Retirement Issues

·        Maintain VRS as a defined benefit plan and resist efforts to convert to a defined contribution plan.

·        Oppose:

o       Reductions in benefits to currently retired state employees;

o       Adverse changes to the retirement eligibility of current state employees;

o      Cutting the take-home the pay of current employees by requiring a salary contribution towards the cost of retirement.  Any such effort to have current employees begin paying this cost must be accompanied by a concurrent increase in salary to offset those costs as recommended by the JLARC.

o       Adverse changes to the VRS Deferred Compensation Program (DCP).

·        Support:

o       Requiring newly hired employees to contribute a portion of their salary towards their retirement.

o       Increasing employee salaries by 5% using the VRS employee contribution paid by the Commonwealth AND then requiring employees to pay the 5% VRS employee contribution on a pre-tax basis.  This action will result in employees paying the 5% VRS employee contribution directly without either an increase in taxable income or a loss of current income.

Compensation and Job Security

·        Any cost savings realized in modifications to one area of state employee compensation shall only be used to augment another area of state employee compensation.

·        Oppose:

o       State employee layoffs unless all other options have been exhausted. These options would include elimination of contract workers positions, elimination of overtime except in public safety emergencies, and leaving at-will positions vacant.

·        Support:

o       Reduced work hours (Q status) as an alternative to state employee layoffs;

o       Allowing the use of accrued leave to offset mandatory work hour reductions.

Health Benefits

·        Provide high quality and affordable health insurance to active and retired state employees. 

·        Oppose:

o       Reductions in state support for retiree health care coverage;

o       Increased co-payments or reductions in health care coverage;

o       Efforts to authorize balance billing by medical and dental service providers.  This adds to the health care costs that must be borne by the employee or retiree.

·   Support:

o       Increased emphasis on prevention and wellness programs as a means for reducing future health care costs;

o       Funding of health insurance increases to offset the impact of increases on state employee pay.  When such increases are passed on to employees without a pay increase, they amount to a cut in take home pay.

o       Greater employee involvement in the design and operation of health insurance programs;

o       A debit card for the flexible reimbursement program.