Changes to retirement system could be costly for Northumberland schools
Changes in the Virginia Retirement System could cost Northumberland County as much as $650,000 more for its schools in the 2014-15 school year.
“That’s on the high end,” Donna Booth, the school system’s finance officer said Friday. At this point, the figures aren’t definite, but costs will go up.
For one thing, the system, like all others in the state, had been paying an amount equal to 11.66 percent of its employees’ pay into the system.
But starting in fiscal year (FY) 2015, the system will have to pay 14.5 percent. That will rise to 16.5 percent in FY 2016. Employees paid an additional five percent into the fund. In Northumberland County, the schools paid the employee’s share.
—Pick up the January 22 issue of the Northumberland Echo to read the full story!—