Oklahoma
State Senate
Communications Division
State Capitol
Oklahoma City, OK 73105
Audio
Clip 
Print
Article
For Immediate Release: March 14, 2006
Sen. Mike Mazzei
Senate Approves Bill to Strengthen Retirement Systems
The
full Senate has given its approval to a measure to strengthen
state retirement systems. Sen. Mike
Mazzei, R-Tulsa, is author of Senate Bill 1894.
While the legislation would apply to the retirement
systems for teachers, public employees and judges, Mazzei
said there’s a particular concern about the Teachers
Retirement System of Oklahoma (OTRS), which is only
49 percent funded.
“Right now OTRS has $7 billion in unfunded liability.
That’s more than our entire state budget for this
year,” Mazzei said. “In addition, the retirement
system for state employees has $2 billion in unfunded
liability. Our state simply cannot afford to put this
issue on the back burner any longer—this really
is a crisis situation.”
SB 1894 includes several reforms, including a requirement
that fiscal retirement bills have an actuarial study.
Furthermore, such bills may be introduced in the first
session of the legislature, but no action can occur
until the second session so that the legislature can
review the actual impact of any proposed changes. The
bill would also require a specific provision for funding
any proposed legislation that fiscally impacts a retirement
system.
“We have made some movement toward improving our
retirement systems, but it isn’t happening fast
enough. We’re going to need an additional $900
million dollars for OTRS over the next nine years just
to get the system to a 60 percent funded level,”
Mazzei explained.
Mazzei said his bill was based on retirement system
reforms that had been approved in Georgia, which has
since seen their funded levels move from 80 to 100 percent.
“Our unfunded liability levels hurt the state
because it causes us to have a lower bond rating, meaning
we pay more for our capital improvement projects. It
may actually be costing us $20 million a year,”
Mazzei said. “But more than that, we’re
also putting the pensions of thousands of teachers at
risk. The subsequent ripple effect through our economy
would be catastrophic. I’m very gratified the
full Senate agrees that we need to address the situation
now, before it’s too late.”
The measure now moves to the House of Representatives
for consideration.
For
more information contact:
Senator Mazzei's Office - (405) 521-5675
