Twenty-three years is 23 years too long. That’s what PSEA has been telling lawmakers and Gov. Josh Shapiro about how important it is to enact a cost-of-living adjustment for more than 40,000 retired educators and support professionals who haven’t had a pension COLA since 2002. 

PSEA made a full court press over the last two years to finally get this issue over the finish line, with PSEA-Retired members leading the charge. Members sent thousands of postcards and emails to lawmakers, appeared on news programs, attended rallies, and met with lawmakers in the Capitol and in district offices.

While a COLA for pre-Act9 retirees didn’t become law in the last legislative session, legislation to enact a COLA made it further than it has in almost a quarter of a century, and it has bipartisan support in both the PA House and Senate.

Thanks to your advocacy, lawmakers are listening. In Nov. 2023, and again in Oct. 2024, the state House approved multiple bills that would provide a much-need COLA for state and school employees who retired before July 2001. Unfortunately, COLA bills stalled in the Senate last session, as legislative leaders failed to reach agreement on how to pay for the COLAs. The cost of the COLAs has been an ongoing concern for some lawmakers. Opponents also continue to cite concerns about the COLAs increasing the unfunded liability to the state’s retirement systems.

Nevertheless, at the start of 2025-26 legislative session, pro-public education lawmakers moved swiftly to re-introduce and advance COLA legislation. As one of the first orders of business, the PA House of Representatives approved HB 411, sponsored by Rep. Malagari. Like last session, HB 411 would provide COLAs between 15-24.5%, based on year of retirement, to nearly 60,000 PSERS and SERS annuitants who retired before Act 9 of 2001.

House Bill 411 had strong bipartisan support and passed the House in early April by a vote of 131-72. A recent actuarial analysis by the Independent Fiscal Office  estimates that if enacted, HB 411 would increase General Fund expenditures by $314 million over the next five fiscal years.  Exhibit 1 of the actuarial analysis shows that PSERS is projected to reach certain funded ratio benchmarks with or without the COLA.  ex) the system is projected to reach 70% funded in 2027, with or without the COLA; 82% funded in 2032 with or without the COLA;  and so on.

This fiscal analysis makes clear what PSEA has been saying all along - lawmakers can absolutely provide much-needed relief to pre-Act9 retired educators and support professionals without negatively affecting our pension fund or taxpayers.

And, to break the gridlock that has prevented consideration of COLA legislation in the upper chamber, a group of six Senate Republicans recently circulated a memo which proposes to pay for the COLAs using interest earned on the state’s Rainy Day Fund. This exciting development will spur discussions among House and Senate leaders and will hopefully position this important issue to be negotiated and finally enacted as part of this year’s state budget process.

PSEA members must continue to make their voices heard. We cannot let up! Please continue to tell your stories and let your elected officials know that you are counting on them to get this done NOW.