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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...
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?
ReplyDeleteSuzan Bowman
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.
ReplyDeleteIf 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.
ReplyDeleteDan - 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.
ReplyDeleteI 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.
ReplyDeleteLeonard, I appreciate your efforts to do the right thing.