Tell Lawmakers to Vote No on HB 2293
HB 2293, which is currently working its way through the legislative process, will not be good for the health of our retirement system. The aim of the bill is to exempt an employer from paying their matching share of an employee’s teacher retirement when their salary is paid with funds from an externally funded program. The problem here is that federal regulations permit an employer to use federal dollars to satisfy the Teacher’s Retirement System of Oklahoma (OTRS) requirements only when dollars from “like” programs are also used to meet retirement system requirements in the same way.
If the current version of the bill passes, it would be necessary for the OTRS to make up for any shortfall in contributions for both externally funded contributions as well as federally funded contributions. This would mean a hit of approximately $28 million. No doubt, future COLAs for retired teachers could be in jeopardy.
More actuarial study is in order before any legislation becomes official. Accordingly, I urge you to contact the office of your Representative and Senator asking them to oppose this bill.
Here are additional resources from OTRS: