Virginia Approves Changes To State Pension System | WAMU 88.5 - American University Radio

WAMU 88.5 : News

Filed Under:

Virginia Approves Changes To State Pension System

Play associated audio
Virginia lawmakers approved a plan that will allow for increased retirement contributions from government employees.
http://www.flickr.com/photos/tonythemisfit/3296828688/
Virginia lawmakers approved a plan that will allow for increased retirement contributions from government employees.

Major changes are in works for the Virginia Retirement System. Despite some objections to a measure requiring local employees to contribute five percent toward their retirement, lawmakers this week supported amendments by Governor Bob McDonnell to fine-tune the plan.

Both the House and Senate passed the amendments overwhelmingly. Senator John Watkins says one big change allows local governments to phase in contributions made by their employees one year at a time, up to five years with an offsetting raise: "We had already included that provision in that same bill for teachers, but had not included it for local government employees."

The new hybrid plan to combine defined benefits and defined contributions for new hires will take affect in 2014. It had mostly technical amendments.

"The primary [amendments] dealt with local governments and the availability of the disability plans and if the employees went on the hybrid plan, and even if the local government had their own disability plans that they would be commensurate in terms of the benefits with state plans," says Watkins.

Another change prevents those who already have an optional retirement plan from joining the hybrid system. Watkins says the law now requires the state to make contributions at VRS Board-recommended rates, which should have been done all along.

WAMU 88.5

Art Beat With Lauren Landau, Oct. 23

You can see a play and hear music made famous by film.

NPR

Why California's Drought-Stressed Fruit May Be Better For You

Is California's severe drought hurting the nutrient content of fruit? No, preliminary data on pomegranates suggest. The fruit may be smaller, but packed with more antioxidants, tests show.
NPR

In North Carolina, Latino Voters Could Decide Tight Senate Race

Latinos make up 9 percent of the state's population and 2 percent of registered voters, and a new poll shows many are undecided. In Charlotte, Michel Martin learns more about their growing influence.
NPR

Mark Zuckerberg Shows Off His Mandarin Chinese Skills

The Facebook co-founder and CEO spoke at Tsinghua University in Beijing for about 30 minutes. In Mandarin. His audience liked it.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.