House Media Division
The House of voted today to enact reforms to the Oklahoma Police Pension and Retirement System that an advocate says will improve its financial condition.
“House Bill 2319 puts the police pension system on a path to be fully funded,” said Rep. Randy McDaniel, R-Oklahoma City. “It requires shared sacrifice and is fair to all groups involved.”
House Bill 2319, by McDaniel, would increase employer and employee contributions to the OPERS system by an additional 1 percent of actual paid base salary for each group. The legislation also increases the percentage of insurance premium tax allocated to OPERS from 14 percent to 15 percent.
The increased contributions from municipal employers would total an additional $2.58 million per year, and the increased employee contribution would also provide an extra $2.58 million annually. The increased share of premium tax would dedicate an additional $1.76 million per year to the system.
McDaniel said House Bill 2319 builds on pension reforms enacted last year that required funding for all future cost-of-living adjustments. That reform reduced the unfunded liability of the Oklahoma Police Pension and Retirement System by $450 million, which improved the system’s funded status from 75 percent funded to 93 percent funded.
The additional funding provided through House Bill 2319 will close the funding gap and expeditiously raise the plan’s funded status to 100 percent, McDaniel said.
McDaniel noted that Oklahoma’s approach to debt stands in stark contrast to other nations and even the federal government.
“Every day we read a new headline about the European debt crisis and resulting protests, but we are taking a different approach,” McDaniel said. “The Oklahoma standard is to bring all parties together and work out an agreement that is fair to all. Under this bill, the system will become debt free. I like the way that sounds.”
The legislation has been endorsed by the Fraternal Order of Police.
“Police officers are vital to every community,” McDaniel said. “They protect people and property. It is time we demonstrate the same commitment.”
The bill passed the House on a bipartisan 87-3 vote. It now proceeds to the Senate.
