(Mid-America Pension Rights Project): Court rejects challenge to TVA pension changes

Via Times Free Press

By Dave Flessner

A federal appellate court has affirmed the legality of cost-of-living cuts and other changes made in 2009 by the Tennessee Valley Authority and its retirement system board to one of the South’s biggest pension plans.

The Sixth Circuit Court of Appeals last week rejected a legal challenge to the pension reductions by beneficiaries of the TVA retirement plan. By a 2-1 vote, the appellate court largely upheld a ruling last year by U.S. District Judge Aleta A. Trauger dismissing claims against the retirement system for making changes in the defined benefit plan that the plaintiffs claimed were done improperly and without proper notice.

The court said TVA has given proper notice and sided with TVA and its retirement system board that future benefit changes in the plan could be made.

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