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OKLAHOMA CITY 鈥� An Oklahoma Senate plan to has drawn mixed reactions in the week since Republican leaders unveiled it.

Groups representing active and retired educators, along with legislative Democrats, have opposed Senate Republicans鈥� idea to redirect $254 million that otherwise would supplement the Teachers鈥� Retirement System. GOP leaders said the pension system is in a strong position now that it鈥檚 80% funded, and those extra funds could benefit urgent needs in public schools.

The plan wouldn鈥檛 take any money out of the Teachers鈥� Retirement System, and no retirees鈥� benefits would be reduced. It would place a $200 million limit on a yearly pension subsidy, called an apportionment, that has helped build up the retirement system over the past 23 years on top of regular state and employee contributions.

Doing so would free up $254 million 鈥� in a tight budget year 鈥� for a $2,500 teacher pay raise, extra school funding, expanded private school tax credits and more, Senate leaders said.

The thought of repurposing retirement funds, though, has drawn scrutiny from the state鈥檚 largest teacher union and a group representing retired educators.

Oklahoma Education Association President Cari Elledge equated the plan to mortgaging a teacher鈥檚 future for a salary increase today.

鈥淲e shouldn鈥檛 be having to be the ones who are funding our own raises,鈥� she said.

Using money intended to benefit public school teachers to instead bolster private school tax credits also would be 鈥渧ery troubling,鈥� she said. The Senate plan would put $25 million of the pension apportionment funds into the state budget for the Parental Choice Tax Credit, which helps families pay for private schooling.

Retirement funds shouldn鈥檛 be used to finance other budget priorities, especially when retirees haven鈥檛 had a cost-of-living increase to their benefits in six years, the .

鈥淎n 80% funded ratio is meaningful progress 鈥� but it is not full funding,鈥� the organization wrote in a public statement. 鈥淩edirecting retirement dollars now risks reversing years of hard-earned stability.鈥�

Senate leaders didn鈥檛 rule out the possibility of a cost-of-living increase if their plan succeeds. They would need support from the House for the proposal to meaningfully advance.

House Speaker Kyle Hilbert, R-Bristow, stopped short of endorsing or rejecting the Senate idea. He said lawmakers, though, will have to someday decide what to do with the pension subsidy as the Teachers鈥� Retirement System inches closer to being 100% funded.

鈥淎t some point the subsidization of the pension systems, the TRS system, will need to go away,鈥� Hilbert told reporters Thursday. 鈥淚t鈥檚 just a question of is that (happening in) 2026, is that 2030, is that 2034? I think that鈥檚 the question we have to wrap our heads around as we make determinations on what is fully funded and when does that subsidy need to go away. It was never intended to be there forever.鈥�

Much of the criticism for the funding plan stems from a misunderstanding, said Senate President Pro Tem Lonnie Paxton, R-Tuttle. He said constituents who contacted Senate Republicans believed lawmakers planned to deduct from their pension paychecks.

鈥淢y wife is a retired teacher. I don鈥檛 get to go home at night if I鈥檓 trying to draw from her pension system. That鈥檚 not what we鈥檙e doing,鈥� Paxton said.

Senate Minority Leader Julia Kirt, D-Oklahoma City, said she heard similar fears from constituents. Her office has been 鈥渇looded with calls鈥� since the Republicans鈥� announcement.

Feedback on the proposal has been full of frustration, said House Minority Leader Cyndi Munson, D-Oklahoma City.

鈥淧itting retired teachers against active teachers is really not a good plan,鈥� Munson said. 鈥淚t鈥檚 not a popular idea.鈥�

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oklahoma Voice maintains editorial independence. Contact Editor Janelle Stecklein for questions: [email protected].

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