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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

posted Apr 22, 2010, 12:26 PM by Unknown user

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.
The budget provision would have given localities the option to mandate employees put up to 5 percent of their pay toward the retirement system, a cost now borne by the cash-strapped counties.

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FCTA Analysis:  Time for Virginia State Government Employees to Contribute to the VRS System

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)
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