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Posted: Apr 12, 2019 2:01 PMUpdated: Apr 12, 2019 2:06 PM

Retiree Cost of Living Increase Stalls in the Senate

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Garrett Giles

A House-backed plan to give Oklahoma's public pensioners a 4-percent cost of living increase has been delayed in the Senate.

The Senate Committee on Retirement and Insurance voted 7-1 on Thursday to have an actuary study the impact of a 2-percent raise on the state's six pension systems. Bartlesville's Senator Julie Daniels said Friday an actuary study with any proposed COLA increase is required by law.

In 2010, Republicans started shoring up the pension funds. Sen. Daniels said COLAs had been granted out of the funds themselves, which stunted the growth of the funds. The funds liability then began to increase and affected other portions of State Government that help boost the economy and generate revenue.

Sen. Daniels said the 9 year total going into the funds since 2010 is approximately 2.87-billion dollars. She said this is how much has been put in to get the funds back to a place where they could meet their liabilities.

If you begin to grant a COLA out of the fund balance itself, you erode the balance and the liability spikes upward. Sen. Daniels said the only responsible way to keep funding a COLA would be to keep putting money into the retirement funds to get the percentages up while looking for additional funds outside of that to grant a COLA.

According to Sen. Daniels, there is a bit of a philosophical difference between the House and Senate at the moment. She said despite that mini difference, they need to follow the law they have in place and do the actuary study.

The actuarial report should be completed by December. Lawmakers would then be able to consider whether to approve a cost-of-living increase next session.


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