To the Editor:
Re “The Last Pension Domino” (Business Day, March 4):
It is deeply troubling that the Tennessee Valley Authority’s chief executive, William D. Johnson, is declaring war on his employees’ retirement savings while he takes home the highest compensation of any federal employee in the country ($6.4 million, according to your article).
The T.V.A. is a publicly funded institution, doling out multimillion-dollar paychecks to its executives and putting hardworking people’s pensions at risk. The T.V.A. should be focused on providing efficient public services while taking care of all of its employees.
Perhaps most upsetting is the fact that while pension benefits to rank-and-file members will be slashed under Mr. Johnson’s proposal, the Supplemental Executive Retirement Plan that allows him to rake in thousands of extra dollars per year won’t be touched.
A strong public pension system offers greater security for workers by pooling assets and risks between the employer and the employee. This ensures that workers will receive their promised benefits. Meanwhile, 401(k)-style accounts can leave hardworking people with little to no savings upon retirement if their investments do poorly.
Mr. Johnson is pushing a proposal that will leave retirees high and dry and taxpayers’ dollars on the line. In the end, our economy does better when Americans know that they can trust the government to follow through on its promises and allow them to retire with dignity.
BAILEY CHILDERS
Executive Director
National Public Pension Coalition
Washington