
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, June 10, 1994                   TAG: 9406170104
SECTION: VIRGINIA                    PAGE: B3   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

GENERAL ASSEMBLY TO CONSIDER SETTLEMENT

RICHMOND - The General Assembly will meet July 6 to consider a proposed $340 million settlement with federal retirees who were taxed illegally, legislative leaders said Thursday.

When the agreement was announced May 31, House of Delegates leaders said they hoped the assembly would consider it within two weeks. But Senate leaders, who were not included in the negotiations with retirees, said they needed more time to study the plan.

A subcommittee of the Senate Finance Committee took its first look at the plan Wednesday. The full Finance Committee meets June 17.

The retirees believe the $340 million will be sufficient to provide full refunds without interest to 186,000 pensioners for taxes they paid between 1985 and 1988.

However, the Senate panel's staff said state tax records indicate that claims could be much higher than $340 million.

The retirees have sought refunds since the U.S. Supreme Court ruled in 1989 that states could not tax federal pensions while exempting the pensions of state and local workers. Most of the 23 states affected by the ruling already have paid refunds.

Virginia faced by far the largest liability. The state would owe more than $700 million if ordered to pay refunds plus interest. The retirees' lawsuit seeking refunds is pending before the Virginia Supreme Court.

|- Associated Press

Keywords:
GENERAL ASSEMBLY 1994

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