Pension System Showing Improvement Due to Reforms

By Jason Doyle Oden
The McCarville Report

The state’s pension system is showing signs of improvement according to the latest reports given to the House Committee on Business, Labor and Retirement Laws. The figures say the financial health of the pension system improved by more than $800 million this year. The unfunded liability has been reduced by $7.3 billion over the past five years.

“The pension reforms are working,” said Rep. Randy McDaniel who serves as committee chairman. “For the many Oklahomans whose retirement benefits rely on the strength and durability of the pension system, the substantial improvement provides more peace of mind and economic security.”

The unfunded pension liability reached $16 billion in 2010. Despite record levels of total contributions, the annual funding gap was growing by more than $500 million.

Since reforms were put into place, billions in savings were produced. Other reforms have helped lower the unfunded liabilities to $8.8 billion this year.

“The recovery is the product of teamwork, leadership and resolve,” McDaniel said. “Without a steadfast commitment for results, the unfunded liability would have continued to climb, causing the future funding needs from the state budget to soar.”

McDaniel indicated he was concerned that lawmakers could be looking at raiding the pension funding to help close an expected budget gap.

“Providing adequate funding is critical,” McDaniel said. “We must be prepared for market corrections and other risks in order to achieve our shared goals of keeping promises, improving the state’s bond rating and protecting the future generations to come.”


Print pagePDF pageEmail page
  1. KINGJAMES, 29 October, 2015

    Congrats to Randy McDaniel and other legislators who have worked tirelessly on this issue. it isn’t sexy but is important to the state’s well being

  2. Chris Biggs, 29 October, 2015

    I know how much hard work has gone into turning this dire situation around. Congratulations!

  3. Randy McDaniel, 29 October, 2015

    Thank you for the positive comments.

  4. Jim McGoodwin, 29 October, 2015

    All those “savings” were made by the simple accounting trick of removing paper obligations (the amount owed for colas that were never required by Oklahoma law) from the books of the retirement systems. That and the recovery of the market were the reason. There were NO real savings.

*

Copyright © The McCarville Report