Source: Washington Examiner 14 April 2010
Virginia Gov. Bob McDonnell on Tuesday formally opposed letting local governments force police, teachers and other workers to foot part of the bill for their own pensions, responding to a lobbying campaign by public employee groups who said the change amounted to a pay cut.
Most people living in Virginia do not know that Virginia State government employees do not contribute into the VRS. Virginia employs approximately 100,000 people and is the largest employer in the Richmond region with nearly 26,000 employees.
The State is expecting a $1.35 billion shortfall in fiscal year 2010. The VRS funds approximately 600,000 participants. Currently, the State, as an employer contributes 6.26% of each worker’s annual salary into the VRS.
The percentage of the state’s employer contribution varies every budget cycle. It is calculated based on actuarial studies of how much money is needed to keep the plan adequately funded. In addition, the State contributes 5% for the employee share of the worker’s annual salary. In other words, the State pays both the employer and employee share of their retirement without the employee contributing one penny! (Read More)