U.S. Rep. Steve Cohen (D-Tennessee) has written an open letter to Tennessee Valley Authority President Bill Johnson protesting proposed pension cuts.
The corporation's retirement system board recently voted to reduce those benefits for employees hired in the last 20 years, then shift them from a fixed level of benefits to a 401(k) plan for further payments.
TVA spokesman Jim Hopson says the board is currently reviewing a counterproposal sent to management last week.
“The TVA Retirement System has experienced a series of losses, primarily due to market conditions as well as actuarial changes that places it in a position of being underfunded,” Hopson said.
In a recent financial report, TVA revealed $6 billion in unfunded pension liability.
Executives draw benefits from the general pension fund, but are also under a supplemental plan that isn’t subject to those reductions. In the letter, Cohen says that disparity sends an unfair message.