WASHINGTON -- The Virginia legislature approved a $340 million package Friday designed to settle a long-running dispute with federal retirees whose benefits were illegally taxed in the late 1980s.

The House of Delegates approved the settlement unanimously and the Senate approved it on a 35-to-2 vote. Virginia Gov. George Allen is expected to sign the measure.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.