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Why you should not vote for Bill Johnson's Proposal

From: Muzyn, Leonard J Jr [mailto:ljmuzyn@tva.gov]
Sent: Monday, January 11, 2016 10:59 AM
To: Troyani, Anthony L Jr ; Stokes, Allen E ; Wilson, Tammy W ; Hoskins, John M ; Child, Brian M
Cc: Hovious, James W ; Leonard Muzyn (home)
Subject: Why you should not vote for Bill Johnson's Proposal

Tony, Allen, Tammy, John and Brian,

I want to make it very clear that I will not vote for Bill Johnson’s proposal and that I am doing everything I can to convince you to vote against it.  I believe my fiduciary duty requires me to do this.  Please see some of my reasons below.  I gave a two hour presentation to the TVARA Board in Nashville last Wednesday asking the TVARA Board to recommend a vote against Bill Johnson’s proposal.  Jim Hovious agreed and also participated in this meeting.  I have attached that presentation.  I am not copying any lawyers on this e-mail because I want to make sure this e-mail is discoverable when the inevitable lawsuits follow if you choose to approve the proposal.  This e-mail will help make it clear that Jim and I performed our fiduciary duties and that we should not be sued if Bill Johnson’s proposal is approved.  I hope you will see the precarious situation you will be put in if you vote for Bill Johnson’s proposal.  Judge Trauger’s ruling stated that TVA and TVARS cannot be sued for enforcement of the rules, but each of you could be sued individually for reducing benefits that you determined are vested.  You told the Court COLAs were and are vested benefits in your March 2015 response to motions.  Each of you who vote for Bill Johnson’s proposal will be voting to reduce benefits that you know are vested.  This leaves each of you open to lawsuits as individuals while probably leaving Bill Johnson and TVA in the clear.  Bill Johnson could say that he was relying on the TVARS Board to propose only benefit reductions that affected non-vested benefits.  None of you would be able to say this.  Please protect yourselves and make it known that you do not support Bill Johnson’s proposal.

Leonard     

From: Leonard Muzyn [mailto:tvarsmuzyn@gmail.com]
Sent: Saturday, January 09, 2016 3:36 PM
To: Muzyn, Leonard J Jr
Subject: TVA Pressures TVARS to Circumvent Court of Appeals

TVA External Message. Please use caution when opening.
TVA has asked the TVARS Board to vote this month on a proposal to permanently reduce pension benefits:
  • prior to a ruling from the Sixth Circuit Court of Appeals on the 2009 benefit reductions
  • in a way the TVARS Board has already determined is in violation of TVARS rules and regulations
  • in a way that would be illegal if TVA's pension plan was covered by laws that other pension plans must follow
  • which could lead to lawsuits from system beneficiaries against each individual TVARS Board member who votes to approve the proposal
  • with the vote on the proposal highly likely to be in TVA's favor given TVA's de facto control over the TVARS Board
  • with TVA asking for retiree and employee feedback without agreeing to make all of it public, enabling it to be selectively divulged or ignored

I gave a presentation to the Board of the Tennessee Valley Authority Retirees' Association on January 6, 2016 in Nashville, TN explaining many of these items in further detail.  Please view that presentation here.

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