Legislators to discuss market analysis of future COLAs for state pensioners

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  • Market analysis of future cost-of-living allowances (COLA)
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OKLAHOMA CITY – In the wake of a long-sought increase this year in state pensions, an interim legislative study in the Oklahoma House of Representatives will focus on a market analysis of future cost-of-living allowances (COLAs) for state retirees.

Gov. Kevin Stitt signed House Bill 3350, which authorized a COLA of 2% to 4% for more than 100,000 retired state employees, teachers, judges and justices, firefighters, police officers, and other law enforcement officers such as the Oklahoma Highway Patrol.

With Stitt’s signature on the bill May 21, the pension increase – the first in 12 years – went into effect July 1.

Former state employees who have been retired for more than five years on that date received a 4% boost in their pensions. Those who have been retired for two to five years on July 1 realized a 2% increase in their benefit. Former state employees who have been retired for less than two years did not get a pension increase.

Principal authors of HB 3350 were Rep. Avery Frix, R-Muskogee, and Sen. Roger Thompson, R-Okemah. Co-authors included Reps. Trey Caldwell and Daniel Pae, both R-Lawton; Rep. David Perryman, D-Chickasha; and Sen. Chris Kidd, R-Waurika.

The bill cleared the Legislature overwhelmingly: 99-0 in the House of Representatives, 41-5 in the Senate. The COLAs are projected to have a $776 million lifetime impact on the six affected pension systems, according to a fiscal analysis prepared for the Legislature. 

Oklahoma’s state pension systems cover more than 296,000 active and retired state and municipal employees, spouses, disabled members, plus inactive vested and non-vested members.

The interim study, which was proposed by Frix, was assigned to the House Committee on Banking, Financial Services and Pensions. Members of that panel include Reps. Charles Ortega, R-Altus, and David Perryman, D-Chickasha.

Each study in the House will be allocated four hours for a hearing. Speaker Charles McCall said the studies must be held sometime between Aug. 4 and Oct. 29.

Editor’s note: Mike Ray is a state government retiree who worked for the Oklahoma House of Representatives for 19 years.