The Senate Pensions Committee okays legislation to move state employees hired after November 1, 2015 to a defined contribution plan.
This change is only for new state employees, but will keep the promises made to current workers. Sponsors say the defined contribution plan will make Oklahoma better able to attract the next generation of state employees who value portability when it comes to their retirement plans.
Senate Bill 2120 requires an employee to contribute a minimum of 3 percent of their salary up to 7 percent, which will then be matched by a 401 (k)-style plan. Employees designated "Hazardous Duty" are exempted from the bill, including fire and police. Teachers are not included this year.
“We have made great strides in lowering our state’s pension liability, but more must be done,” said Senator Rick Brinkley of Owasso, author of the bill and chairman of the Senate Pensions Committee.
The legislation passed the Senate Pensions Committee now moves to the full Senate for further consideration.