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Pennsylvania's FY 2026-27 state budget includes a long-overdue cost-of-living adjustment (COLA) for more than 34,000 retired educators and education support professionals who retired before Act 9 of 2001. After nearly 25 years without a pension increase, these retirees will finally receive meaningful relief.

The bipartisan state budget approved by the General Assembly and signed by Gov. Josh Shapiro includes a permanent COLA for eligible pre-Act 9 PSERS retirees.
This marks the first time since 2002 that Pennsylvania has approved a pension COLA for retired public school employees. Thousands of retired educators and support professionals who have seen inflation steadily erode the value of their pensions will finally receive the increase they have earned.
For nearly a quarter century:
This COLA helps restore the promise of a secure retirement for the public servants who dedicated their careers to Pennsylvania's students.
This victory would not have been possible without years of advocacy from PSEA members, retirees, legislators from both parties, and Gov. Josh Shapiro.
Together, we secured one of PSEA's legislative priorities and reaffirmed that every public school employee deserves dignity and security in retirement.
“I was inspired to go into teaching because of the words of John Kennedy. In addition to calling us to service, as a mathematics teacher, he wanted to beat the Soviets to the moon. We succeeded in that. I served my county, helped beat the Soviets to the moon. And now I feel really let down and overlooked.”
"Many [Pre-Act 9 retirees] retired at much lower salaries. Some of them chose not to take Social Security. They need our help. Their pension does not cover the food, the medicines, their utilities."
“So many retirees really, really need a COLA. Every year that they don’t get one, their lives get harder, and their money doesn’t go as far. I’m very glad that PSEA recognizes how important this is. PSEA-Retired members are going to work as hard as we possibly can to help get this done.”
“So many of our retired teachers retired 20, 30 years ago and have not had a cost-of-living increase in their pension. Some of them are living on $9,000 a year. When I started in '78, my salary was $9,000, which means that theirs was probably $15,000. So they're getting a pension based on $15,000, and Social Security based on $15,000. So they are living on very, very little, and they really need help in the situation with the cost-of-living. It's crucial that our legislators give our pre-Act 9 retired educators a cost of living increase.”