ROANOKE TIMES 
                      Copyright (c) 1997, Roanoke Times

DATE: Saturday, March 29, 1997               TAG: 9703310065
SECTION: VIRGINIA                 PAGE: C-3  EDITION: METRO 
DATELINE: RICHMOND

CHECKS WILL GO OUT MONDAY TO FEDERAL RETIREES WHO ACCEPTED STATE'S OFFER DISPUTE AROSE OVER TAXATION OF PENSIONS

Since March 1995, 321,562 checks totaling about $188 million will have been mailed to federal retirees.

The Virginia Department of Taxation on Monday will mail 71,512 checks with a value of approximately $62.6 million as the third payment to federal retirees.

The checks will go to those who accepted the commonwealth's offer to settle claims from a dispute over taxation of federal pensions. Retirees who accepted the settlement are being paid 76.5 percent of the amount they overpaid in 1985-88.

Some 154,000 federal retirees are participating in the settlement program. Since March 1995, 321,562 checks with a total value of about $188 million will have been mailed to federal retirees under the program.

The settlement provided for retirees to be paid annually over a five-year period. The first checks were issued March 31, 1995; the last checks will be mailed March 31, 1999. Under the settlement terms, one-half of each year's appropriation must be used to fully pay as many claims as possible. The 21,022 retirees whose settlement amount was not greater than $2,282.46 will be paid in full this year.

Questions? Call (800) 730-8730.

-STAFF REPORT

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