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Oklahoma House OKs defined contribution pension bill

Oklahoman Published: March 11, 2014
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OKLAHOMA CITY (AP) — The Oklahoma House has passed legislation to replace traditional public employee pension plans with a 401(k)-style retirement plan for many new state workers.

The House passed the measure 57-42 Tuesday and sent it to the state Senate, which has already approved similar legislation.

Under the bill by Republican Rep. Randy McDaniel of Edmond, state workers hired after Nov. 1, 2015, would be shifted from the current defined-benefit pension plan to the 401(k)-style defined-contribution plan. The change would not apply to teachers or public safety employees like police officers and firefighters.

Supporters say the bill will help reduce the estimated $11.6 billion in unfunded liability in the state’s public pension systems. Opponents say eliminating the pension will make saving for retirement riskier for state workers.

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Online:

House Bill 2630: http://bit.ly/1cNCyQv