In order to protect TVARS members in the event the federal government divests TVA, the TVARS board can clarify in the TVARS rules that COLAs are vested benefits. (See support from Dennis To here.)
Time is very critical now that TVA is working with President Obama’s administration on a financial review of TVA which includes the option of TVA being divested from the federal government. (See here.) TVARS could be terminated upon divestiture. It is very important that the TVARS board take steps to safe-guard benefits before this occurs. If system termination occurs while TVARS remains significantly underfunded, TVARS may never be able to achieve fully funded status.
Not one of the six other TVARS board members would second the motion I made in June 2012 to clarify that COLAs are vested benefits.
Once again, I would be glad to forward any e-mails from you to the entire TVARS board. Please e-mail them to me at ljmuzyn@tva.gov.
Time is very critical now that TVA is working with President Obama’s administration on a financial review of TVA which includes the option of TVA being divested from the federal government. (See here.) TVARS could be terminated upon divestiture. It is very important that the TVARS board take steps to safe-guard benefits before this occurs. If system termination occurs while TVARS remains significantly underfunded, TVARS may never be able to achieve fully funded status.
Not one of the six other TVARS board members would second the motion I made in June 2012 to clarify that COLAs are vested benefits.
Once again, I would be glad to forward any e-mails from you to the entire TVARS board. Please e-mail them to me at ljmuzyn@tva.gov.
Its like they are all scared of losing their jobs and will not stick up for the members which they represent! Its a shame that it has come down to you being the sole board member that will have the kahunas to stand up and cry fowl.If i were closer id ask for each of them to resign from their positions if they cannot hold true to the heart and values of why the RETIREMENT BOARD is there.
ReplyDeleteWe are at a cross road in the history of TVA and it will be one long remembered and felt by the current and future retirees.This new path that will be followed could lead to a disastrous future for all retirees and they better wake up and smell the roses. I would hate to be a current board member and a few years from now all they will be remembered for is how they railroaded their own retirement system! As they sit on the front porch in their retirement homes wondering if they can make it to the end of the month on their fixed incomes that are considerably less because they never had the courage to stand up to TVA and make their COLA's as a VESTED BENEFITS.
Sent: Monday, May 13, 2013 3:12 PM
ReplyDeleteSubject: Fw: COLA IS AND SHOULD BE CONTINUED AS VESTED BENEFIT
Leonard: Feel free to forward this to the TVARS Board and others as needed. I never heard back from anyone but you, so I don't know if the others received my e-mail or not.
THANKS - PLEASE LET ME KNOW IF THERE IS ANYTHING ELSE I CAN DO HELP
----- Original Message -----
To: Tony Troyani ; Les Bays ; pthairston@tva.gov ; jmhoskins@tva.gov ; aestokes@tva.gov ; Leonard Muzyn ; twwilson@tva.gov
Cc: tvaravw@tva.gov
Sent: Friday, April 19, 2013 2:35 PM
Subject: COLA IS AND SHOULD BE CONTINUED AS VESTED BENEFIT
When I retired in 2007 neither the TVARS nor TVA had ever questioned that the COLA is a vested benefit. My decisions at retirement were irrevocable and based on the fact that the COLA was vested. As you know, the market dropped more than 50% in the year after my retirement. In an attempt to reduce TVA/TVARS liabilities, TVA and the TVARS arbitrarily started stating that the COLA was not a vested benefit. TVARS made temporary concessions in the COLA over the last four years in exchange for TVA making a lump sum retirement contribution of $1 billion for 4 years. Prior to that time, I had never, during my 35-year plus TVA career, heard anyone, including TVA or TVARS management/employees/consultants, question the fact that the COLA is a vested benefit.
The COLA is now suppose to return to what it was prior to the last 4 years of temporary reductions and it is your responsibility to see that it does. I urge each of you to clarify that the COLA as originally stated in the TVARS Rules (% GAIN IN CPI-U, CAPPED AT 5%) is and will continue to be a vested benefit. Even with the COLA, the average TVA retiree only receives a COLA on about half their retirement income because, as you know, the COLA only applies to the pension and not the annuity portion of our retirement. The increase in medical insurance premiums each year usually equals or exceeds the COLA, so even with annual COLAs, TVA Retirees are losing buying power each year.
