House passes cost-of-living adjustment for state retirees

Mar. 11--In a rare unanimous vote, the Oklahoma House on Tuesday passed legislation to grant a cost-of-living adjustment this year to most state retirees.

The House's overwhelming support for the cost-of-living adjustment puts pressure on the state Senate, which punted on the issue last year, to approve the pension increases.

House Bill 3350 would give a 4% cost-of-living adjustment to former state employees who have been retired for five or more years. Retirees who have been retired for between two and five years will receive a 2% adjustment. Those who have been retired for less than two years will not receive any boost in their pensions.

Roughly 85% of the state's retirees will receive the 4% adjustment, said Rep. Avery Frix, R-Muskogee, the bill's author. An estimated 113,000 retirees will see some increase in their pension checks.

Senate Pro Tem Greg Treat has indicated his support for the concept.

"Some kind of stairstep, rather than an across-the-board (COLA) is a concept that I appreciate," he said. Treat, however, said his support does not necessarily translate to support from the full Senate.

Last year, the House approved a 4% across-the-board adjustment, but the Senate sought first to study the issue to see how pension increases might affect the state's once drastically underfunded pension systems.

The increases would have a $767 million impact on the state's pension systems.

In a news conference packed with state legislators and retirees, House Speaker Charles McCall, R-Atoka, said the pension increase is a priority for the House. HB 3350 passed on a vote of 99-0.

"The reason that we're here today is because we have instituted fiscal discipline over the last decade to bring our pension systems up to a level of where they are solvent," he said.

State retirees haven't received a cost-of-living adjustment since 2008. That's largely because Oklahoma's pension systems were, at one point, among the worst in the country because lawmakers granted cost-of-living adjustments without being able to afford the pension increases.

To improve the state's pension systems, lawmakers stopped granting automatic pension adjustments and have put roughly $300 million annually into the systems.

Asked whether the pension adjustments are a good idea in light of a recent drop in oil prices and global economic uncertainty, McCall said Oklahoma's economy ebbs and flows.

"I think the timing is fine," McCall said. "I believe it's responsible. I think it's funded. I think we've been paying for this for a long time coming."

Norman resident Dixie Jackson retired nine years ago after working at the Oklahoma Department of Mental Health and Substance Abuse Services for for 40 years.

Her health insurance, prescription drugs and utilities costs have all increased since her retirement.

"Many state employees have to go find additional jobs to pay for the essentials," she said. "That really is not retiring." she said.

In the news conference, House legislators encouraged state senators to approve the COLA legislation.

"Today, we stand here united, not as Democrats, not as Republicans, but as Oklahomans," said House Minority Leader Emily Virgin. "Oklahomans standing together to ensure that the promises this state made to retirees are upheld."

___

(c)2020 The Oklahoman

Visit The Oklahoman at www.newsok.com

Distributed by Tribune Content Agency, LLC.