Skip to main content

TVARS Says NO to Retiree Voting; Instead Extends Allen Stokes' Term

On Monday October 30, with less than 36 hours remaining in Tony Troyani's term, and with retiree member Allen Stokes ignoring my request that he attend, the TVARS Board voted 4-2 against allowing all retirees to vote for the retiree TVARS Board member (aka the 7th member). The meeting was specifically called by Wilson Taylor, Tammy Wilson and Brian Child to occur prior to the expiration of Tony Troyani's term to vote on their proposal to change the rules to keep Allen Stokes on the TVARS Board indefinitely. Jim Hovious and I proposed retiree voting as an amendment by substitution to the original proposal, allowing it to be voted on first.

  • Voting FOR retiree voting:  Leonard Muzyn; Jim Hovious
  • Voting AGAINST retiree voting:  Tony Troyani, Wilson Taylor, Tammy Wilson, Brian Child
  • ABSENT:  Allen Stokes

Sam DeLay, the employee elected member who defeated Tony Toyani, stated in his campaign statement that he supported allowing retirees to vote for the retiree board member. However, his term did not begin until midnight the following day.

Retiree voting for the 7th member would significantly improve TVARS governance by increasing the accountability of the 7th member and also ensuring that the TVARS Board would always have a full complement of seven members, including a TVA retiree. The first election would be held this summer to fill the 7th member term beginning November 1, 2018.

Instead, the TVARS Board voted 4-2 (same vote breakout as above) to extend Allen Stokes term. Fortunately, after arguments presented by Jim and myself, they modified their amendment to extend Allen Stokes term for up to only one year. They also modified their amendment to place some limits on Allen Stokes' voting power during his extended term.

Sam, Jim and I plan to call for another vote to approve retiree voting for the 7th member in the near future. We believe it is very important that all retirees currently receiving benefits be permitted to vote for the 7th member. We believe it is important that a retiree need not belong to any particular retiree organization in order to do so. 

Comments

Popular posts from this blog

A Task Assigned to the TVARS Board

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

Introduction

This is my personal blog to facilitate communication among TVA employees, retirees and beneficiaries who are members of TVARS and who wish to preserve their retirement benefits. Please join my site and post your comments.  I have been an elected member of the TVA Retirement System (TVARS, or the system) board of directors since 2003. I am not speaking officially for the TVARS board of directors or TVA management. TVARS is an entity legally independent of TVA. Three of the board members are TVA employees (including myself), three are appointed by TVA management (currently all TVA executive managers), and the seventh is generally a retired TVA employee (appointed by the other six). As TVA employees, we all have a duty of loyalty to carry out directives issued by TVA management in our regular TVA jobs. However, each board member has a fiduciary duty to all the members of the system when performing TVARS duties. This fiduciary duty legally supercedes our duty of loyalty to carry out direct

Why do TVARS board meetings remain closed?

Within the next couple of months, the TVARS board must vote on a contribution amount to recommend that TVA make in fiscal year 2014. In conjunction with the contribution amount, it is possible the vote will include amendments to the rules. In conjunction with the contribution amount in 2009, the rules were amended to: suspend contribution requirements and related actuarial valuations for four years (Section 9B9); suspend the requirement that part of the contribution go to the “excess COLA account,” which was designed to accumulate and grow funds to be used for payment of future COLAs (Sections 9B9, 10D1 and 10D2); and reduce legitimate accrued pension benefits (Sections 6I, 7L and 18C3). The vote in 2009 was not open to observation, and unless the TVARS board takes action, neither will the vote this year. Not one of the six other TVARS board members would second the motion I made in December to open TVARS meetings to observation. All that is required to open future boa