House Bill 2630 creates a defined-contribution system based off of models used in the private sector for new employees who are part of the Oklahoma Public Retirement System (OPERS). It passed out of the house today and now goes to the senate for consideration. Current OPERS employees and retirees will remain under the old system. If signed into law, the defined-contribution system would take effect November 1, 2015.
OPEA believes that the changes to the OPERS system must not adversely impact current state employees or retirees. Oklahomans must be certain that with these changes there is still enough money available to fund the pensions of those who have earned them through years of service. Regardless of the type of pension, state employees’ salaries must improve so they have the resources to care for their families today and plan for retirement tomorrow. Consistent with the 2013 state employee compensation study findings, Oklahoma must improve low pay before making any adjustments to current employees’ benefits.”
It requires new OPERS employees to contribute a minimum of 3 percent to their retirement, and the state would match the employees’ contributions up to 7 percent. It does not include employees designated by the Department of Corrections as ‘hazardous duty’.
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