Union members who work for the Tennessee Valley Authority (TVA) are fighting a proposed cut in pension benefits both employees and retirees. TVA officials claim that changes in retirement benefits, which cover more than 33,000 people, are needed to close a funding shortfall. They maintain that if the cuts are not implemented, then the TVA will be forced to raise electric rates in the Tennessee Valley.
Union leaders maintain that TVA officials are “lining their pockets” while forcing “austerity” measures on the workers.
The proposed changes include capping cost-of-living and supplemental benefits, and changing future benefit payments to a 401(k) program.