Sunday, March 11, 2012

Via Gov. Bob McDonnell Virginia Retirement System reform

This is one item of many Governor Bob McDonnell touted in his press release at 7:11 p.m. Saturday evening. This was before votes took place in the Senate and House.

1129/HB1130/SB 498-Implements numerous reforms to the Virginia Retirement System to permanently reduce future unfunded liabilities and providing stability to the pubic workforce after years of turmoil in their retirement programs. The bi-partisan VRS agreement will create a 5 percent contribution for teachers and other local government employees along with commensurate pay raises for teachers and local government employees, a 1.65 percent multiplier for Plan 2 members for periods of service on or after Jan. 1, 2013, a COLA capped at 3 percent for Plan 2 members, a deferred COLA for early retirees who retire prior to their unreduced retirement date unless they are within five years of that date by Jan. 1, 2013, a 60-month AFC for anyone with less than five years of service as of Jan. 1, 2013, a phase in of a 7 percent rate of return on investments in VRS, and a mandatory hybrid plan that includes general state and local employees, and teachers hired on or after Jan. 1, 2014.

Governor McDonnell’s proposed biennial budget recommends a total of $2.21 billion in employer contributions to state employee and teacher funds by state and local governments – the largest employer contribution to VRS in history. The bills make permanent, important changes to the retirement system.

Posted By Valerie Garner

Categories: Education, Politics, State Politics

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