{"id":555547,"date":"2026-03-31T04:59:35","date_gmt":"2026-03-31T04:59:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/555547\/"},"modified":"2026-03-31T04:59:35","modified_gmt":"2026-03-31T04:59:35","slug":"colas-reforms-both-or-neither-pension-policy-percolates-in-oklahoma-legislature","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/555547\/","title":{"rendered":"COLAs, reforms, both or neither? Pension policy percolates in Oklahoma Legislature"},"content":{"rendered":"

\"\"<\/a>From left: Senate President Pro Tempore Lonnie Paxton (R-Tuttle) speaks with House Speaker Kyle Hilbert (R-Bristow) and House Speaker Pro Tempore Anthony Moore (R-Clinton) ahead of the State of the State address Monday, Feb. 2, 2026. (Legislative Services Bureau)
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Oklahoma\u2019s seven public pension systems have seen their solvency greatly improved over the past two decades, but disagreements over when and how to hike monthly payments to retirees are brewing amid legislative budget negotiations.<\/p>\n

Despite significant economic inflation driving food, insurance and other costs for Americans, Oklahoma\u2019s public pensioners have not seen a cost of living adjustment \u2014 commonly called a COLA \u2014 since 2020<\/a> when lawmakers passed a stair-stepped plan<\/a> that increased monthly payments by 4 percent for those retired five years or more and 2 percent for those retired between two and five years.<\/p>\n

With Fiscal Year 2027 budget conversations culminating perhaps sooner than later, House leaders hope a deal can get done to give a COLA to retired teachers, firefighters, law enforcement, judges and other former state employees.<\/p>\n

\u201cI believe we should do across-the-board COLAs. I think that would be beneficial,\u201d House Speaker Kyle Hilbert (R-Bristow<\/a>) said Friday. \u201cI believe there\u2019s support in the House for doing that. It\u2019s been several years since we\u2019ve done one, and a lot of our pensions are improving.\u201d<\/p>\n

House Speaker Pro Tempore Anthony Moore echoed that sentiment, subtly revealing his understanding of conversations in the Senate.<\/p>\n

\u201cI don\u2019t like to speak to the entire House, but I think that we\u2019re obviously for the idea that you either have to do a COLA for all or a COLA for none,\u201d said Moore (R-Clinton<\/a>). \u201cWe\u2019re not going to pick and choose and put people in that position picking between different systems.\u201d<\/p>\n

Across the rotunda, Senate Republicans appear slightly more divided on the topic \u2014 or at least more hesitant to increase liabilities for the pension systems that have lower funded ratios, a statistic derived from dividing a fund\u2019s actuarial assets by its accrued liabilities.<\/p>\n

As outlined in Gov. Kevin Stitt\u2019s proposed Fiscal Year 2027 budget book, Oklahoma\u2019s seven pension systems have funded ratios ranging from 74.6 percent to 107.8 percent:<\/p>\n

On Monday morning, hours after the original publication of this article, Senate President Pro Tempore Lonnie Paxton said conversations remain active.<\/p>\n

\u201cIt is all under consideration, said Paxton (R-Tuttle<\/a>). \u201cEverything is on the table.\u201d<\/p>\n

Senate Appropriations and Budget Committee Chairman Chuck Hall (R-Perry<\/a>) said Friday he was yet to be in a position to discuss \u201cwhat, if any, COLAs will or will not be put up for consideration this session.\u201d<\/p>\n

\u201cIn general, I\u2019m supportive of managed COLAs when a pension system is over 100 percent funded. Any COLA consideration for systems not fully funded \u2014 and by that I mean at 100 percent \u2014 should be closely evaluated to include: examining the cost to the system if a COLA is required to be absorb, employee and employer contribution levels, other dedicated funding sources and projected pension investment returns.\u201d<\/p>\n

Seeking \u2018a plan\u2019 and \u2018a path\u2019
\n\"\"As outlined on Page 7 in Gov. Kevin Stitt\u2019s proposed FY 2027 budget book<\/a>, Oklahoma\u2019s pension systems have funded ratios ranging between 74.6 percent and 107.8 percent. (Screenshot)<\/p>\n

In 2024<\/a>, Oklahoma\u2019s combined pension systems had the 17th best funding ratio in the country, up from 24th the year before<\/a>. Boosting state pension systems with apportioned tax revenue for two decades has increased Oklahoma\u2019s overall pension funded ratios, which had reached 80 percent in 2023, more than 85 percent in 2024 and 87.2 percent now.<\/p>\n

