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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Information on the Retirement Bill moving
through the House today.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> Sawyer, Greg <br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, May 24, 2006 9:48
AM<br>
<b><span style='font-weight:bold'>To:</span></b> Maletz, Maryanne; <st1:PersonName
w:st="on">Risser, Paul</st1:PersonName>; <st1:PersonName w:st="on">Stuart,
Debra</st1:PersonName>; Mauck, Sheri<br>
<b><span style='font-weight:bold'>Subject:</span></b> HB 2514 FYI - Retirement
COLA</span></font><o:p></o:p></p>
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12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Today's House floor agenda includes HB 2514. .</span></font><o:p></o:p></p>
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12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>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.</span></font><o:p></o:p></p>
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12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>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.</span></font><o:p></o:p></p>
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12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>In the case of OTRS that assumption is 1%.</span></font><o:p></o:p></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>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.</span></font><o:p></o:p></p>
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12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>This bill does not contain any language authorizing
" wear-a-way" provisions or increasing employer contribution rates.</span></font><o:p></o:p></p>
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12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>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.</span></font><o:p></o:p></p>
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12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>_______________________________________________________________________________________________________</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Greg Sawyer</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Associate Vice Chancellor for Budget and Finance</span></font><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:PlaceName w:st="on"><font size=2
face=Arial><span style='font-size:10.0pt;font-family:Arial'>Oklahoma</span></font></st1:PlaceName><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'> <st1:PlaceType
w:st="on">State</st1:PlaceType></span></font></st1:place><font size=2
face=Arial><span style='font-size:10.0pt;font-family:Arial'> Regents for Higher
Education</span></font><o:p></o:p></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=2
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
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