Leonard Muzyn's TVARS Blog

On July 14, the TVARS board voted to recommend that TVA contribute $350 million to TVARS in 2015.  Jim Hovious and I supported and voted for this recommendation when it became clear to us that the board was likely to recommend a lower amount without our support.  Per the outdated formula in the TVARS rules, TVA must contribute at least $215 million in 2015.  Changing the minimum contribution formula would require the approval of both the TVARS and TVA boards.

TVA looks for way to replenish underfunded pension plan by   Dave Flessner view bio  »      When President Franklin Roosevelt created the Tennessee Valley Authority in 1933, he wanted TVA to be “a corporation clothed with the power of government but possessed of the flexibility and initiative of a private enterprise.” TVA’s unique status as an independent federally owned corporation helped it capture the power of the Tennessee River and keep power rates relatively low for most of its 81-year history. But some TVA retirees fear that TVA’s independence also now threatens the security of the utility’s retirement program for nearly 36,000 current and retired TVA employees and their families. TVA’s employee retirement fund is more than $4 billion short of what actuaries estimate it should have to pay all the promised future retirement benefits. Although the fund remains one of the biggest in the Southeast and has more than enough money to pay current reti...

Funding Motion On June 20, I moved that the TVARS board adopt the funding policy developed by our actuary which is consistent with the Employee Retirement Income Security Act (ERISA).  This is the funding policy our competitors are legally required to follow. recommend the corresponding contribution of $715 million for 2015. I explained that approving my motion would not require TVA to do anything.  TVA could still contribute less than $715 million.  Efforts to reach a negotiated settlement to the lawsuit would continue. demonstrate that the TVARS board is suggesting a nationally acceptable plan to achieve a financially healthy retirement system. Jim Hovious seconded my motion, but besides the two of us, no other board member expressed support.  Instead, a majority of the board voted to table my motion. Election Update The TVARS board did not change the voting process for the upcoming election.  Nominating petitions can be submitted beginni...

I believe current TVARS board members who were on the board at the time the following occurred still owe TVA employees and retirees answers to the questions below.  Jim Hovious was not on the board at the time the following occurred.  Jim told me that he would have seconded the motions below and that he would not have voted to recommend TVA contribute only $285 million in 2014.  Why leave TVA employees and retirees vulnerable to further COLA benefit reductions, and make it more difficult for their lawsuit to achieve a fair settlement, by refusing to second the motion I made to clarify that the COLAs are vested benefits? Why refuse to second my motion to have open meetings where TVA employees and retirees could observe? Why vote to maintain TVARS' poor financial condition and recommend TVA contribute only $285 million in 2014, thereby enabling the shifting of blame for the system's poor financial condition to the TVARS...

Later this week, prior to the upcoming TVARS board election in a couple months, the TVARS board is scheduled to discuss eliminating run-off elections by adopting instant run-off, or ranked voting.  Why is it that the TVARS board always seems willing to discuss changes to reduce the interaction between board members and the employees and retirees who are counting on them to protect their pensions?  I believe that there needs to be more interaction - not less. I believe current TVARS board members who were on the board at the time the following occurred still owe TVA employees and retirees answers to these questions: Why leave TVA employees and retirees vulnerable to further COLA benefit reductions, and make it more difficult for their lawsuit to achieve a fair settlement, by refusing to second the motion I made to clarify that the COLAs are vested benefits? Why refuse to second my motion to have open meetings where TVA employees and retirees could observe? Why vote to mai...

By Daniel M. Pitts | May 26, 2014 Source:  Pensions & Investments (Click here ) With widespread improvements in pension plan funded levels reported for U.S. corporations, it was alarming to learn the Tennessee Valley Authority's pension plan was only 63% funded at the end of its fiscal year Sept. 30. This funded level puts TVA's pension plan among the worst funded pension plans of major electric utilities in the U.S. The pension plan's current funded status, TVA's reluctance to properly fund it, and the fact that the pension benefits are not guaranteed raise serious questions about the long-term well-being of the pension promise to participants. Upon realizing the critically deficient standing of TVA's pension plan, I reviewed the 10-K financial statements, filed with the Securities and Exchange Commission, of six utilities that compete with TVA: Exelon Corp., Entergy Corp., Duke Energy Corp., American Electric Power Co., Southern Co. and Dominion Resour...

From: Dennis To [mailto:dpto19533@gmail.com] Sent: Thursday, May 08, 2014 12:36 AM To: Dennis To Subject: Special Committee to negotiate for riffed employees on annuity protection If Bill Johnson succeeds in selling TVA, TVARS would mostly likely be transferred to a non-Fed entity.  The rif puts even more burden on the pension system.  The situation is getting quite precarious.  For the new retirees (ie., riffed employees), I think they should form a special committee to negotiate with TVA about how to protect their annuity savings in the event TVA gets sold and the pension system runs out of money.  Such a committee would have a special leverage on their negotiations with TVA.  They know TVA desperately needs the new retirees to leave their annuity savings with TVAR in order to help relieve the cash flow burden in the coming yrs.  If TVA does not cooperate, the committee can threaten to advise the new retirees to transfer their annuity money to...