OKLAHOMA CITY (AP) — The Oklahoma House has approved legislation that eliminates traditional pension benefits for newly hired state workers and replaces it with a 401(k)-style retirement plan.
The House approved the measure 58-33 Tuesday and sent it to the state Senate for final passage.
The measure creates a defined contribution retirement system for state workers after November 2015. Workers hired prior to that time will keep their current defined benefit pension plan.
The measure’s author, Republican Rep. Randy McDaniel of Edmond, says Oklahoma’s pension system has an unfunded liability of $11 billion and that the state spent $823 million last year just to service that debt.
But opponents say the change will place the retirement benefits of state workers at risk by forcing them to invest it.
House Bill 2630: http://bit.ly/1iQbij0