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Idea to send:	Topic Pensions and Retirement Content The state's six public employee pension plans must move from a defined benefit to a defined contribution plan. Legislation has been introduced for several years to do this, even Governor Brad Henry’s 2004 budget proposed to convert the current defined benefit retirement plan into a defined contribution plan for our state's teachers. A defined contribution plan is similar to 401(k) or 403(b) plan, where an employer might agree to contribute a specified dollar amount to an employee’s private retirement plan. Oklahoma's state pension systems are in a serious financial crisis with more than $10 billion in unfunded liabilities, according to a recent report from the Oklahoma Pension Oversight Commission. The state Teachers' Retirement System is in particularly bad shape with $7.1 billion in unfunded liabilities and a ratio of actuarial assets to actuarial liabilities of only 49.5 percent. It is the third worst-funded public pension system in the nation. Standard & Poor's recently ranked Oklahoma's pension funds 49 out of 50 states in percentage of unfunded liabilities. Only West Virginia fared worse.