JUNE 2, 2010

Legislature Adjourns Without Providing COLAs

The Second Session of the 52^nd Oklahoma Legislature reached final adjournment at 5:00 p.m. on Friday, May 28.  Despite a late flurry of legislation, lawmakers failed to grant a cost-of-living adjustment (COLA) to retired educators in the Teachers’ Retirement System.  Retirees in other state pension systems did not receive COLAs either.

The unwillingness of legislative leaders to grant COLAs seemed to be based on their belief that improved benefits should not be given to anyone with state government facing a shortfall of approximately $1.2 billion for the fiscal year beginning July 1.  As many as 5,000 active education employees are facing layoffs, and the same is true for an untold number of employees in various state agencies.

OREA members and professional lobbyists worked hard in the closing weeks of the session to convince legislators to grant a 2% permanent COLA, along with a 2% one-time across-the-board stipend of approximately $350.  While there was a strong likelihood that legislators would have approved a TRS COLA, leaders in the House of Representatives and Senate did not permit a vote to occur.  

State budget difficulties also doomed the possibility of an appropriation to help retired educators with health insurance premiums.  The state health insurance subsidy for TRS annuitants will remain at approximately $105 per month.

Reduced state revenues from income and sales taxes during the current fiscal year will also result in a loss of approximately $30-40 million in state dedicated revenues to the Teachers’ Retirement System, making it more difficult for the system to meet its annual cost of operation.  TRS, one of the most poorly funded major public pension systems in the nation, will not make funding progress unless and until the economy experiences a solid rebound and/or the legislature sees fit to provide adequate funding.  The immediate outlook is not good on either front. 

A more extensive legislative update will be provided after staff has the opportunity to carefully review the full range of legislation from the session.

A sincere “thank you” is extended to all members and friends who worked throughout the legislative session on behalf of the OREA legislative agenda.  To say the least, the session was a difficult one.  Nonetheless, important progress was made to advance retired educator issues, and there will be a time when we will reap the rewards of our efforts.  We know we can count on your continued support.