[Cobo] FW: HB 2514 FYI - Retirement COLA

Wed May 24 09:55:13 CDT 2006

Information on the Retirement Bill moving through the House today.

________________________________

From: Sawyer, Greg 
Sent: Wednesday, May 24, 2006 9:48 AM
To: Maletz, Maryanne; Risser, Paul; Stuart, Debra; Mauck, Sheri
Subject: HB 2514 FYI - Retirement COLA

Today's House floor agenda includes HB 2514.  .

The bill provides COLAs for members of the the State's retirement
systems who retired prior to July 1, 2005.  The bill also makes some
changes to the OPERS system.

The COLA is based upon the assumptions included in each system's
actuarial assumptions for COLA's contained in their June 30, 2005
actuarial valuation.

In the case of OTRS that assumption is 1%.

The bill further specifies that the COLA is only authorized if the
increase in unfunded actuarial accrued liability created by the COLA was
also included in the liabilities presented in the June 30, 2005
actuarial valuation.   The bill takes effect July 1, 2006 if passed and
signed by the Governor.

This bill does not contain any language authorizing  " wear-a-way"
provisions or increasing employer contribution rates.

SB 1894 by Mazzei has also been filed.  The subject of this bill has
more to do with the process of how the Legislature will handle
retirement legislation.  The  biggest change in the bill would be that
retirement legislation financially impacting retirement systems would
only be heard every other year.

________________________________________________________________________
_______________________________

Greg Sawyer

Associate Vice Chancellor for Budget and Finance

Oklahoma State Regents for Higher Education

655 Research Parkway Suite 200

P. O. Box 108850

Oklahoma City, OK 73101-8850

405-225-9425 Office

405-225-9100 Main

405-225-9230 Fax

405-823-1214 Cell

gsawyer at osrhe.edu

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