"Moving to the more modern, 401(k)-style model helps state government to accomplish two important goals," Fallin said. "First, it helps us to recruit qualified new hires by providing more flexible, versatile retirement options. Under this bill, state employees looking to change careers would have the option of taking their retirement money with them, rather than being locked into a mid-20th century pension system.
"Second, it helps to stabilize the pension system for current public employees.
"Reducing benefits for future
Senate Bill 2120 would apply to state employees hired after
It would require new employees to contribute from 3 to 7 percent of their salaries, which would then be matched by their employer. Employees designated "hazardous duty" would be exempt under the bill, including fire and police employees. Teachers would not be included this year.
The change is only for new state employees. Current employees would keep their defined benefit plans.
"We always talk about the importance of running government like a business. This is a transition that much of the private sector made over a decade ago," said
The legislation passed the
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