State and local government workers in Virginia received a generous pension program. The state has repeatedly extended the benefits of retirees in recent years, while guaranteeing workers paid nothing for their retirement.
The recent economic decline in investment portfolio driven by the pension plan of his fall. Today, some state and local fear that the generosity of the pension system can not be sustained.
The investment losses are significant enough that the state may need to pump about $ 400 million more into the system during the next two years. South Hampton Roads cities are also having a beginning, more money during a period where they are, as the state faces budget deficits.
Virginia Beach is a city and 16,000 school employees in the retirement program. Since 2006, the city’s annual payments to the pension system in Virginia jumped nearly a third to $ 107 million last year from 83 million in 2006. The same is true of the Chesapeake Bay has 9,000 employees at the school and the city in the system. VRS payments rose to 57.5 million U.S. dollars last year from 43.6 million in 2006. Both cities expect their contributions to increase again this year.