Leonard Muzyn's TVARS Blog

Our actuary expressed five key concerns with the funding policy in TVA’s April 18, 2016 proposal.  These concerns were included in a written report to TVARS and are applicable to what the board approved in the May 9, 2016 meeting.  Board members owe a fiduciary duty to the beneficiaries of the system to act in their best interest independent of TVA.  Therefore, as a TVARS board member, I had no choice but to vote against this proposal.  This proposal may help TVA executives meet their goals and receive larger bonuses, but it exposes beneficiaries to these five very serious concerns.  I am ashamed to be associated with this board whose majority so clearly demonstrates that they place their own career advancements and financial securities above the duties required of them as members of this board.  This is a summary of the five key concerns expressed by our actuary about the proposal: It is not clear if participants or TVA are bearing the investment risk if the return on risky assets

Brian Child called for a vote on the first page of Bill Johnson’s latest letter.  It is not clear to me what the total changes are that the TVARS board has approved.  It did not seem to matter exactly what we were voting on.  Allen Stokes, Brian Child, Tammy Wilson and John Hoskins voted to approve whatever it was.  So much for an independent, collaborative and methodical TVARS board.  I’ve been involved in negotiations before and this had nothing to do with negotiating.  Like you, I will wait and see what spin TVA puts on it and try to figure out exactly what it means. From: Leonard Muzyn Date: Thursday, May 5, 2016 at 6:39 PM To: "tvarsmuzyn@gmail.com" Subject: TVARS Meeting Monday May 9 A TVARS Board special meeting teleconference is scheduled for Monday May 9th at 2:00 p.m. EDT.  Tammy Wilson, Brian Child, and John Hoskins have called for this special meeting to discuss the response from the TVARS Board to TVA’s counterproposal.  A special meeting allows for a vote