TVA looks for way to replenish underfunded pension plan
By Dave Flessner, Chattanooga Times Free Press, Tenn. | |
McClatchy-Tribune Information Services |
That was the lowest funding level of any major U.S. electric utility last year. And unlike most pension plans,
"It's like driving your truck around with the gas tank on empty and without any insurance," said
Pitts worked at
"There's no expectation that a plan will be 100 percent funded every year," said Pitts, who authored an article on
"We have a significant underfunding situation," Johnson said during a conference call with industry analysts last month. "We make contributions into the retirement plan every year and we pay the benefit and stick to what is required -- there is no problem with that. There is a concern by me and by our board about the long-term costs of that plan. So we are actively engaged with the TVARs board in trying to discuss whether there are things that we can do over time to make it easier to fund that plan."
The utility put
Those changes, combined with investment earnings on the fund, should help improve its financial status over time,
"
In an interview Friday, Thomas said
With its top triple-AAA bond rating, ability to set its own rates and lack of a bankruptcy option,
"We're a governmental, ongoing identity that is providing a benefit over the long term," Thomas said. "We believe that we're going to pay for the benefits that the employees have earned. We're just working through with the TVARS (TVA Retirement System) board to determine what is the best way to ensure the long-term viability of the plan that is in everybody's interest."
But
A
Overall,
Market meltdown
But when the stock market collapsed during the Great Recession,
By 2009 with its pension fund more than one-third below what actuaries said was needed,
Such changes were approved by the boards of both
New employees at
If an employee contributes at least 6 percent of their base pay, then they will receive a total contribution of
In a summary of the new benefits,
Contact
___
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