By Michael McNutt
The Oklahoman
OKLAHOMA CITY — An estimated 800 firefighters from 60 fire departments across the state descended Wednesday on the state Capitol to voice their displeasure and concerns about legislation they feared would threaten their pension benefits.
Part of their apprehension was allayed when the House of Representatives passed a bill that calls for a study on six pension plans, including the firefighters’.
House Bill 1005 passed 91-2 and now goes to the Oklahoma Senate.
Its passage effectively extinguishes HB 1221, which would have revamped the firefighters’ pension system, said Rep. Randy McDaniel, R-Oklahoma City, author of HB 1005.
Asked why he didn’t offer the measure sooner, he said: “I wanted to see how things were going. We tried to come to an agreement with several of the public safety pension plans, and we just thought we would take a little bit more time to make sure we develop a very thoughtful, good plan.
“Since it didn’t materialize, we decided we’ll go ahead and put it in a task force,” he said. “That way we can continue looking at it, evaluating what can actually make a difference and hopefully with a great solution next year.”
Rep. Mark McCullough, R-Sapulpa, author of HB 1221, conceded Wednesday his measure appears in trouble this session. He doesn’t have a Senate sponsor, which is necessary before it can be brought up on the floor.
“I’m not pulling it,” he said. “But I don’t have a high level of confidence that it will be heard.”
Dozens of firefighters stopped by McCullough’s office. A big sign on his office door said, “Welcome Firefighters.”
Three commercial buses brought firefighters from Tulsa and Lawton and hundreds of other volunteer and paid firefighters from Oklahoma City, Midwest City, Edmond, Del City, Glenpool, Sand Springs, Moore, Claremore, Sallisaw and other departments drove to the Capitol.
Outdoor rally
More than 400 attended an outdoor rally, which lasted less than an hour because of the chilly weather. Firefighters then went to the House chamber, where more than 300 crowded into the galleries to watch House members. They had to be gaveled down after cheering and applauding after a lawmaker opposed an unrelated bill involving public school lobbyists and called it anti-union.
Bert Norton, president of the Oklahoma State Firefighters Association’s board, and Rick Beams, president of the Professional Fire Fighters Association, criticized McCullough’s bill. It would have required firefighters hired after Nov. 1 to complete 25 years instead of 20 years to receive retirement pay. They also would have to have served 12 ½ years instead of 10 years to be vested in the pension plan.
It made similar changes to the police pension fund.
Norton and Beams said they were pleased with HB 1005, but disappointed no firefighter or anyone from any of the five other pension groups to be studied were on the task force. It calls for a seven-member task force consisting of four House members and three senators.
McDaniel said there are no plans to change the task force’s composition.
“We want every pension plan to be well represented. We want to have open meetings. They will all be invited to have a seat at the table ... but they won’t be on the task force,” he said.
Studying six pensions
The task force is to study and make recommendations on issues such as the prefunding of cost-of-living adjustments and methods for improving the funded status of pension plans. They are to meet later this year and make a final report by Dec. 31. They will study the Oklahoma Firefighters Pension and Retirement System, the Oklahoma Police Pension and Retirement System, the Oklahoma Law Enforcement Retirement System, the Teachers’ Retirement System of Oklahoma, the Oklahoma Public Employees Retirement System, and the Uniform Retirement System for Justices and Judges.
Norton said firefighters are concerned that more money from the state’s insurance premium tax has been diverted in recent years from the firefighters’ pension. The insurance premium tax was intended originally to fund the firefighters’ pension plan.
Insurance companies are required to pay a 2.25 percent tax on the amount of premiums they sell each year, but several companies in recent years have been using transferrable tax credits to pay their tax obligation.
When they don’t pay their premium tax, that is less money that goes to the pension funds and less money that goes to the general revenue fund, Norton said. No taxpayer money is appropriated to the firefighters’ pension fund.
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