Senate Approves Bill to Shore up Teachers’ Retirement System

A measure designed to strengthen the Teachers’ Retirement System of Oklahoma (TRS) has won full approval from the State Senate. Sen. Mike Mazzei is the author of the bill which would substantially improve the funded liability ratio of the system over the next 20 years.

SB 1119 was approved unanimously on Tuesday. That measure would raise the dedicated stream of revenue from income and sales tax collections to pour additional money into TRS.

“SB 1119 would take the dedicated level from 4.5 percent to 6.5 percent by fiscal year 2011. That will pour an additional $27 million a year for each half a percent incremental increase,” said Mazzei, R-Tulsa. “Over time, that additional infusion will get the teacher retirement system up to an 80 to 81 percent funded level in about 18 years.”

Mazzei said decreasing the unfunded liability in the Teachers’ Retirement System is critical to ensuring that Oklahoma educators will get the pensions they are counting on. He also said it was of vital importance to the future of the state’s economy.

“It would be devastating to our state if we did not fulfill that promise—for the individual teachers and for our entire economy,” Mazzei said. “This is one of several options I’ve proposed this session to help make sure we avert that disaster.”

SB 1119 now moves to the House of Representatives for further consideration.