SB 102, recently vetoed by the governor, was another attempt to chip away at past reforms that have helped put Oklahoma public pension systems in a fiscally responsible position.

SB 102 would have increased liabilities for the Oklahoma Police Pension and Retirement System (OPPRS) by $271 million with $90 million of those unfunded. Though OPPRS has a robust funding ratio, there should be an effort to maintain that funding status rather than go the other way. A pension system’s funding ratio refers to how well the system’s assets match up with liabilities. Increasing unfunded liabilities not only creates a cost for taxpayers, but also puts pension recipients at risk of having future benefits cut if the system becomes too out of balance.

With a budget deal now agreed to that has no additional tax cuts, asking taxpayers to foot the bill for increased government spending that also puts a retirement system in a worse position is unwise. Especially when taxpayers themselves have seen their incomes decline on a per-capita basis due to the high degree of inflation the last several years. 

Governor Stitt made a fiscally responsible decision with his veto of SB 102.