The Virginian-Pilot
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An influential lawmaker has proposed major changes to the Virginia Retirement System, most of which would drastically reduce retirement benefits for new state and local employees.
The bill, proposed by Del. Lacey Putney, the Bedford independent and House Appropriations Committee chairman, would require new government employees to pay 5 percent of their salaries toward retirement benefits. State employees have paid nothing toward those benefits since 1983. The bill also would reduce the cost-of-living adjustment for employees, reduce a pension multiplier used to calculate retirement pay and change the minimum age and service requirements for retirement.
All of Putney's proposals would reduce payment amounts from the state’s pension program for new employees. At the same time, the proposals are meant to ensure the retirement program’s long-term sustainability and bring it more in line with other states’ programs, Putney said.
Current employees would not be affected under Putney’s proposals.
Separately, former Gov. Timothy M. Kaine proposed a budget in December requiring current state employees to contribute 1 percent of their salaries toward their pensions next year and 2 percent the following year. Gov. Bob McDonnell has said he is against requiring current employees to pay toward their retirement benefits.
Putney has had a significant role in shaping the retirement system since he joined the House in the 1960s. Del. Chris Jones, R-Suffolk, and Del. Johnny Joannou, D-Portsmouth, are both listed as patrons of the bill.
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well
Plain and simple.... do not see how the state could do it any other way...especially when people are desperate for jobs
What?
What does taking the first step in destroying the pensions of State Workers have to do with creating jobs?
This is just the first step in the assault.
After the wealth oligarchy gets done with whittling and eroding the system down after a few years or a decade, employees that retire after a lifetime of public service to the Commonwealth, won't even be able to afford to live here. Maybe we can learn a lesson from the hispanic community and have an economic mass migration south to Chapala when we retire (If we can still get around when were 80 years old).
The general assembly calls the compensation state workers receive, benefits in lieu of pay. As they cut benefits (such as state funded pensions) they almost never raise wages to cover the ever increasing costs of living. State workers work for less and less each year. With no real voice to represent them because they are banned from collective bargaining. Virginia is one of only two backwards worker opressive states which still permit this.
IF IT IS SO BAD
why not find another job? What's stopping you? That's what I thought.
Go to private accounts
They should go to private retirement accounts. They don't go billions into negative net value when bad economic times hit.
Proposed bill to alter retirement benefits
I am sick and tired of legislators sticking it to state employees to balance budgets. I have been a state employee almost 30 years and my salary has been frozen at least 10 years of that while governors spent millions to build prisons we didn't need or to end the car tax which is partially what crippled this state. They have consistently reduced our health care benefits and increased co-pays. Now they want more. What they are doing is forcing good employees out of the system to the point where the state workforce will not be able to keep any good employees. I would like to know if they are going to apply these same standards to themselves. They need to change the requirements for themselves to require 30 years of service before they are eligible for full retirement and make it illegal for themselves to make these sweetheart deals like several have been caught doing lately. That would save the state millions. Unfortunately that will never happen.
Are you really reading this? Do you understand?
Here's a quote from the article for you to read again,"Putney has had a significant role in shaping the retirement system since he joined the House in the 1960s. Del. Chris Jones, R-Suffolk, and Del. Johnny Joannou, D-Portsmouth, are both listed as patrons of the bill." Okay, NOW do you SEE it? Putney "JOINED" the House in the 1960's!!! Now look at the other names that are monopolizing the seats of public trust. Do you think they know what YOUR concerns are? Do you think they know the needs of YOUR COMMUNITY? Jones has gone un-opposed for how many terms? It's time to get rid of lifetime politicians on all levels of government and invoke TERM LIMITS so we can go back to CITIZEN POLITICIANS the way our forefathers planned our government to be. State employees earn less than the private sector but accept the lower pay for better benefits and job security. Is the state employees pensions paid through a trust fund that the state government can't get to the way the federal governments Civil Service Retirement fund was (notice fed politicians still in system) If so is this a ploy of the corrupt state politicians to get their hands on the funds for their pet/personal programs? If you lower
How was he to know that
How was he to know that people would routinely start living on pensions longer than they actually worked? Life expectancy for all races and sexes was seven years more in 2005 than it was in 1970. Instead of collecting benefits for ten years, it's almost twice that now.
By the way
I didn't know you "joined" the House, I thought you were elected to the House. It's almost like the "Good Ole Boy's Club". Cut state workers benefits and you'll have to increase the pay to get anyone to work for the state.
End age discrimination in the workplace now!
Do away with all pensions and keep employees working till they die.
Good for taxes. Good for debt collectors. Good for business. All hail the oligarchy.
On a side note:
Supreme Court rolls back campaign cash limits
Decision would allow corporations, unions to fund campaign ads AP.
Best government that money can buy.