Please do your duty and clarify that the COLA is and will continue to be a vested benefit for TVA retires.
THANK YOU FOR YOUR PROMPT ATTENTION TO THIS IMPORTANT MATTER
Sent: Tuesday, May 14, 2013 5:42 AM
ReplyDeleteTo: Muzyn, Leonard J Jr
Subject: Fwd: TVARS Issues
Leonard,
I sent this from my TVA email address, but you were the only one who responded.
Sent: Tuesday, April 30, 2013 4:49 PM
To: Bays, Leslie P; Hairston, Peyton T Jr; Hoskins, John M; Muzyn, Leonard J Jr; Stokes, Allen E; Troyani, Anthony L Jr; Wilson, Tammy W
Subject: TVARS Issues
TVARS Board,
I am writing you as TVARS Board members elected by the employees or appointed by TVA management to represent the TVA employees and retirees in safeguarding the retirement assets and providing a sound retirement system for all present and future employees.
As my elected or appointed representative I also urge you to take the following actions:
1) The TVARS Board should certify that the COLA as a vested benefit within the retirement system.
2)
Given the recent discussion by President Obama on the possibility of selling TVA, it is in the best interest of the employees and retirees to assure that the TVARS is fully funded and that the COLA is included in the formula.
Respectfully,
Sent: Sunday, May 12, 2013 9:58 PM
ReplyDeleteSubject: To TVARS Board
TVARS Board Members:
I am writing to you as a retired member of TVARS.
At this juncture of the Fiscal year, I am sure that someone is developing the TVARS FY '14 budgetary needs.
There are a couple of points that I feel the Board must address from a fiduciary perspective in its FY '14 submittal to TVA:
One of these has to do with the return to the normal application of COLA rules and regulations in FY '14. The 4 year hiatus by Mr. Kilgore was NOT in accord with longstanding TVARS rules and regulations pertaining to the COLA being a vested benefit. The TVARS Board must assert to TVA that the COLA is a vested benefit and the hiatus was a violation of TVARS rules and regulations.
Secondly, the TVARS Board FY'14 submittal must address the matter of TVA's (undisputed) diversion of collected revenues for the TVARS account. This matter has been addressed by Mr. Dan Pitts in a couple of letters to TVA Senior Management as well as elected representatives. I understand you'all have been are aware of these and have been copied on the distribution. If not, please let me know and a copy will be made available.
The gravity of the above points are self evident. However, they are even more important owing to the potential sale of TVA and the resultant impact to TVARS. Each of you and the other members of TVARS have a self interest in a well funded TVARS with COLAs. The record needs to overtly address these points so that there is not a dispute on these matters in the event TVA is disposed of by the Federal Govt.
Thanks
Sent: Sunday, May 12, 2013 10:13 PM
ReplyDeleteTo: Leonard Muzyn
Subject: Fwd: To TVARS Board
Please indicate to TVRS my concurrence with these concerns.
Also ask TVA and TVRS where they are taking us.
Hoskins will speak at Retiree meeting in June. Is it worth attending?
Sent from my iPhone
Sent: Saturday, May 18, 2013 7:37 PM
ReplyDeleteSubject: To TVARS Board
TVARS Board Members, I call on each of you to support the COLA as a vested benefit. Please do all that is in your power to secure our retirement benefits. Obama looks to divesting TVA only the retires and the TVA Region population will be hurt by this move.
Sent: Saturday, May 18, 2013 11:45 PM
ReplyDeleteSubject: To TVARS Board
TVARS Board:
I urge you to demand that in the event TVA is divested from the federal government that the deal include returning the TVARS to fully funded status AND guarantee that COLA’s are vested benefits.
Thank you,
Sent: Monday, May 20, 2013 10:58 AM
ReplyDeleteSubject: TVARS Letter
Dear TVARS Board,
I am a career TVA employee who has planned for many years a full retirement and pension from TVA. I have been provided annual Personal Statement of Benefits and customized reports from TVA Retirement showing my projected monthly retirement benefits and have been planning my retirement accordingly. I am concerned that the lack of proper pension funding by TVA over the last few years is jeopardizing my monthly benefit estimates that have been communicated to me. Furthermore, the lack of interest shown by the TVARS board recently on protecting future payments of the cost of living adjustments (COLAs) and the divestiture discussions surrounding TVA as a whole leave me very perplexed and disillusioned when thinking about retiring in the near future.
