Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, December 13, 1994 TAG: 9412130083
SECTION: VIRGINIA PAGE: C5 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium
News conferences touting the settlement are scheduled Thursday in Northern Virginia, Norfolk, Richmond and Roanoke even as the state puts notices in the mail telling retirees how much they would get.
The settlement offer amounts to about 87 cents for each dollar the pensioners were illegally taxed.
``We're not twisting their arm, but we're promoting the settlement,'' Rose Musumeci, state president of the National Association of Retired Federal Employees, said Monday.
``It's gone on too long,'' she said. ``A lot of people are tired of waiting. They say if they wait any longer they won't be around to get it.''
Also participating will be the Military Retirees Taxpayers Association.
Not all of the retirees' leaders are joining the events. Some are urging pensioners to think twice about taking the money since the U.S. Supreme Court last week ordered Georgia to pay refunds to federal retirees in a similar case.
``I would hope that people look at it and make some calls and attempt to understand the impact,'' said William Wollenberg of the Retired Officers Association.
``The chances of winning in litigation are better now than they've ever been,'' said Michael Kator, a Washington, D.C., lawyer who helped retirees negotiate the settlement. He contends the Georgia ruling could mean that Virginia retirees are entitled to full refunds with interest.
``I'm getting tons of calls and just about everybody's telling me they're going to go on with the litigation,'' he said.
The settlement would cost the state $351 million over five years. If the state had to pay full refunds plus interest, the cost could exceed $700 million.
Retirees have until Feb. 1 to decide whether to take the money or pursue their claims in court. But if retirees owed a total of more than $20 million reject the settlement, the deal will fall through.
House of Delegates Majority Leader Richard Cranwell, a Roanoke County Democrat who brokered the deal, and other legislators will speak at the events, said Gail Nardi, a spokeswoman for the Democratic legislative caucus. Attorney General Jim Gilmore and Gov. George Allen, both Republicans, have been invited to participate, she said.
Allen has no plans to attend, said his spokeswoman, Melissa Dickie. The attorney general's office was considering the request.
by CNB