McDonnell: State Workers Should Pay into Pensions
Bloomberg reports:
RICHMOND, Va. (AP) — Gov. Bob McDonnell is asking Virginia government workers to pay into the state's underfunded pension system for the first time in 27 years.
McDonnell will recommend to legislative budget writers Friday that employees covered by the Virginia Retirement System contribute 5 percent of their pretax salaries toward their pensions starting next year.
That would more than negate a proposed 3 percent pay raise for 2011 — the first for state workers in four years — and effectively reduce take-home pay by 2 percent.
At the same time, the state will increase its contribution into the state-supported pension plans by about 4 percent,
The move affects about 87,000 state employees and as many as 130,000 local public school teachers. The state began paying its employees' 5 percent share to the retirement fund in 1983, a concession workers got that year instead of pay raises. McDonnell's plan effectively ends that.
