THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, December 22, 1994 TAG: 9412220580
SECTION: LOCAL PAGE: B2 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Short : 33 lines
Complying with a state mandate, the City Council unanimously agreed Wednesday to increase benefits for all city retirees by 3 percent.
But rather than drawing from the general fund, the council decided to require that each city department fund the increase for its own retirees. The council has said it will give the departments no extra money for the raise.
In July, the General Assembly approved a 3 percent benefits increase for state retirees. It also called for a 3 percent increase for all city employees covered under the Virginia Retirement System. But rather than funding the increase, the Assembly gave cities the option of approving and paying for it.
For Suffolk city departments, the increase in benefits will cost a total of about $113,000 a year. In addition, the School Board will pay about $60,000, and constitutional offices - such as the commonwealth's attorney's office and the Sheriff's Department - will pay $13,000 to $15,000.
The benefits increase will be funded ``without any loss of service or increase to the taxpayer,'' City Manager Myles E. Standish said after Wednesday's meeting. ``Any costs that result from this will be funded by the individual city departments.''
The increase will take effect in July 1996 but will be retroactive to Oct. 1, 1994. by CNB