Del. S. Chris Jones (R-Suffolk) addressed the House this morning to clarify confusion about Virginia Retirement System (VRS) reform in the House budget.
House-passed VRS Reform and Budget legislation strikes former Gov. Kaine’s proposal to require current state employees to contribute 1% in 2011 and 2% in 2012 to VRS, keeping the promise to state employees that the state will cover the 5% employee share of their VRS contributions. For new employees, hired after July 1, 2010, they will be responsible for their own 5% employee share of contributions.
The budget continues the longstanding practice of allowing localities to decide how much, if any, of their employees’ share to cover. Former Gov. Kaine’s proposal had confused the issue. The House language makes clear that the existing law would still apply. This provision was included at the request of school superintendents and local officials to give them maximum flexibility in managing their budgets.