No More Pension? State Employee Retirement Targeted For Change
With an unfunded liability among Oklahoma's seven major pension systems exceeding $11 billion, several Republican leaders have said changing from a traditional pension to a 401(k)-style retirement account for new state workers will be a top priority during the 2014 legislative session.
The unfunded liability is the amount owed to pensioners beyond what the system currently afford to pay. It has become a growing concern for Gov. Mary Fallin and other state leaders, who say it hinders the state's effort to improve its bond rating.
Under a plan supported by Fallin and state Treasurer Ken Miller, newly hired state workers would no longer enjoy a traditional pension system.
Instead, it would be more like a 401(k) system where the state matches contributions from the employee up to a certain amount.