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Legislation Would Create State-Run Plan in Oklahoma

Legislation

The Oklahoma legislature is considering a measure that would make the Sooner State one of the next states to provide a state-run retirement plan for employees whose employers do not offer one. 

The Oklahoma Prosperity Act was introduced in both chambers on Feb. 1. The House of Representatives version, HB 2302, was introduced by Rep. Dustin Roberts (R-Durant). The Senate iteration, SB 527, was introduced by Sen. John Montgomery (R-Lawton ), Vice Chair of the Senate’s Retirement and Insurance Committee. 

What the Legislation Would Do

The Oklahoma Prosperity Act would create an automatic enrollment payroll deduction IRA in which any private employer and its employees may participate.

Oklahoma Sooner Choice Trust Board. The legislation would give the state Treasurer overall responsibility for developing and operating the program. But it also provides that the program would be administered by a six-member Oklahoma Sooner Choice Trust Board, whose responsibilities would include: 

  • prudently investing the retirement funds in a manner consistent with best practices;
  • maximizing participation and savings;
  • ensuring portability of benefits;
  • providing for the deaccumulation of enrollee assets in a manner that maximizes financial security; 
  • conducting at least a biennial review of investment vendors contracting with the board;
  • providing reports to the Governor, State Treasurer, legislature and participating employers;
  • designing and disseminating to all employers an employer information packet and an employee information packet; and 
  • provide a process through which employers may register for the program. 
     

Enrollment. The legislation provides that enrollment in the program would begin two years after the effective date of the measure; however, it also would allow the board to extend the implementation period by another 12 months if needed. 

  • Employers enrolled in the program would designate an open enrollment period for the program and facilitate a payroll deposit retirement savings arrangement to allow each eligible employee to participate in the program at least nine months after the board opens the program for enrollment. Employers that fail to enroll employees that do not opt out of the program would be subject to certain penalties.
  • Employees of participating employers would be automatically enrolled. Employees would be able to select a contribution level and investment option. They also would be allowed to opt out of the program. 

Status

SB 527 was referred to the Senate Finance Committee, where it passed as amended in an 8-4 vote on Feb. 9; it is now before the Senate Appropriations Committee. HB 2302 was referred to the House Rules Committee on Feb. 2.