Oklahoma Senate Bill SB88

Oklahoma 2025 Regular Session

• Introduced: 2/3/25
• Refer: 2/4/25

Caption

Teachers' Retirement System of Oklahoma; allowing Board of Trustees to approve cost-of-living adjustment for certain retirees.

Impact

The implementation of SB88 is expected to create significant changes in how COLAs are managed within the Teachers' Retirement System. As the Board of Trustees can now grant adjustments based on specific financial criteria, the changes aim to enhance the fiscal health of the retirement system, providing more predictable long-term benefits for retirees. However, the bill mandates that adjustments cannot be made if they risk the funded ratio sinking below required levels, thus providing a level of protection for the system's integrity.

Summary

Senate Bill 88 concerns the Teachers' Retirement System of Oklahoma and amends the provisions regarding the Board of Trustees' ability to approve cost-of-living adjustments (COLAs) for certain retirees. Specifically, the bill allows the Board to approve a 2% COLA for beneficiaries who have received benefits for at least one year, contingent upon the System's funded ratio surpassing prescribed thresholds. This measure aims to provide some relief to retirees struggling with inflation while ensuring that the system's financial stability is not compromised.

Contention

Some points of contention arise around the balance between providing necessary financial support to retirees and ensuring that the Teachers' Retirement System remains solvent. Critics may argue that limiting COLA approvals based on funding ratios could lead to prolonged periods without increases, essentially disregarding the rising costs of living that affect many retirees. Conversely, proponents of the bill maintain that this approach is necessary to prevent overextending the system and ultimately jeopardizing the beneficiaries' long-term security.