I don’t understand why again in FY2012 you decided not to contribute to the TVA retirement account. This mistake has been made in the past and I thought the TVARS board would have learned from past mistakes. Just because the retirement system assets performed well during a year doesn’t mean you shouldn’t contribute for that particular period As learned from our past mistakes this could lead to an underfunded situation when we have down years in market performance. If you had contributed in FY2012, as well as other years where there were no contributions, then these assets would have helped make up the current underfunded situation and would have been doing quite well in FY2013 with the market at all time highs. Also, just because the market is doing well again this year, please don’t make yet another mistake and not contribute this FY to the retirement account. Are each of you personally not contributing to your 401ks because the market performed better than expected in 2012 and again this year? I would venture to guess that this is not the situation.
In planning for my retirement I and my colleagues have also been led to believe by the TVARS that an annual cost of living increase was to be expected. That is until recently when COLAs have been adjusted by the TVARS board so that they are not applied now every year as in the past. Now I am hearing that COLAs may not be considered a vested benefit either.
I believe that the TVARS Board should adopt a resolution ASAP such that COLAs are non-forfeitable and considered a vested benefit that cannot be taken away from current retirees. This would be consistent with the principle whereby the rules and regulations in effect at time of retirement are considered to be the equivalent of a legally binding contract between the employer and the retiree. Not only would this resolution protect the retirement benefits of retirees and employees, it would also serve to protect the interest of current employees like myself. Since I am considering retirement in the next few years this is very important to me in helping me to make my retirement decision and I would appreciate your strong consideration on this matter.
Continued...
ReplyDeleteSent: Monday, May 20, 2013 10:58 AM
Subject: TVARS Letter
I also believe that timing is critical now that TVA is working with President Obama’s administration on a financial review of TVA which includes the option of TVA being divested from the federal government and considering the fact that the TVARS could be terminated upon divestiture. I have not dedicated myself to TVA for 33 years while looking forward to a fulfilling retirement to now learn that my pension and COLA might not be what has been communicated to me all these years.
I believe it is very important now that each of you as members of the TVARS board take the necessary steps to safe-guard mine and other members benefits before any of these events occur. If system termination should occur while the TVARS remains significantly underfunded, then the TVARS may never be able to achieve fully funded status.
I strongly urge each of you to discuss these points in your next board meeting (or before) and to work together to protect the retirement needs of current and future retirees like myself. You have been either elected or appointed because of others trust in you to represent everyone and we will be counting on you to do what's best for everyone on these matters.
Thank you for your consideration on this matter and I look forward to hearing from you and seeing what you do to protect our interest in this matter.
Sent: Monday, May 20, 2013 5:09 PM
ReplyDeleteTo: Bays, Leslie P; Muzyn, Leonard J Jr; Troyani, Anthony L Jr; Hairston, Peyton T Jr; Hoskins, John M; Wilson, Tammy W; Stokes, Allen E
Subject: TVARS - Benefits and TVA funding
To the elected and appointed members of the TVARS Board:
I am a member of the original benefit structure with over 27 years serving TVA. Over the last few years my concerns have increased with the financial obligations and changes made to our retirement plan. With recent announcements of voluntary RIFs within coal operations and potential for more within TVA, I feel that I must speak now and ask that due diligence be exercised in ensuring our “promised” benefits are protected. As you know, unlike executives within TVA management, TVA retirees depend heavily on their pension benefits. I also accept responsibility for adding to my retirement savings to ensure my family is prepared for the future and I take that responsibility seriously.
I would ask that you seriously consider the following in the decisions you make and how these will affect current and future retirees. After all, it is your responsibility to ensure TVA adequately funds the promised benefits and I heard nothing from Tom Kilgore or our new CEO Bill Johnson that they intend to do anything less than keep these promises.
1. TVA annual contributions – just because TVA was allowed to not make contributions for many years with stock market gains, the responsibility was still to ensure our promised benefits were covered. Stock gains should be insurance to ensure the system is financially stable, not allow TVA to withhold contributions. Today our retirement benefits aren’t fully funded.
