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TVARS Board Blocks Vote on Financial Reform

I made the following motion at the June 15, 2017 TVA Retirement System (TVARS) Board meeting:

Whereas the TVARS Board wishes to amend its rules and regulations to meet the funding recommendations in the March 2017 GAO Report to Congress, the TVARS Board hereby approves amending the system’s rules and regulations to specify that the annual “accrued liability contribution” be determined using a fixed amortization period of 20 years beginning in fiscal year 2018 instead of the currently specified 30-year rolling amortization period.

I then stated the following in support of the motion:

This amendment would eliminate TVARS’ funding shortfall in 20 years. Per the GAO's report, 15 to 20 years is the maximum period recommended by a Blue Ribbon Panel commissioned by the Society of Actuaries. The GAO report indicates that TVA officials have stated a goal to fully fund the pension within 20 years, but that TVA has not identified such a goal or milestones in its performance plan or report. In contrast to TVA's stated goal, TVA officials told the GAO that TVA does not plan to contribute more than the TVARS Rules require. Without this proposed rule change, today's pension obligations would essentially be passed down to future generations of ratepayers. Current TVARS Rules require the use of a rolling 30-year period. This is analogous to refinancing your house with a new 30 year mortgage every year so that you never have to pay off the loan.

Jim Hovious seconded the motion.

A majority of the TVARS Board then proceeded to block the vote by passing a motion to table our motion. We were unable to guarantee a vote on our motion because our attempts to obtain support from a necessary third TVARS Board member were unsuccessful. Placing an item on the agenda as a voting item requires the support of three board members.


Comments

  1. AnonymousJune 16, 2017 at 10:08 AM

    You can bet they're getting theirs.

    ReplyDelete
  2. Rick TJune 16, 2017 at 3:50 PM

    I cannot understand how anyone on the RS board could vote against fixing the funding… Why would they not approve your motion ? Is it just politics w/ TVA ?

    ReplyDelete

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