Leonard Muzyn's TVARS Blog

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...