2. With unanticipated burdens placed on the system after VRIFS are effective, it is imperative that TVA make adequate contributions to cover these additional retirees. It isn’t right for TVA to save money by pushing the responsibility to the retirement system.
3. COLA’s – How can anyone believe that this wasn’t a vested benefit? I know of no other defined pension plan that does this.
4. Openness and transparency – I realize some meetings wouldn’t be appropriate to allow anyone to attend, but when you are deciding on how to best serve those who are or will retire, isn’t it important the TVARS members understand why changes are necessary? The elected members of the board should serve those who voted for them and at least poll the folks impacted to understand what they think is appropriate. Isn’t this how a democracy works?
5. Potential for divesture of TVA and TVARS – I can’t control what our US elected officials will do with TVA, but regardless, our retirements benefits should be kept in a position to fulfill its obligations to retirees.
I appreciate the time you have taken to consider my concerns. I realize the job you do isn’t easy and I am not pointing fingers, but am truly concerned that our promised benefits may not be the highest priority for TVA when we are continually under pressure to reduce costs and expenditures.
Thank you,
Sent: Tuesday, May 21, 2013 9:55 AM
ReplyDeleteTo: Bays, Leslie P; Muzyn, Leonard J Jr; Troyani, Anthony L Jr; Hairston, Peyton T Jr; Hoskins, John M; Wilson, Tammy W; Stokes, Allen E
Subject: TVARS / RETIREMENT FUND
MEMBERS OF THE BOARD,
I ASK FOR YOUR SUPPORT IN GETTING THE RETIREMENT FUND FULLY FUNDED, AND COLAS TO BE VESTED BENEFITS. AT THIS TIME OF TVA GOING UP FOR SALE IF IS OF THE UPMOST IMPORTANCE TO FULLY FUND THE RETIREMENT SYSTEM. THIS IS A PART OF OUR COMPENSATION PACKAGE FROM WORKING FOR TVA. IN THE PAST TVA HAS STATED THEY WERE GOINGTO MAKE CONTRIBUTIONS BUT NEVER DID.(LAST YEARS CHATT. TIMES AS TO WHY THEY WERE RAISING RATES). I WOULD LIKE TO SEE THE MEETINGS OPEN TO MEMBERS BEFOR THE RECOMMENDED CONTRIBUTION AMOUNT IS SET FOR THIS YEAR. IM AFRAID TVA WILL AGAIN ASK FOR CUTS ON OUR RETIREMENT LIVELIYHOOD.
THANK YOU
Sent: Sun, May 19, 2013 9:26:25 PM
ReplyDeleteSubject: Re: Why isn't the TVARS board protecting TVARS members?
Members of the TVAR's board,
Please represent your members by ensuring our vested benefit of a COLA is clear as TVA is at a juncture with the current administration. I myself can speak that during the last couple of years that the COLA was withheld/reduced, my expenses did not reflect the same flat inflation rate that the TVAR board predicted. My insurances have increased as well as utilities and down to groceries. Now we (retirees) are behind the inflation "ball" and to are trying to catch up. If the COLA is not supported to offset inflation and cost of living, I fear our pensions will be "swallowed up" by the rising costs. Again I ask please support this benefit and protect the retirees that rely on it.
Thank you for your time and service
Sent: Tuesday, May 21, 2013 9:37 PM
ReplyDeleteSubject: COLAs
Dear Members of the TVARS Board of Directors,
RE: COLAs
I am retired from TVA after 29 years of service. I am very much enjoying my retirement and I am grateful for the system that made it possible. I am writing to urge you to preserve this fine system and confirm in legal language in the TVARS rules that COLAs are, as promised many times to us in the annual report, TVARS literature, and by TVARS representatives, vested.
Most of us considered very carefully their sources of income and other savings in retirement before taking that big step. In my case, the pension and social security together would provide easily my basic needs. Knowing (I thought) that these two had a guarantee of a COLA, I felt secure, knowing that the annuity would be worth less and less in future dollars, and anything could happen to my other savings. We were responsible in making the retirement decision.
For all of us who have made this leap of faith to retirement, I urge you to make absolute the vested COLA for the pension. TVA did not contribute the prescribed amount to the retirement system in the fat years - but disavowing the COLAs is not the way to atone for this mistake. You must, in good conscience, make the COLAs vested and ensure that the appropriate funding is provided to the TVARS by TVA starting immediately.
