AP: Kaine to propose cut to pension plan contribution

Tomorrow,  Governor Tim Kaine is scheduled to release his budget plan and bits and pieces of what he may propose are leaking out. Tax increases and major cuts are on the table. Tonight, the AP’s Bob Lewis is reporting the first big bombshell, that Governor is set to propose that the state cut its contribution to employee  pension plans.

Here is the full story:

AP-VA–Kaine-Budget,0118

By BOB LEWIS
AP Political Writer
RICHMOND, Va. (AP) – The austere budget Gov. Tim Kaine plans to submit will, among other things, scale back the share state government contributes to state employee retirement plans.

A state official familiar with some portions of what Kaine will present said that for the first time in nearly 30 years, the state will no longer cover the full 5 percent employees’ contribution to their pension plans.

The official was not authorized to pre-empt the governor’s address to legislative budget committees on Friday. Since the early 1980s, the state has paid its employees 5 percent retirement contribution. Kaine will propose decreasing that to 4 percent starting next July 1, then to 3 percent on July 1,
2011.

(Copyright 2009 by The Associated Press. All Rights Reserved.)