The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, December 17, 1994            TAG: 9412160023
SECTION: FRONT                    PAGE: A12  EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Short :   33 lines

MONEY OWED IN FULL

``Let's end pension fuss'' (editorial, Dec. 9) suggests that federal retirees settle for less than dollar-for-dollar refunds of illegally collected state income taxes. You seem to believe that the United States Supreme Court erred in finding that states collected taxes illegally on federal pensions. The point is moot; your judgment cannot be substituted for the court's.

You imply that the court system is overused, so the illegally taxed pensioners should accept the Allen administration's settlement even though it would not provide justice. Imagine the reaction if a Virginia resident who significantly underpaid his/her state income tax proposed to settle with the commonwealth for 50 (or even 87) cents on the dollar.

I believe that most fellow pensioners would disagree that they can afford to be magnanimous.

You write of a deal made in good faith. This is, at best, misleading since affected pensioners must decide by Feb. 1 whether to accept the proposed settlement amount.

Your sympathy seems to be for the ``beleaguered'' commonwealth.

L. H. TAYLOR JR.

Captain, U.S. Navy (ret.)

Chesapeake, Dec. 11, 1994 by CNB