In February, Paxton, Hall and four other members of Senate Republican leadership held a press conference<\/a> to propose funding a teacher pay raise and other increased State Department of Education appropriations by reducing the amount of \u201coff the top\u201d apportioned income tax and sales tax revenue is dedicated to the TRS.<\/p>\n

Asked at that press conference for a show of hands if they support a COLA for retired educators this session, Senate Education Committee Chairman Adam Pugh (R-Edmond<\/a>) was the only senator of the six in attendance who fully signaled in the affirmative.<\/p>\n

Support among House Republicans appears stronger.<\/p>\n

\u201cObviously, the conversation earlier this session about [TRS] in particular kicked off a big discussion,\u201d Hilbert said. \u201cI think it\u2019s important. We should have conversations about the subsidies that go into these systems. Eventually, they will be 100 percent funded, and so what does this look like long term? Because when I talk to folks at the Teachers Retirement System itself, they don\u2019t anticipate having subsidies after they\u2019ve reached 100 percent. Now, that\u2019s projected in 2034 or 2035, but I think we can have a holistic conversation about COLAs and what the subsidies to those systems look like.\u201d<\/p>\n

With each chamber returning to committee consideration of the other\u2019s bills this week, COLA conversations are expected to continue behind the scenes.<\/p>\n

\u201cI would love to see a plan, a path, to getting them all to 100-percent funded,\u201d Hilbert said. \u201cI think we can do that and can responsibly do COLAs while building upon the successes of the past couple of decades where we\u2019ve really improved our systems.\u201d<\/p>\n

Bipartisan co-authors back \u2018win-win\u2019 situation
\n\"\"Sen. David Bullard (R-Durant) listens during Gov. Kevin Stitt\u2019s State of the State address Monday, Feb. 2, 2026. (Legislative Services Bureau)<\/p>\n

If Hilbert is looking for \u201ca plan\u201d to fund COLAs and ensure pension system solvency, Sen. David Bullard thinks he has one.<\/p>\n

Bullard (R-Durant<\/a>) filed SB 172<\/a> this session to take the Legislature out of the decision-making process when it comes to pension COLAs, a delicate topic amplified each election year like this one.<\/p>\n

Instead, under SB 172, each pension board would be empowered to approve 2 percent COLAs as their systems see their funding ratios climb. The bill would prescribe:<\/p>\n

A cost-of-living adjustment may be approved by the board if the funded ratio of the system exceeds 80 percent. Subsequent cost-of-living adjustments may be approved each time thereafter that the system\u2019s funded ratio increases by 5 percent from the percentage which authorized the previous cost-of-living adjustment. Provided, if the system\u2019s funded ratio exceeds 100 percent, the system may approve a cost-of-living adjustment at any time, so long as such adjustment does not cause the funded ratio of the system to drop below 100 percent.<\/p>\n

SB 172 was withdrawn from the Senate Appropriations and Budget Committee last month, and it did not receive a Senate floor vote by last week\u2019s deadline. Still, Bullard called its concepts \u201cwildly popular\u201d and said \u201ceveryone\u2019s finding out about it.\u201d<\/p>\n

\u201cIt reforms the system. It takes the COLA away from the Legislature and gives it to the boards of all of those pension funds,\u201d Bullard said. \u201cIt sets growth first, but it guarantees that, along the way, some of these retirees are going to get some much-needed COLAs. So it\u2019s the best of both worlds.\u201d<\/p>\n

Bullard said the two pension systems already achieving 100 percent funded ratios \u2014 the judicial system and the system for public employees \u2014 would be able to see a COLA immediately upon the passage of SB 172. The others, however, would need to see additional growth first in the coming years.<\/p>\n

\u201cFor conservatives, for everybody, it\u2019s a win-win situation,\u201d Bullard said.<\/p>\n

While Paxton initially said all options are on the table when it comes to COLAs this session, he said Bullard\u2019s idea in SB 172 would not be part of the conversation moving forward.<\/p>\n

\u201cNo, the Legislature needs to be involved in that,\u201d Paxton said of COLA decisions. \u201cI believe it needs to be a vote in the Legislature. I pretty much always oppose automatic anythings \u2014 you know, automatic raises of things, or anything like that. This needs to be something Legislature has to decide.\u201d<\/p>\n

Asked his response to those who believe having the Legislature vote on COLAs has historically politicized the decisions, Paxton acknowledged the dynamic.<\/p>\n

