Senate Concurrent Resolution 4

STATE OF OKLAHOMA

1st Session of the 50th Legislature (2005)

SENATE CONCURRENT

RESOLUTION 4 By: Mazzei

AS INTRODUCED

A Concurrent Resolution resolving the Oklahoma State Legislature to contain and liquidate the unfunded actuarially accrued liabilities of the Teachers’ Retirement System of Oklahoma; and directing distribution.

WHEREAS, the Teachers’ Retirement System of Oklahoma is one of the worst-funded retirement systems in the nation; and

WHEREAS, as of June 30, 2004, the System has approximately $14 billion of liabilities with only $6.5 billion in assets, leaving a $7.5 billion unfunded actuarially accrued liability; and

WHEREAS, under current actuarial assumptions which include a conservative one percent (1%) annual cost-of-living adjustment assumption the System’s unfunded actuarially accrued liabilities will never be fully paid; and

WHEREAS, the rapidly declining funded ratio of the System as of June 30, 2004, is 47.3% which is a 6.4% drop from its 2000 funded ratio; and

WHEREAS, the State of Oklahoma is obligated to actuarially maintain the funding of its public retirement plans.

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE 1ST SESSION OF THE 50TH OKLAHOMA LEGISLATURE, THE HOUSE OF REPRESENTATIVES CONCURRING THEREIN:

THAT the Oklahoma State Legislature hereby finds that containment of the current unfunded actuarially accrued liabilities of the Teachers’ Retirement System of Oklahoma is and should be a legislative priority and hereby dedicates itself to taking steps as are necessary to cause the liquidation of such liabilities. As an initial step, the Oklahoma State Legislature finds that legislation is needed which will get the System to a 60% funded ratio by June 30, 2015, based upon the actuarial assumptions utilized in the June 30, 2004, actuarial valuation report.

THAT the Secretary of State is hereby directed to distribute copies of this resolution to the Governor and to each member of the Board of Trustees of the Teachers’ Retirement System of Oklahoma.

50-1-104 SJ 02/05/200538388.66