State will dip into pension fund, repay with 7.5% interest

State will dip into pension fund, repay with 7.5% interest: "Virginia is taking away more than $620 million that would have been paid toward state employee and teacher pensions, but the state is leaving an IOU. Beginning in 2013, the state will have to repay the money to the Virginia Retirement System over 10 years, with 7.5 percent interest. The provision, sought by the state Senate and included in the joint budget adopted by the General Assembly yesterday, is aimed at easing jitters over the decision to defer state and local payments to pension plans for the portion of future retirement liabilities that aren’t funded by the system."