Virginia Gov. Bob McDonnell on Tuesday defended his proposal to require state employees to pay into their retirement fund for the first time in 27 years.
“We have a system that’s broken,” he said on his monthly appearance on WTOP’s “Ask the Governor” program. “I’m a 22-year vested employee in the state retirement system myself, so any decision I make affects me.”
McDonnell cited nearly $18 billion in unfunded liabilities in state pension plans as the reason for the change. He’s proposing that all employees covered under the state system start paying 5 percent into their defined benefit programs starting in July 2011, to be partially offset by a 3 percent raise at the same time.
“For 27 years, our state employees have had to pay zero — nothing — into the retirement system,” he said. “Virtually no private sector retirement plans have a plan like that where employees pay nothing.”
“I wish I didn’t have to do that, but here’s what I’ve said — I’m not going to pass on this problem to another governor — the system’s broken, it’s heading south, and I’m going to fix it,” he said.