With respect for what you do - I thank you for your service on the board and pray you will make the right decision.
Sincerely,
Sent: Tuesday, May 21, 2013 5:52 PM
ReplyDeleteSubject: TVARS
Leonard,
Why is it so hard for people to want to serve (ask to serve) and then after they get what or where they want they forget what the TRUE meaning of holding a position is. it should not be hard for anyone to follow what was set up years ago by people/employees to follow. i have followed all the rules set up by TVA (Safety, HR issues, raises, Etc.) and did sway or try to change in mid stream any rule they (TVA) set up but, now TVA wants to change items that was put in place (THAT WAS SUPPOSE TO BE FOLLOWED) to fit what the current administration of management wants. The current administration (MOST OF WHICH ARE NOT PEOPLE OF THE VALLEY) and could care less about the people of the valley let a long the employees or retirees of TVA and should be run out of TVA back to the states from which they come.
I know these TVA managers are just here to rape the system of funds just like Tom Kilgore did after retiring and pushing for the new CEO (from progress) here to get his hands on the system also. I'm sure he to will bring all his buddies to TVA as did Kilgore and TVA is now asking for RIFs from fossil plants but, you get bet your hind-end none of the upper management will be touched or impacted from the reduced head count.
As for the team of board members on the TVARSB all of them are nothing but YES employees but you. the rest of them don't have enough strength (B***S) to stand up for what is the right thing to do (FOLLOW THE BY-LAWS THAT WAS PUT IN PLACE) and quit trying to be like a bunch cowards and bow down to management. Do they not have a vested interest in the system ?
Its a complete SHAME that the un-trust or distrust that this board has placed on the retirement system for all the retirees and employees looking to retire.
WE HAVE GOT TO OPEN UP THE MEETING TO THE EMPLOYEES AND RETIREES TO PUT TO REST THESE UN-TRUST WORTHY ISSUES THAT ARE BEING PUT IN PLACE BEHIND OUR BACKS. SHAME ON ALL OF THE MEMBERS FOR SUPPORTING THE RIGHT THING TO DO.
PLEASE FORWARD MY CONCERNS TO THE REST OF THE BOARD AND THANK YOU FOR BEING A REAL MAN OF YOUR WORD.
Sent: Wednesday, May 22, 2013 2:26 AM
ReplyDeleteSubject: TVA's Divesiture - Proposed Resolution on COLA Vesting
TVA retirees put in many years of service and worked hard to put money into their retirement, so that they would have a sound retirement in their years of retirement. I chose to except a job at TVA because of the benefits and retirement system. I have never heard of the COLA not being vested after working 30 years at TVA. I assume the reason for this is TVA wants to justify the elimination of the COLA and would like to terminate the retirement system in order to facilitate their negotiations with potential buyers.
TVA could sell to a non-federal agency and this would expose retirees to a risk of bankruptcy. The TVARS Board should adopt a resolution to keep the COLAS and assure they are not forfeited or vested benefits that will not be taken away from current retirees.
TVA should honor the rules and regulations in effect at the time of retirement and should be treated as a legal binding contract between the employer and the retiree. TVARS is suppose to take care of the retirees and ensure that we are treated fairly and we expect this critical resolution to be adopted as soon as possible before something unforseen happens to TVA or TVARS. I think it is the duty of the TVARS Board to be dedicated to the membership to take this action to protect the retirees and the TVARA owes it to the retirees to support the TVARS Board in this matter.
We went for many years without TVA putting anything in to the retirement system and that is the reason it has been underfunded and we should not have to pay the price for mistakes TVA made nor be expected to sacrifice our COLA which has always been vested.
The TVARS Board should support the passing of a resolution to declare COLAS as vested as soon as possible. We are counting on you to stand up for the retirees and do what is the honest and honorable thing to do for those who gave many years of service and hard work to TVA.
