{"id":3151,"date":"2011-12-26T14:12:14","date_gmt":"2011-12-26T20:12:14","guid":{"rendered":"http:\/\/stateimpact.npr.org\/oklahoma\/?p=3151"},"modified":"2012-12-20T10:11:27","modified_gmt":"2012-12-20T16:11:27","slug":"how-phasing-out-the-income-tax-could-harm-oks-largest-pension-system","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/oklahoma\/2011\/12\/26\/how-phasing-out-the-income-tax-could-harm-oks-largest-pension-system\/","title":{"rendered":"How Phasing Out the Income Tax Could Harm OK&#8217;s Largest Pension System"},"content":{"rendered":"<div id=\"attachment_3154\"  class=\"wp-caption module image right\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"Caption\" href=\"http:\/\/stateimpact.npr.org\/oklahoma\/files\/2011\/12\/randy-mcdaniel.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-3154\" title=\"State Rep. Randy McDaniel, R-Edmond\" src=\"http:\/\/stateimpact.npr.org\/oklahoma\/files\/2011\/12\/randy-mcdaniel.jpg\" alt=\"\" width=\"300\" height=\"450\" srcset=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2011\/12\/randy-mcdaniel.jpg 300w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2011\/12\/randy-mcdaniel-100x150.jpg 100w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2011\/12\/randy-mcdaniel-200x300.jpg 200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p class=\"wp-media-credit\">Oklahoma House of Representatives<\/p>\n<p class=\"wp-caption-text\">Pension reform leader Rep. Randy McDaniel, R-Edmond, is worried about the state&#39;s largest pension system&#39;s ties to the threatened income tax.<\/p>\n<\/div><p>A phase-out of the personal income tax without a replacement revenue source would harm the state\u2019s largest pension system, a state lawmaker <a href=\"http:\/\/oklahoma.watchdog.org\/2543\/mcdaniel-income-tax-phase-out-needs-to-protect-teachers-retirement-system\/\">told Oklahoma Watchdog<\/a>.<\/p><p>Five percent of all income tax revenues are earmarked for the Oklahoma Teachers Retirement System, which McDaniel said is \u201cwoefully underfunded.\u201d<\/p>\n<blockquote><p>\u201c \u2026 unless new funding is found to replace that, elimination of the income tax would make it that much harder to make OTRS fully funded.\u201d<\/p><\/blockquote><p><!--more-->The OTRS has a $7.6 billion unfunded liability and a 56.7 percent funding ratio, according to latest actuarial report (click <a href=\"https:\/\/www.documentcloud.org\/documents\/279930-june-30-2011-actuarial-report.html\">here<\/a> to read).<\/p>\n<blockquote><p>In the private sector, a pension plan that is under 80% funded is considered \u201cat risk\u201d and contributions need to be increased, Oklahoma Watchdog reported.<\/p><\/blockquote><p><em><\/em>Last year, the OTRS had more than $10 billion in unfunded liabilities. That amount declined after a return on investments and the passage of McDaniel\u2019s pension reform measure, House Bill 2132.<\/p><p>If a replacement funding source is found, McDaniel is \u201call for\u201d reducing the income tax, according to Oklahoma Watchdog.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A phase-out of the personal income tax without a replacement revenue source would harm the state\u2019s largest pension system, a state lawmaker told Oklahoma Watchdog.Five percent of all income tax revenues are earmarked for the Oklahoma Teachers Retirement System, which McDaniel said is \u201cwoefully underfunded.\u201d \u201c \u2026 unless new funding is found to replace that, [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":3156,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[492,16],"tags":[118,249,185,186],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/3151"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/comments?post=3151"}],"version-history":[{"count":2,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/3151\/revisions"}],"predecessor-version":[{"id":3163,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/3151\/revisions\/3163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media\/3156"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media?parent=3151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/categories?post=3151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/tags?post=3151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}