McDonnell urges Assembly not to allow local government employee pension shift

Gov. Bob McDonnell (R) is slowly releasing more information about amendments to the state's two-year budget that he will recommend to the General Assembly. He announced this afternoon that he will ask the General Assembly to revoke authority it had planned to extend to local governments to shift part of employee retirement payments to the employee.

The state has long required that local governments pay the 5 percent payroll contribution to pension plans for teachers, police officers and sheriff's deputies, matching the state's practice for its employees. The General Assembly this year had agreed to allow local governments to shift some of those costs to their employees.

The shift could have saved money for localities that elected to exercise the new option but would have hit their employees, many of whom are facing pay freezes and furloughs.

Various employee associations had been lobbying McDonnell to remove the authority, and now he's encouraging the General Assembly to do so. (The Richmond Times-Dispatch first reported this amendment before it was announced by the governor's office.)

The Virginia Education Association has released a statement praising McDonnell for the change.

McDonnell also announced this afternoon that he is recommending that the General Assembly boost funding for operation and maintenance of the Wallops Island Space Port by about $700,000 over the next two years.