Sincerely,
Sent: Tuesday, May 21, 2013 10:14 PM
ReplyDeleteSubject: Re: E-mails sent to TVARS board members re Vested COLAs
Leonard, I wholeheartedly agree with the statements below that our COLA is a vested benefit. In my 34 years as a TVA employee, I never heard anything to the contrary, until this new regime of TVA managers and TVARS board members started trying to convince us otherwise. This is a very important issue and an equally important issue that no one has even brought up is the pension insurance issue or the lack thereof. All these years I questioned various TVARS board members on this issue. The TVARS pension fund is NOT insured like the pensions of corporate entities. I was always told that TVA doe not pay into the US government's pension guaranty insurance program "because we are a government entity". But TVA is notorious for flip flopping hats whichever is the most convenient as to whether they are a government entity or a corporation. If the TVARS fund were to fold, we are out on a thin limb because the US government is NOT going to supply the funding necessary to keep it solvent. So now we come full circle to the recent talks by the Obama administration about selling TVA. What do you think that will do to our pensions and annuities? If a corporation bought all of TVA the first thing they would do is raid our pensions, just like so many other corporations did in the 90's including John McCain's company, and American airlines, and many more did. Before anything like that happens, we MUST demand the TVARS or TVA insure our pension fund against foreseen calamities. This might be more important Than COLAs in the short time span. We all worked hard and were dedicated TVA employees for 30 or more years and we all expect to be able to enjoy the fruits of our hard work and savings without having to worry about TVA management creating special retirement programs for their carpet bagging managers or placing undo and unfunded demands on our pension program. I have supported during all of your elections and am proud of what you have done to keep us informed and to stand up for all of our rights. I am greatly dismayed at the other two members' representatives and the retirees' representative and the way they have been voting. I pray for you to keep the faith and hope we can restore some sanity and respect toward the retirees that made TVA what it has become up till recent years. Unfortunately it has back slid some with the decisions it has been making the past 5-10 years including the recent issue with the hiring of the CEO. Please continue your valiant work and know that there are thousands standing behind you and appreciate what you are doing.
Sincerely
Sent: Saturday, May 18, 2013 4:02 PM
ReplyDeleteTo: Stokes, Allen E; Herrin, Janet C; Hoskins, John M; Muzyn, Leonard J Jr; Bays, Leslie P; Wilson, Tammy W; Troyani, Anthony L Jr
Subject: Questions for each TVARS Board Member
To the TVARS Board,
Why isn't the TVARS board protecting the TVARS members? I'm dumb founded that this board can look any TVARS member in the face and say they are looking to protect and preserve our retirement that we have worked so hard for. There should be an immediate vote in the affirmative to protect our rights to our COLAs and to ensure that all promised benefits will be available to all members now and in the future. Whether deserved or not the perceived impression is that of a self-serving TVARS board. Meetings should be open to all membership and transparency should be the norm. Time is very critical because of the threat of divesting TVA by the Obama Administration. TVARS remains significantly underfunded and TVA threatens the TVARS being additionally underfunded by offering vouluntary RIFs which will put an additional strain on funding.
It is time for the TVARS Board to stand up for what is legally and morally right. I would like to hear from each of the board members on their stand on these issues. Where do you stand on future COLAs, open meetings for all TVARS Members, future contributions from TVA, catch up contributions for all the years that TVA failed to properly fund the TVARS. I don't need to hear the TVA talking points I need to hear from you... your honest thoughts and beliefs.
Once a year, each division within TVA has an ALL-Hands meeting to report on the status of their division. I think it is way past due for the TVARS Board to meet at each of the sites once a year and give an Annual Reporting and give the membership an opportunity for a question and answer session.
Thank you in advance for responding to my information request. I hope I'm not disappointed by lack of interest in talking with the members and that I will hear from each of you.
Thanks,
Sent: Thursday, May 23, 2013 6:10 PM
ReplyDeleteSubject: Vested COLAs
Please forward to board members.
As a retiree, I am very concerned with the fact that the TVARS Board has been ignoring the interests of the retirees & future retirees. Please vote to continue COLAs as a vested benefit & ensure that all our benefits are safe-guarded.
Maybe we should organize a legal protest. Maybe we will at least get some kind of acknowledgement.
ReplyDeleteSince TVARS Board has for all practical purposes abandoned those they are supposed to represent, i.e. not monitoring the pension collection, and calling TVA out on that redirection of the same, they have acquiesced in that process which in all probability is a fraud committed upon not only the rate payers, but also the current employees and retirees,which contributes to the shaky funding situation. I wonder if the annuity part of my retirement income is still there and safe, or is it being used in an expanded shell game.
ReplyDelete