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

DATE: THURSDAY, July 14, 1994                   TAG: 9407140107
SECTION: VIRGINIA                    PAGE: C-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short

ALLEN SIGNS RETIREE REFUND BILL

Gov. George Allen signed into law Wednesday a bill that will grant refunds to illegally taxed federal retirees, increase pension benefits for state workers and give a tax break to all retirees.

The refunds to federal retirees will cost the state $340 million over five years, with the other provisions costing the treasury hundreds of millions more.

Allen was joined at the bill-signing ceremony by House Majority Leader Richard Cranwell, D-Roanoke County, who crafted the refund deal; Attorney General Jim Gilmore, a Republican; Republican legislators; and leaders of retiree groups.

The General Assembly approved the settlement in a special session last week.

The state Department of Taxation will send refund notices to more than 175,000 federal retirees next month. The retirees must respond by Nov. 1 to qualify for a refund.

State workers will get a 3 percent pension increase, and an income tax deduction for taxpayers age 62 and older no longer will be reduced by the amount of Social Security they receive.

Keywords:
GENERAL ASSEMBLY 1994

by CNB