The state Senate Pensions Committee on Monday approved legislation that would move new state employees away from the state's traditional defined benefit pension plan to a 401(k)-style defined contribution plan.

Gov. Mary Fallin praised the committee's action Monday, while an organization representing state correctional officers criticized it.

“Moving to the more modern, 401(k)-style model helps state government to accomplish two important goals,” Fallin said. “First, it helps us to recruit qualified new hires by providing more flexible, versatile retirement options. Under this bill, state employees looking to change careers would have the option of taking their retirement money with them, rather than being locked into a mid-20th century pension system.

“Second, it helps to stabilize the pension system for current public employees. Oklahoma pension systems currently have $11 billion in unfunded liabilities. The system as it stands today is not financially sound. It's important we shore up our pension systems so we can pay out the benefits we have promised to our retirees.”