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Showing posts from December, 2016

TVA Workforce Pension Benefit Reductions / Golden Parachute for TVA's CEO

The TVARS Board approved the following 2017 benefit reductions on December 8, 2016 in order to comply with the rule amendments passed 4-3 by the TVARS Board in a special-called meeting on August 8, 2016.  See the transcript of the special-called meeting here . 17% reduction of the annual compounding rate in the cash balance pension formula (6% reduced to 5% for employees first hired on or after 1/1/96) 1.24% supplemental benefit 2017 COLA, as well as all future supplemental benefit COLAs, eliminated for most retirees Reduced maximum supplemental benefit to apply to all current and future retirees 1.24% pension COLA reduced to 0.99% for retirees 6% fixed fund interest rate during employment reduced to 5% for employees who have balances based on their own contributions in the fixed fund In contrast to reduced retirement benefits for TVA employees and retirees, on December 12, 2016 the TVA Board gave TVA's CEO a golden parachute.  If President-Elect Trump appoints

More Filings in Support of Employees and Retirees in TVARS Court Case

 INTRODUCTION In the words of the Sixth Circuit, “TVARS has an obligation to look out for the interests of plan participants . . . .” At a minimum, TVARS must follow its own Rules. That did not happen between 2009 and 2013. The TVARS Board passed amendments that slashed hundreds of millions of dollars of COLA and interest benefits. The Board failed to give proper notice of the amendments and disobeyed the Rules that protected such benefits. The Board then took hundreds of millions of dollars out of the Excess COLA Account, a fund set aside to pay for COLAs in the future. The amounts taken far exceeded the limits in the Rules. The Court should grant summary judgment to Plaintiffs and enforce the Rules. It makes a difference to tens of thousands of employees and retirees. Not even federal agencies can ignore the law for cost savings or expediency. 259-0. 12-02-2016 Plaintiffs' Reply in Support of Motion for Summary Judgment.pdf 259-1. 12-02-2016 Appendix of Unreported