special kind of stupid.

    ReplyDelete
    Replies
    1. Leonard J. Muzyn, Jr., CFASeptember 6, 2017 at 5:28 AM

      Whatever you say Anonymous. The GAO team and I must just be really stupid.

      Delete
    2. AnonymousSeptember 17, 2017 at 7:07 PM

      $300m a year with a one-time payment of $500m apparently impresses Anonymous#1. But it's too little, too late; a drop in the bucket towards properly funding the retirement system, as other companies must do.

      Delete

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