Leonard Muzyn's TVARS Blog

I would first like to take this opportunity to wish all TVARS beneficiaries a wonderful Christmas.  All the best in 2020! The following 2020 COLA, interest crediting rates, and IRS contribution limits were reported by TVARS. The following financial update was based on TVA regulatory filings and reporting by Dave Flessner, Business Editor of the Chattanooga Times Free Press.  Cost-of-living adjustment (COLA) for 2020 For 2020, the COLA for eligible retirees and beneficiaries will be 1.54 percent. TVARS Rules and Regulations provide that eligible retirement benefits (pension and supplemental benefits) will receive a COLA based on an inflation measure, which is the Consumer Price Index — All Urban Consumers (CPI-U) — an index maintained by the U.S. Labor Department that measures the price changes in a broad group of various goods and services purchased by consumers. Under TVARS Rules, the COLA is calculated as the percentage change in the average CPI-U for the period of N...

Report from the 7th Director Search Committee – Sam DeLay, Chair Please add this to the minutes for the meeting, June 6, 2019 as item A-6647, or the appropriate number. The committee met on June 5, 2019 and discussed the election progress and the prospects for another round of interviews, currently proposed for July 2019 by the TVARS Executive Pat Brackett. It was recognized that the Board would likely not be able to reach consensus on the candidates to make a selection of the 7th Director and the committee recommends another path for electing the 7th director. The committee recommends modification of Section 3(2)(a) of the Rules and Regulations of the TVA Retirement System to amended to delete the language marked through and to add the language underlined to enable retirees to elect their own representative. As part of the items for this meeting, “Attachment – Description of Instant Runoff Voting” TVARS' election service provider proposed an Instant Runoff process which ...

Next month marks the two-year anniversary of the March 2017 GAO TVARS Report .  The GAO recommended that TVA "take steps to have its retirement system adopt funding rules designed to ensure the pension plan’s full funding."  The GAO went further and recommended using a "closed amortization period" to ensure that the plan is fully funded at the end of the period.  TVARS uses an "open amortization period."  What is the difference to TVA retirees?  $4,360 million according to the GAO: Notice that in both cases, TVA begins by owing the pension $6,000 million and paying $452 million in the first year.  So far, so good.  What do we notice about the payments TVA is required to make as the years go by?  Well, using the "closed amortization period,"  the annual payment remains $452 million.  However, the way TVARS does it, using the "open amortization period," the annual payment is reduced by $3 million to $5 million as each...

The following rates were approved at the December 3, 2018 quarterly TVARS Board meeting per our elected Board members Jim Hovious, Sam DeLay and Mike Belcher.  They are effective January 2019: Retiree COLAs:  2.21% for original, cash balance, and supplemental pension benefits based on 2.46% CPI increase less 0.25%. Current Employee Interest Rates: 6.0% on Cash Balance accounts for those hired before January 1, 1996 based on 6.0% minimum. 4.75% on Cash Balance accounts for those hired on or after January 1, 1996 based on minimum of assumed investment return of 6.75% less 2.0%. 4.75% on fixed annuity accounts based on minimum of assumed investment return of 6.75% less 2.0%.

I served five consecutive three-year terms as an employee-elected director of the TVA Retirement System (TVARS) from November 1, 2003 through October 31, 2018. This blog contains my personal opinions and not official opinions of the full seven member TVARS board or TVA management. I worked very hard during my terms to keep TVA employees and retirees informed of matters that could affect their system and their benefits. I voted and campaigned against the two TVA last minute “take it or leave it” proposals for benefit reductions in 2009 and 2016. These were both approved by 4 to 3 votes without TVARS board deliberations, negotiations, or attempts to form a consensus. I repeatedly proposed proper funding per industry best practices and GAO recommendations, public board meetings, open elections among all retirees for the retiree 7th director position, and rules to keep board members free of conflicts of interest arising from contractual TVA relationships and TVA executive retirement be...

Mike Belcher won the TVARS Board runoff election with more than 55% of the vote. Thank you Mike for running, and thank you everyone who voted! I am sure Mike will represent all of us well.

The TVARS Board has the power to reduce your TVA 401(k) match.  The TVARS Board has twice voted 4-3 to reduce pension benefits.  Reducing your 401(k) match is the obvious next lever to pull. An average of less than one of every three employees voted in the initial election this year for one of the three elected director spots on the TVARS Board.  The runoff election ends October 10th.  See election details here . Please encourage other employees to vote, especially those who have not been with TVA very long and may not realize that the TVARS Board controls the amount of their 401(k) match. It is important to elect someone who will work with Jim Hovious and Sam DeLay to protect your 401(k) benefits.  The term of the current seventh director ends October 31st.  The seventh director has been the fourth and deciding vote in reducing pension benefits.  Per TVARS rules, selecting a new seventh director requires four votes from the other six directors....