Va. lawmakers OK gov's pension changes

RICHMOND, Va. (AP) - The General Assembly has accepted Gov. Bob McDonnell's amendments to bills making sweeping changes to the public employee pension system.

The Senate and the House of Delegates on Wednesday approved the governor's proposal to allow cities, counties and towns five years to phase in 5 percent pay raises that teachers and local employees will have to contribute to the underfunded Virginia Retirement System. City and county leaders had asked for the amendment because they were concerned that a large, immediate increase in payroll expenses would force them to raise taxes or cut services.

Both chambers also accepted McDonnell's mostly technical changes to a bill that scales back retirement benefits of public employees with less than five years in the system.