OK
Oklahoma Senate Bill SB891

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB891

Introduced
2/1/21  

Caption

Pensions; requiring Teachers' Retirement System to establish defined contribution system for certain persons; providing terms. Effective date.

Impact

The proposed shift from a defined benefit plan to a defined contribution model is expected to significantly alter the landscape of retirement planning for public employees in Oklahoma. Advocates argue that this will not only reduce the financial pressures associated with the existing pension system but also provide employees greater control over their retirement savings. However, this transition has raised concerns among employees and advocates about the potential impacts on retirement security, particularly for those who rely on predictable benefits during retirement.

Summary

Senate Bill 891 requires the Teachers' Retirement System of Oklahoma to establish a defined contribution system for new employees hired on or after November 1, 2022. This bill delineates the eligibility of employees for participation and specifies that those in defined contribution accounts will not accrue service credit in the existing defined benefit system. The measure aims to modernize the benefits structure for state employees and create a more sustainable pension framework, which is particularly significant given ongoing discussions about the financial obligations of defined benefit plans in the state.

Contention

Key points of contention surrounding SB891 include debates over the adequacy of the defined contribution plan in providing retirement security compared to the traditional defined benefit option. Opponents of the bill are concerned that these changes could lead to inequality in retirement outcomes for workers who face varying levels of income instability over their careers. Additionally, fears persist regarding the long-term sustainability of retirement benefits and whether adequate protections will be in place for employees who change jobs or leave public service before fully vesting.

Companion Bills

No companion bills found.

Previously Filed As

OK SB882

Teachers' Retirement System; directing creation of defined contribution system for new members. Effective date.

OK SB882

Teachers' Retirement System; directing creation of defined contribution system for new members. Effective date.

OK HB2854

Public retirement systems; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; accounts; service credit; effective dates.

OK HB2854

Public retirement systems; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; accounts; service credit; effective dates.

OK HB2687

Public retirement systems; Law Enforcement Retirement System; election to participate; members; transfer of contributions and records; credit; effective dates; emergency.

OK SB683

Teacher retirement; modifying requirement for nonclassified optional personnel to join system; specifying procedures to join or opt out of System; specifying certain required contributions be made by certain employees and employers. Effective date. Emergency.

OK HB1805

Public retirement systems; Oklahoma Public Employees Retirement System; definitions; benefit amount; contributions; membership by emergency medical personnel; effective date.

OK HB2378

Public retirement systems; Oklahoma Pension Legislation Actuarial Analysis Act; Teachers’ Retirement System; post-retirement earnings limitation; minimum salary schedule; effective dates.

OK HB1879

Public retirement systems; Oklahoma Pension Legislation Actuarial Analysis Act; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; effective dates.

OK SB1584

Teachers' Retirement System; modifying contributions to be made by University of Oklahoma and its employees; establishing requirements for service credits.

Similar Bills

OK HB2854

Public retirement systems; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; accounts; service credit; effective dates.

OK HB2854

Public retirement systems; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; accounts; service credit; effective dates.

OK HB1258

Public retirement systems; Defined Contribution Retirement Plan for Teachers; Teachers' Retirement System of Oklahoma; defined contribution system; participation; election; service accrual; employee contribution amount; salary deductions; employer matching contributions; costs; vesting schedule; Board of Trustees; investment; deposit; defined benefit plan; offsets; qualified domestic orders; term; alternate payees; restrictions; rules; minimum salary schedule; codification; effective date.

OK SB882

Teachers' Retirement System; directing creation of defined contribution system for new members. Effective date.

OK SB882

Teachers' Retirement System; directing creation of defined contribution system for new members. Effective date.

OK HB1879

Public retirement systems; Oklahoma Pension Legislation Actuarial Analysis Act; Oklahoma Public Employees Retirement System; defined contribution plan; defined benefit plan; effective dates.

OK HB2486

Oklahoma Public Employees Retirement System; increasing employer matching amount; effective date.

OK HB2193

Public retirement systems; cost-of-living increases; Oklahoma Firefighters Pension and Retirement System; Oklahoma Police Pension and Retirement System; Uniform Retirement System for Justices and Judges; Oklahoma Law Enforcement Retirement System; Teachers' Retirement System of Oklahoma; Oklahoma Public Employees Retirement System; codification; effective date.