• Lawmakers approve cost of living adjustments for state retirees,
Cost-of-living adjustment bill sent to governor
Oklahoma legislators are asking Gov. Kevin St itt to approve legislation to give most state retirees a cost-ofliving adjustment.
The Oklahoma Senate on Friday passed a bill to give most retirees a pension boost based on a stairstep approach.
The measure now heads to Stitt's desk. It's unclear whether Stitt, who has been vocal this week about protecting the state' s pension systems, will sign the bill.
“We have made great progress shoring up our retirement systems in the last few years,” he said. “Now, is not the time to undo that progress.”
The bill passed the Senate on a vote of 41-5 and passed the House unanimously, which would be sufficient to override a gubernatorial veto.
House Bill 3350 would give a 4% cost-of-living adjustment to former state employees who have been retired for five or more years. Retirees who have been retired for between two and five years will receive a 2% adjustment. Those who have been retired for less than two years will not receive any boost in their pensions.
Roughly 85% of the state's retirees would receive the 4% adjustment. An estimated 113,000 retirees would see some increase in their pension checks.
State retire es haven' t received a cost-of-living adjustment since 2008, and they have been ratcheting up pressure on lawmakers in recent years. State senators, none of whom were in office the last time a COLA was granted, discussed the issue for hours.
“I believe it's time that we move forward to take care of those who served our state,” said Sen. Roger Thompson, who introduced the bill in the Senate.
Legislators, especially those in the Senate, have been hesitant to grant an adjustment because they remember when Oklahoma's pension systems were among the worst funded in the country because lawmakers granted too many pension adjustments.
Far too often, previous
Legislatures would boost retire es' pensions when election years came around, said Sen. Gary Stanislawski, R-Tulsa. Despite asking tough questions about whether this adjustment would be funded, Stanislawski voted in favor of the measure. All members of the House and half the Senate are up for reelection this year.
In his last term in the Senate, Stanislawski joked he would come back and haunt his former colleagues if they don't get serious about pension reform to ensure the state is able to continue funding retirees' pensions.
Growing emotional at times, Sen. Marty Quinn, R-Clare more, said the Legislature has been stuck paying for the sins of previous administrations to the tune of $5.6 billion — roughly the amount of direct contributions appropriated to improve the health of the state's pension systems.
“Why are we taking the same destructive financial path of previous administrations? You know what I' m talking about,” he said.
Quinn also criticized t he system that he says gives preferential treatment to government workers over average taxpayers.
Citing growing health insurance costs and inflation increasing more than 20% in the past 12 years, Sen. Darrell Weaver, R-Moore, said he's not willing to vote for frequent pension increases. But it' s about balance, he said.
“I'm sometimes troubled when this building jerks too fast,” he said. “There's an illusion maybe today that there's been COLA after COLA after COLA recently, when in reality, that has not happened.”
The Oklahoma Public Employees Association applauded the Legislature for supporting the pension boost.
Pointing to ana ctu aria lana ly si sofa proposed cost-of-living adjustment performed last year, Executive Director Sterling Zearley said the increase can be granted without jeopardizing future pension payments.
“Retired and active state employees appreciate the work by House and Senate members to pass this bill out of the Legislature,” he said in a statement. “Those who voted yes on the measure know that it will help thousands of retired state employees, educators and other public servants and will pump much-needed money into local economies.”
The increases are expected to have a $767 million lifetime impact on the state's pension systems. The state has seven pension systems.