Henry will sign TRS Bill

OKLAHOMA CITY -- Oklahoma Gov. Brad Henry will sign a measure designed to stabilize the struggling Teacher Retirement System, his spokesman said late Friday.

Paul Sund, Henry's communication director, confirmed the governor would put his signature on Senate Bill 357 at a Monday afternoon signing ceremony.

"We are doing a signing ceremony Monday," Sund said in an e-mailed statement.

Designed to pump more than $200 million over the next five years into TRS, the proposal requires school districts to increase the amount of retirment contributions they make to TRS, provided the Legislature supplies the additional funding.

The bill, lawmakers said, also ensures the system's dedicated revenue sources -- such as personal, corporate, income, sales tax and use tax -- are not reduced regardless of economic downturns or tax cuts.

Currently the Teacher Retirement System is underfunded by more than $7 billion.

Henry said he would sign the bill because fixing TRS was one of his "top priorities."

"Addressing the unfunded liability of the Oklahoma Teachers Retirement System was one of my top priorities this legislative session, and I look forward to signing the legislation into law," he said Friday afternoon. "Our teachers perform an invaluable service for the state, and the least we can do is provide them with a stable pension system."

The measure also was supported by Henry's chief budget negotiator, State Treasurer Scott Meacham. Meacham said SB 357 would "go a long way toward fixing the huge unfunded liability" of the system.

However, area school officials, speaking Wednesday, were more cautious.

"We kinda like it,' said Moore Superintendent Deborah Arato, "as long as it's funded in the way lawmakers say."

While Arato said she believed the measure would help the system, she said she was concerned about the funding source.

"We just feel, we want to make sure there is a revenue source. We'd like to know the plan for the revenue source that will be used to compensate the schools."

When fully implemented in 2010, SB 357 will earmark about $60 million a year into the TRS.