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Sixth Circuit Agrees with TVA: COLAs Not Vested

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Comments

  1. UnknownAugust 12, 2016 at 10:12 PM

    Leonard, Can the TVA decide in the next 25 days to veto the Vested COLA benefit that they agreed to in principle last spring? Thus we lose the COLA going forward?
    Suzan Bowman

    ReplyDelete
  2. Leonard J. Muzyn, Jr., CFAAugust 13, 2016 at 9:57 AM

    Suzan - TVA can veto the rule amendments, but then nothing would change until the TVARS board passes different rule amendments that TVA wants. Changes to the rules must originate with the TVARS board. If TVA tries to go this route, they could come to Allen Stokes and you and attempt to convince you both what a great idea rule changes which eliminate COLAs would be. However, I strongly expect that rather than risk angering everyone with further COLA reductions at this time, they would instead try to slip in some different wording that would make it easier for them to cut COLAs again sometime in the future. In this case, they would most likely offer you some sweetener, or say that the amendments already passed hurt retirees in some way that needs to be corrected. Please be alert to this possibility.

    ReplyDelete
  3. UnknownAugust 13, 2016 at 1:16 PM

    If TVA reneges on the COLA vesting, it seems all the other items agreed to and included in the negotiations would then be off the table.

    ReplyDelete
  4. Leonard J. Muzyn, Jr., CFAAugust 13, 2016 at 10:03 PM

    Dan - I agree that all the other terms and conditions should then be off the table. However, in addition to the points I raised in my reply to Suzan, TVA could threaten to terminate the system again if TVA does not get the changes they want. This bullying tactic has already worked twice - 2009 and 2016.

    ReplyDelete
  5. AnonymousAugust 14, 2016 at 8:45 PM

    I received an e-mail from SJ Bryson to make reservations for the 2016 TVA Retiree Appreciation Picnic hosted by TVA. I think TVA's actions on the pension, medicare supplement insurance and other issues make it clear how much TVA appreciates the retirees. I for one will not attend this hypocritical event and I hope my fellow retirees will boycott as well.
    Leonard, I appreciate your efforts to do the right thing.

    ReplyDelete

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