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For Immediate Release:
May 24, 2006
Senator Mike Mazzei
Senate Gives Final Approval to Bill Strengthening Retirement Systems
Sen. Mike Mazzei said he was extremely gratified that
the full Senate had given unanimous approval to his bill strengthening
retirement systems for teachers, public employees and judges. Mazzei
said Senate Bill 1894 was designed to “stop the bleeding”
before it is too late.
“Right now we have a total of $10 billion in unfunded liabilities,
with $7 billion of that in the Teachers Retirement System of Oklahoma
(OTRS),” said Mazzei, R-Tulsa. “Without the safeguards
contained in SB 1894, we are putting the pensions of thousands of
teachers and public employees at risk, as well as the economy of
the entire state.”
The reforms contained in SB 1894 include mandating that fiscal retirement
bills have an actuarial study. It also requires such bills to be
introduced in the first session of the legislature with no action
actually occurring until the second session.
“This would allow the legislature to review the actual impact
of any proposed changes,” Mazzei said. “The bill would
also require the legislature to provide funding for any legislation
that has a fiscal impact on a retirement system.”
Mazzei said the provisions in SB 1894 were based on retirement systems
reforms adopted by Georgia, which has since seen its funded levels
move from 80 to 100 percent. He noted that OTRS is currently only
49 percent funded.
“The unfunded liability hurts the state because the result
is a lower bond rating which forces us to pay more for capital improvement
projects—as much as $20 million more a year,” said Mazzei.
“But I am very optimistic that we’re on the right track
with these reforms and can turn the situation around.”
Mazzei expressed thanks to Rep. Chris Benge, R-Tulsa, and Rep. Young,
R-Yukon, for their work on the bill. The bill now moves back to
the House for final approval before being sent to the Governor for
his signature.
For more information, contact:
Senator Mazzei's Office: (405) 521-5675
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