Congressmen Cohen: TVA Pension Cuts Should be Equal for Workers and Executives

Statement

Congressman Steve Cohen (TN-09) today sent a letter to Tennessee Valley Authority (TVA) President and CEO Bill Johnson highlighting the inequalities in the TVA's proposed pension cuts for its workers and executives.

"It is important that workers and executives at the Tennessee Valley Authority are subject to the same pension cuts for equity," said Congressman Cohen. "Not only is it fair but it is ethically and morally right. By not subjecting all executive compensation to a reduction the message that's sent, intended or not, is that executives are valued more than the workers and retirees. That is bad for team morale."

Last week, the Tennessee Valley Authority Retirement System board approved a proposal to reduce the pension benefits for employees hired in the past 20 years then shift those employees from a plan that guarantees a fixed level of benefits to a 401(k) plan for future benefit payments. TVA executives receive a supplemental executive retirement plan (SERP) which is not subject to the same cuts as other TVA workers.

TVA President and CEO Bill Johnson's total compensation in 2015 was approximately $6.4 million, the highest of any federal employee in the country. Other executives at the TVA have similarly high salaries and pensions.

Source