Northam to spend $100 million to reduce teacher retirement liabilities

Gov. Ralph Northam is proposing a new way to help local school divisions in Virginia by using $100 million in state cash to reduce retirement and health care liabilities for teachers.

In the revised budget he will present to General Assembly money committees on Wednesday, Northam will propose to pay off a $61.3 million debt that the state incurred 10 years ago when it deferred contributions to the teacher pension plan to help balance the state budget after the Great Recession.

The governor also will use $38.7 million in one-time money to pay down unfunded liabilities for teacher and state employee retirement health credits and other post-employment benefits.

The proposed actions will save the state an estimated $24.5 million in payments from its general fund and about $37 million for local governments, which pay two-thirds of the cost of pension and other retiree benefits for teachers.

Read more: https://heraldcourier.com/news/state-and-regional/govt-and-politics/northam-to-spend-100-million-to-reduce-teacher-retirement-liabilities/article_24c35e37-06da-5ec1-89d8-2cb3ccea7955.html
(Bristol Herald Courier)