ROANOKE TIMES 

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

DATE: FRIDAY, August 5, 1994                   TAG: 9408050072
SECTION: EDITORIAL                    PAGE: A5   EDITION: METRO 
SOURCE: CHARLES L. FALLIS
DATELINE:                                 LENGTH: Medium

MANY ARE DUE THANKS FOR SETTLEMENT

A LETTER to the editor appeared on July 29 in this newspaper entitled ``Give Cranwell credit for retiree deal.'' While factually accurate, the letter, by Oscar J. Honeycutt and Jack Mayer, contained opinions and conclusions not necessarily endorsed or supported by the Virginia Federation of Chapters of the National Association of Retired Federal Employees' current leadership.

Some clarification and elaboration is necessary, in the interest of ensuring that appropriate recognition is given those to whom credit is due. The following remarks are in no way intended to denigrate the important contributions of Cranwell who, throughout this entire episode, has repeatedly demonstrated a strong sense of fairness to all Virginians, including federal retirees.

The culmination of a five-year-long struggle, often bitter and acrimonious, occurred on July 13 when Gov. George Allen signed into law legislation passed nearly unanimously by the General Assembly that, in large measure, will return to federal civilian and military retirees, or their survivors or legal heirs, taxes illegally collected by the state from 1985-1988.

Although approved by VFC/NARFE, the negotiated agreement isn't a great victory for the state or federal retirees. The compromise settlement of $340 million, plus accrued interest on appropriations, gives neither side all it might have hoped for. Nonetheless, VFC/NARFE officials believe that negotiators on both sides achieved, under trying and limiting circumstances, the best deal it was possible to make.

It's important to note that, in the negotiation process, federal retirees - who reasonably might have been expected to hold out for a substantially larger settlement since the actual amount owed them exceeds $700 million - did, as responsible citizens and taxpayers, moderate their demands to accommodate the state's plea of financial hardship.

However, many of our members, who heard the state plead poverty for the past five years as one excuse for not refunding the illegally collected taxes, had their credulity strained by the General Assembly's sudden generosity, partly at federal retirees' own expense, in expanding the legislation to spread tax goodies gratuitously to others who were never illegally taxed.

VFC/NARFE, a nonpartisan organization representing 21,000 federal civilian retirees from across Virginia, wishes to thank members of the Allen administration and state legislators of both political parties who joined in enacting this bipartisan tax-refund legislation. The legislation, despite its imperfections, will provide an additional option to thousands of federal retirees, many who have wearied of this struggle. Without further financial risk, they can choose to settle with the state and put this issue behind them.

We truly appreciate the contributions of all concerned. In addition, we'd like to express our special appreciation to the state's tax commissioner, Danny Payne, and staff members of the Virginia State Tax Department who are charged with the daunting task of implementing this tax-refund legislation.

Charles L. Fallis of Salem is vice president for legislation for the Virginia Federation of Chapters, National Association of Retired Federal Employees. 


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