Leonard Muzyn's TVARS Blog

The TVARS Board today approved a July through August window during which Cash Balance employees who had less than 10 years of service as of 10/1/16 may choose to transfer their Cash Balance accounts to the 401(k). Cash Balance employees who had 10+ years of service as of 10/1/16 may switch to receiving the 401(k) only benefit going forward. They also may choose to transfer their Cash Balance account to the 401(k) if they switch to receiving the 401(k) only benefit going forward. Please be careful and understand all that you are giving up if you make any of these elections. They are completely voluntary. No changes will be made if you do nothing. Look for a letter from Fidelity soon to explain in more detail. Two different letters will be sent. One to those who had < 10 years, and another to those who had 10+ years. If you choose to make any changes, they will become effective October 1, 2018. I am working with the TVARS staff on a list of frequently asked questions and answers t...

The TVA Retirement System (TVARS or System) Board of Directors is now accepting resumes from TVA retirees interested in serving as the 7th member of the TVARS Board.  According to the TVARS Rules and Regulations, the 7th director must be a TVA retiree and is selected by a majority of the other 6 directors (3 of whom are elected by TVA employees and 3 of whom are appointed by TVA). The term of the current 7th director ends on October 31, 2018, and the position of the new 7th director will have a 3-year term from November 1, 2018, to October 31, 2021. However, the TVARS Rules provide a limited carryover period of up to one year for the current 7th director to continue in the event the TVARS Board is unable to select a new 7th director by the end of the sitting 7th director’s term. TVARS is a federal agency established by TVA in 1939 to provide retirement benefits for TVA employees, retirees and beneficiaries, and administers a defined benefit pension plan and a 401(k) plan. The TVA...

The TVARA's May 9, 2018 proposal fails to address any of the concerns raised in the November 28, 2017 letter from the elected TVARS Board Directors . The TVARA proposal: Does not recommend giving retirees the right to vote for the next 7th Director Allows three TVA-appointed Directors to keep the current 7th Director an additional year (through October 31, 2019) simply by blocking the selection of other candidates Does not address any of the conflict of interest issues Does not address any of the funding issues Ignores the GAO recommendations on TVARS funding Allows TVARS meetings to continue behind closed doors Encourages the TVA-appointed Directors and current 7th Director to use their majority to mandate an end to my service on the board