Many of Oklahoma’s retired public employees could receive cost of living adjustments between 3% and 6% under a series of bills advanced by the state Senate on Tuesday.
Those slated to receive increases include teachers, police officers, firefighters, judges and other public employees.
Those who have been retired between 10 and 20 years will receive a 3% COLA and those who retired more than 20 years ago will receive 6%.
Cost of living adjustments were included in a $12.8 billion budget deal agreed upon by Republican state leaders.
The last time the Legislature approved COLAs for public employees was in 2020. The adjustments are paid for out of the pension systems, not state appropriations.
Senate Bill 1144, in addition to granting a COLA, would end legislative apportionments to the Teachers’ Retirement System Dedicated Revenue Revolving Fund when the account is at least 100% funded or in 2036, whichever comes first. The bill advanced 43-1.
This would come at a $306 million cost to the pension system.
Lawmakers currently spend about $550 million a year to help fund the Teachers Retirement System. In addition to employee and employer contributions, lawmakers allocate about 5.25% of income, sales and use tax collections to pay for the system, which is more commonly known as TRS. It is 80% funded and experts have said the pension system is on track to be fully funded within nine budget years.
Senate President Pro Tem Lonnie Paxton, R-Tuttle, said he supports apportionment reform for all public retirement systems but the Legislature needs to take reform “one bite at a time.”
Retirees who participate in the Oklahoma Public Employees Retirement System, or OPERS, would also receive the 3% to 6% COLA under Senate Bill 1145, which passed 41-4. The adjustment is expected to cost the pension system about $132 million.
The Senate unanimously passed Senate Bill 1146 which offers the COLA to participants of the Police Pension and Retirement System. This is expected to cost the pension system $56 million.
Senate Bill 1147 would give the Firefighters Pension and Retirement System the 3% to 6% COLA adjustment and provide a monthly pension to retired volunteer firefighters who retired before Nov. 1. The measure advanced 45-2.
The total cost is estimated to be more than $72 million to the pension system.
The Uniform Retirement System for Judges and Justices would also have the same COLA adjustment under Senate Bill 1148, which advanced 38-10. This adjustment is expected to cost $4.2 million.
Senate Bill 1149 would give pensioners in the Firefighter Pension and Retirement System and the Police Retirement System who retired before 1989 a $25,000 one time stipend. Paxton said this covers a few hundred people who have been left behind between systems and past COLAs.
The bill, which passed unanimously, would cost the firefighter pension $5.8 million and the police system $3.5 million.
All of the bills must be approved by the House before being sent to Gov. Kevin Stitt for consideration.
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