As part of TVA CEO William D.
Johnson’s $5,904,531 compensation package for nine months work in fiscal year
2013, he received $2,051,329 of value in his Supplemental Executive Retirement
Plan (SERP). The SERP is made available
to a limited number of TVA executives and is not part of TVARS. The SERP received $6,000,000 of ratepayer
money. Mr. Johnson received $12,066 of
value in his TVARS pension. TVARS
received nothing. (See pages 135, 168 and 172
in TVA’s fiscal year 2013 10-K financial statement.)
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...
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