Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 8, 1994 TAG: 9412080048
SECTION: VIRGINIA PAGE: C5 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium
Virginia is offering its federal retirees a settlement totaling $351 million, about 87 cents for each dollar they paid.
``We are not going to be taking that off the table. We're not going to be sweetening the pot,'' Allen told reporters.
If pensioners choose to go to court for more money, he said, they should consider the delays and the costs of attorneys' fees.
``It's up to each retiree to determine what they want to do,'' the governor said.
Allen's comments came after the retirees' lawyer suggested that the pensioners could seek more money from the General Assembly and pursue their case in court.
Michael Kator said the court ruling Tuesday ordering Georgia to pay refunds to its illegally taxed federal retirees shows that Virginia retirees could be entitled to full refunds plus interest. That could double the cost, to more than $700 million.
The state will mail notices to 159,000 federal retirees next week telling them how much they would get under the settlement offer. The pensioners have until Feb. 1 to decide whether to take the money.
The settlement will fall through if the offer is rejected by retirees who are owed a total of more than $20 million. Kator said the Supreme Court ruling makes that likely to happen.
``I certainly understand where the governor is coming from,'' Kator said. ``I'm just concerned that that may be a little shortsighted.''
Allen would not say what he would recommend if the settlement collapses. ``We'll look at that when it comes,'' he said.
by CNB