OK
Oklahoma Senate Bill SB882

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB882

Introduced
2/6/23  

Caption

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

Impact

The enactment of this bill is expected to fundamentally transform the retirement landscape for Oklahoma teachers. By introducing a defined contribution system, the bill allows new members more control over their retirement savings and investment choices. Participants will have options to invest in various plans, such as a Roth individual retirement account, thereby enhancing their financial flexibility and potential for retirement growth. However, existing members of the Teachers' Retirement System will not be affected by these changes, thus safeguarding their current benefits.

Summary

Senate Bill 882 is a significant piece of legislation that directs the establishment of a defined contribution system for newly employed members of the Teachers' Retirement System of Oklahoma starting from July 1, 2024. The bill stipulates that individuals employed on or after this date will contribute to a defined contribution plan instead of accruing service credit in the existing defined benefit system. This change aims to modernize the retirement options available to educators and align them with contemporary retirement planning practices.

Contention

While SB882 aims to provide new employees with beneficial retirement options, it has sparked debate concerning its implications for existing pension structures. Proponents argue that a defined contribution system is more sustainable and provides better individual investment opportunities, aligning with trends in employee benefits across various sectors. Conversely, critics express concerns that transitioning to a defined contribution model could weaken long-term financial security for teachers, especially in a profession often marked by lower overall wages. This transition raises questions about the public sector's responsibility to provide adequate retirement benefits in light of the state's ongoing fiscal challenges.

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 SB891

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

OK HB2687

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

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 HB1805

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

OK HB3807

Retirement; members; Oklahoma Law Enforcement Retirement System; contributions; definitions; term; codification; emergency.

OK HB2755

Retirement; Teachers' Retirement System; members; credit; service; effective date.

OK HB2755

Retirement; Teachers' Retirement System; members; credit; service; effective date.

OK HB2592

Retirement; Oklahoma Law Enforcement Retirement System; definition; Oklahoma Public Employees Retirement System; definition; members; retirement benefit; death; employee contributions; effective date.

Similar Bills

OK SB891

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