\u201cIt does, but still, it\u2019s our job,\u201d he said.<\/p>\n

While Bullard\u2019s bill stalled out \u2014 at least temporarily \u2014 amid broader Senate sore spots in a contentious election year, the idea has bipartisan support. Sen. Mark Mann (D-OKC<\/a>) has signed on as a co-author, and Rep. Gabe Woolley (R-Broken Arrow<\/a>), Rep. Trish Ranson (D-Stillwater<\/a>) and Rep. Jared Deck (D-Norman<\/a>) are all co-authors in the House.<\/p>\n

So is Moore, the top House Republican behind Hilbert, who noted it has been six economically difficult years since Oklahoma pensioners received their last COLA.<\/p>\n

\u201cAs it stands right now, we\u2019re probably in favor addressing some sort of COLA (this year), whatever that percentage looks like,\u201d Moore said. \u201cGiven the current climate, we\u2019ve got to do something to help those systems and those pensioners out to make sure that they\u2019re being able to meet their needs and address those issues.\u201d<\/p>\n

Moore said it\u2019s possible that different pension systems could see different COLA percentages.<\/p>\n

\u201cThat\u2019s a potential option,\u201d Moore said. \u201cBut I think we would probably do it uniform across the board, because those higher-funded pensions will just roll down and be able to eat it back in, so it\u2019s no additional cost to the budget. I think that\u2019s probably where we\u2019ll be looking.\u201d<\/p>\n

Moore noted that, between the ideas in Bullard\u2019s bill and Hilbert\u2019s desire to see long-term planning for the end of additional apportionments, the COLA conversation this election year is different than a simple yes-no debate.<\/p>\n

\u201cIt\u2019s a little bit of of a chess match,\u201d Moore said. \u201cYou move one (piece), it kind of affects some others. So we\u2019re trying to make sure that we get everybody on board and and do what\u2019s best for all the systems at the same time, rather than trying to pick winners and losers.\u201d<\/p>\n

Bullard expressed frustration with the fact SB 172 was not granted a hearing over the past month, but he noted that no idea is dead until lawmakers adjourn sine die.<\/p>\n

\u201cKeep in mind, it could be that, in the negotiations, that comes back in a [Joint Committees on Appropriations and Budget] form,\u201d Bullard said. \u201cThat is definitely a possibility, but that probability is not too good.\u201d<\/p>\n

Oklahoma Education Association<\/a> President Cari Elledge said in a statement Friday that this year\u2019s COLA conversations are important.<\/p>\n

\u201cOEA recognizes the need for all retirees to get a cost of living adjustment,\u201d Elledge said. \u201cIt has been far too long with no adjustments for retirees. We are hopeful the Legislature can find a path forward to give all retirees the financial relief they so desperately need.\u201d<\/p>\n

Mark Nelson, president of the Oklahoma State Fraternal Order of Police<\/a>, also said his union is supportive of a COLA.<\/p>\n

\u201cWe appreciate the difficulty legislators have in determining how to pay for COLAs,\u201d Nelson said. \u201cI\u2019m proud to report the police pension system is nearly 100 percent funded and can easily pay for a COLA for our retirees. We are working hard with House and Senate leadership to find a solution this year.\u201d<\/p>\n

Tony Morgan, president of the OKC Firefighters Local 157<\/a>, said legislators\u2019 decisions about when to fund a COLA need to have more nuance than simply examining the funded ratio of a pension system.<\/p>\n

\u201cWhile every pension plan should strive to be 100 percent funded, determining the overall health of any system by solely focusing on the funding ratio is only a portion of the picture. The amortization rate, or the schedule for a pension system to become fully funded, is much more important,\u201d Morgan said in a statement Monday morning. \u201cThe Oklahoma Firefighters Pension was formed in 1981, and at the time had a funding ratio of 11 percent. We now sit at 74.6 percent and are projected to reach 100 percent in 18 years. OKC firefighters support increasing benefits for all of our members while maintaining the overall health of the system.\u201d<\/p>\n

Hilbert suggested that stakeholder eyes ought to be on the Senate.<\/p>\n

\u201cUltimately, I think COLAs would be wise, and I think it\u2019s time that we do one, but I can only speak for the House,\u201d he said.<\/p>\n

(Update: This article was updated at 1:45 p.m. Monday March 30, to include comments from Paxton and Morgan.)<\/p>\n

\"Tres <\/p>\n

Tres Savage<\/a> <\/p>\n

Tres Savage (William W. Savage III) has served as editor in chief of NonDoc since the publication launched in 2015. He holds a journalism degree from the University of Oklahoma and worked in health care for six years before returning to the media industry. He is a nationally certified Mental Health First Aid<\/a> instructor and serves on the board of the Oklahoma Media Center<\/a>.<\/p>\n

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