MLGW Increases Pension Contribution by $11 million
Memphisshelbyinform is determined to keep the public informed about local public pensions, OPEB (retiree health care and life insurance) and public employee benefits. This is a big job, but here is some information about the MLGW pension system.
- The valuation summary for the year ending January 1, 2009 states that due to market losses, the MLGW (read that as you, the rate payer) will have to kick in an extra $17 million dollars.
- This was later reduced to an extra $11 million as shown on the MLGW minutes.
- The MLGW pension rules allow a pension to go to 82.5% of final average earnings at, in this case, an age of 55 years. (See several examples of this in the MLGW minutes) This early retirement age and the high percentage of the highest one year salary earnings are several of the big high cost factors of public pension systems. NOTE: The pension rules concerning the normal three year average earnings were changed in March 2005 in certain cases to the highest two year or one year earnings and contributed to this high pension cost.
What does this mean to you the rate payer? It means a continued high cost of MLGW rates. The higher contribution for the pension plan shown above also shows the vulnerability and potential liability of our pension systems to market forces over which we have no control. Remember this is a legally enforceable obligation of Memphis and Shelby County rate payers enforceable through your utility bills.
Shelby County is now looking at a proposed new pension system which, hopefully, will be at a lower cost. Joe Saino is on that review group. As far as we know, MLGW and the City of Memphis are not doing a similar review. We will keep you informed.
Keep in mind MLGW employees contribute to this retirement fund as well as the fact that MLGW does not pay Social Security taxes and employees are not eligible for Social Security for the MLGW earnings.
I have lived in Memphis for around 8 years. Since 2009 my electric bill has skyrocketed. Case in point, since late July -Aug I kept my windows open because I did not want another $400 dollar bill. We make sure lights /computers/televisions are turned off when not in use. My bill for that month was still a whopping $368 dollars. This month , my bill with my windows still open, was $278. I am confused when it comes to the amount we are charged each month. Our home is a two story. My parents home is in Nashville and twice as big/plus a mother-in-law suite over a separate garage/plus a pool and the most their electricity bill has ever been was $300. I am still stumped on how that is remotely possible other than MGLW screwing its customers.
I have watched in the past couple months MGLW working on utilities. If that is what you call work. Passing them while they are standing or sitting on the edge of the “work” site watching water flow freely from a fire hydrant. Not once, not twice , but three times.
As someone else stated that MGLW customers do not get much of a grace period on paying before being charged. Now I have been late on a bill before but never received a “cut-off” notice. But when I did call to pay the bill I have noticed that they have changed what amount they want you to pay. I just have recently noticed something on my bill stating I have 0 credits for late fee?
This year alone when there is a storm , wind blows, the dog across the street sneezes the entire neighborhood is left without power. Not just for a few hours but for 12+ hours. The past two times alone one was for 14 hours and the next one was 23 hours. In the middle of the hottest time of the year no doubt.
I have been told that MGLW is aware of the problems but that is just hearsay from a former MGLW employee. When my husband went to Iraq we had some really bad storms in 2009 if I recall correctly. Well lightening struck and power went out. When my power came back on 12+ hours later I had lost a washer, two air conditioning units, a computer , and my Comcast converter. All of these were fried. Could be bad luck but then again I asked one of the repair men who came to fix the air conditioning units if it could have been from a surge. He had stated that it very well could have been because the panels inside the units were blown. One of which had been replaced just a few years ago. When I called MGLW the customer service lady didn’t offer any help. I didn’t think she would but it would have been nice for her to have been a little less hostile and a little more compassionate. She was just rude and stated that I have to pay someone to come out to check to see if it was their mistake . After being treated rudely I told her that on top of me losing a washer , a computer, two air conditioning units outside, and cable box I have to come up with more money to pay to prove it was their fault. She then proceeded to tell me surge protectors could have helped. It was hilarious looking back on it. Btw I have and have surge protectors on all my tvs/computers. But I don’t know how to quite put one on the air conditioning units outside my home or on the washer.
Sorry for rambling. Looking back at this and I do laugh but being treated like I was not worth any time to hear my concerns bothered me. I continue to pay my extremely high MGLW bill every month with many expletives as I am paying by phone or check lol. Keep reporting to us and thanks!!!