OKLAHOMA CITY - The Oklahoma Public Employees Retirement System provides retirement services to the state’s public servants.
With active members working in the public sector, they’re paying into the system and helping to fill the coffers for their retired colleagues to reap their benefits.
But with rising costs for eveiything from food to fuel and all points in between, discussion and action for cost-of-living adjustments have become even more timely. The key is to not break the system.
Republican gubernatorial candidate Mike Mazzei, who served in the Oklahoma Senate from 2004 to 2016 and as Gov. Kevin Stitt’s Secretary of Budget from 2019 to 2020, said he understands the need.
Mazzei told Southwest Ledger that reevaluating COLAS is a must for the system. He said he would never support changes to the defined benefit system as governor.
“COLAS (cost of living adjustments) should (happen) every other year, getting our pension systems to 90% funded makes that possible,” Mazzei said. “We need to have regular cost of living adjustments” Effective July 1, House Bill 4050 by Rep. Trey Caldwell, R-Faxon, and Sen. Chuck Hall, R-Periy, decreased the contribution rate for state agency employers from 16.5% to 9.5%. This decrease only impacts employer contributions; the contribution rate one pays as an OPERS member remains the same.
The bill does not change the amount you contribute to OPERS as an employee. It also does not change current benefit payments for retired members or how future benefits will be calculated.
The bill sunsets on June 30, 2031, at which time the employer contribution rate will go back to 16.5%, according to OPERS.
As of June 30, OPERS held $15 billion in total assets with recent reports showing the pension system to be in a strong financial position, exceeding 100% funding due to past legislative reforms.