Monday, February 10, 2014
OKLAHOMA CITY - Governor Mary Fallin today thanked the Senate Pension Committee for quickly advancing Senate Bill 2120, a pension reform bill. The bill moves new state employees from a defined benefit plan to the 401k style, defined contribution plans being widely used in the private sector. The law does not cover employees designated “hazardous duty” – including firefighters and police officers—or teachers. It does not change the pension system for current employees or retirees.
“Moving to the more modern, 401K-style model helps state government to accomplish two important goals,” said Fallin. “First, it helps us to recruit qualified new hires by providing more flexible, versatile retirement options. Under this bill, state employees looking to change careers would have the option of taking their retirement money with them, rather than being locked into a mid-20th century pension system.
“Second, it helps to stabilize the pension system for current public employees. Oklahoma pension systems currently have $11 billion in unfunded liabilities. The system as it stands today is not financially sound. It’s important we shore up our pension systems so we can pay out the benefits we have promised to our retirees.”
SB 2120 was authored by Sen. Rick Brinkley.