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TVA Funds Total Cost of Executive Pension; Less than half of Non-Executive Pension

In 2014, TVA funded 100% of its executive pension cost, but less than 50% of its non-executive pension cost. Per TVA’s 2014 10K financial statement:
Supplemental Executive Retirement Plan. TVA has established a SERP for certain executives in critical positions to provide supplemental pension benefits tied to compensation that exceeds limits imposed by IRS rules applicable to the qualified defined benefit pension plan. TVA has historically funded the annual calculated expense (p. 124)
TVA contributed $256 million of $517 million in total pension cost, including the executive pension, charged to ratepayers in 2014. (pp. 126, 128)

Comments

  1. AnonymousDecember 14, 2014 at 4:04 PM

    Looks like TVA is short-changing employee retirement accounts while fulfilling the "executive accounts". Nothing new here until someone smacks their hands.

    ReplyDelete
  2. AnonymousDecember 15, 2014 at 8:30 PM

    The problem is that no one cares enough to take action about it. It is not ethical to fully fund the executive pension funds and pay big executive bonus while shorting the non-executives.

    ReplyDelete

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