Virginia Gov. Bob McDonnell proposed Thursday that all state employees begin paying into the state’s retirement system starting in July 2011, the first time workers would be required to do so since 1983. Virginia’s Joint Legislative Audit and Review Commission this week told state lawmakers that all state-supported retirement plans were short a total of $17.6 billion.
| Gov. McDonnell’s plan |
| Other elements of the governor’s proposal include: |
| • Provide a one-time bonus to all state employees of up to 2 percent in December 2011 |
| • No changes in health insurance premiums or benefits for state employees |
| • Reduce the employer contribution for optional retirement plans from 10.4 percent to 8.5 percent for employees hired before July 1, 2010. |
McDonnell said on a conference call with reporters that he was determined not to pass the problem on to future governors.
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