Gov. Mary Fallin has vetoed a bill that would have given state workers the option of enrolling in a defined contribution retirement plan similar to a 401(k).
The bill by Oklahoma City Republican Rep. Randy McDaniel that Fallin vetoed Friday would have allowed state employees hired after July 2014 to choose between a defined contribution option and the current defined benefit system. The bill was approved earlier this week by the House on a 72-20 vote.
Democrats in the House argued the bill would increase the risk involved in state workers' retirement years.
Fallin said in a veto statement that the bill would do little to reduce the unfunded status of the state's pension plans. She added that she looks forward to working with lawmakers during the interim to "create true pension reform" that will ensure the state maintains a high bond rating.