Oklahoma’s seven state pension funds earned almost $4 billion during fiscal 2011, moving up to $21.5 billion from $17.9 billion at the end of fiscal 2011.

The Oklahoma State Pension Commission said last week the seven funds have total unfunded liabilities of $16.5 billion.

However, a new law that requires the Legislature to fully fund cost-of-living pension increases is expected to reduce the liability by a third.

Investment consultants told the commission that the funds’ investments are up 20% so far in fiscal 2012, but that market volatility are expected reduce those gains.

The commission said stock holdings in the seven portfolios range from 52% to 68%.

Lawmakers in the 2011 legislative session adopted five measures aimed at rebuilding the underfunded pension systems.

The new laws increase the retirement age for most employees, including teachers and judges, and cut off benefits for members convicted of crimes related to their offices.

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