Virginia Gov. James Gilmore is hoping state lawmakers next week will approve his plan to cut contributions to the Virginia Retirement System by $217.5 million a year to pay for salary increases for school teachers, college faculty members and some other state employees. Mr. Gilmore attached his proposal to a Senate bill on retirement of state teachers. If approved by both legislative chambers, the contribution cut would kick in for the new fiscal year starting July 1.
The governors proposal is similar to a measure that was part of the budget package over which lawmakers were deadlocked last month. Mr. Gilmores proposal comes at a time that the systems total assets declined to $37.5 billion from $42 billion last year. He emphasized that the system is still slightly overfunded.