Pension measures signed into law by Oklahoma governor

An bill requiring legislators to provide funding for cost-of-living adjustments to Oklahoma’s pension plans is intended to reduce the pension system’s $16.5 billion unfunded liability by $5 billion. It was among five pension bills signed Tuesday by Gov. Mary Fallin.

BY MICHAEL MCNUTT | Published: May 11, 2011 Comment on this article

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Gov. Mary Fallin signed five bills Tuesday that are intended to shore up the state’s underfunded pension systems.

One measure would reduce the state’s seven pension systems’ $16.5 billion unfunded liability by about one third.

Three measures increase the retirement age for judges, school teachers and elected officials and public employees.

The increase in age applies to teachers and public employees hired after Nov. 1 and to public officials elected to office after that date.

“We can’t keep allowing these systems to go deeper and deeper into debt without serious consequences,” Fallin said.

“By beginning the reform process today, we are helping to ensure that we don’t one day face a crisis scenario where the state is simply unable to deliver on the benefits we’ve promised our retired workers.”

House Bill 2132 would reduce unfunded liability in state pensions by $5 billion by requiring the Legislature to provide a funding source for cost of living adjustments to pension plans.

“We can’t promise to increase pension payments without identifying where that money is coming from,” Fallin said.

“That’s the sort of behavior that put the state of Oklahoma $16 billion in the red when it comes to our pension systems.

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