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HARRISBURG, PA (March 17, 2025) — The Pennsylvania House State Government today advanced two pieces of legislation that would provide pension cost-of-living adjustments (COLA) to tens of thousands of retired educators, school support staff, and state employees who have not gotten raises in more than 20 years.

The committee action focused on public employees who retired prior to the passage of Act 9 of 2001, which increased pension benefits for active members by 25%. Consequently, pre-Act 9 retirees have significantly lower monthly pension benefits than those who retired after Act 9 was passed, and they have not gotten any type of increase in their pensions since 2002.

The committee approved two bills — House Bill 408 and House Bill 411. HB 408 provides cost-of-living adjustments ranging from 10% to 20% to pre-Act 9 retirees, depending on year of retirement. HB 411 provides slightly higher cost-of-living adjustments, ranging from 15% to 24.5%

PSEA President Aaron Chapin issued the following statement on today’s committee vote:

“Thank you to the lawmakers on the House State Government Committee who voted to advance a cost-of-living adjustment for tens of thousands of retired educators, school support staff, and state employees who haven’t gotten a raise in their pensions in more than two decades. Thank you for recognizing and respecting a generation of public servants who spent their careers making our commonwealth a better place to live, work, and learn.

“These hardworking folks dedicated their lives to the students of Pennsylvania, and now in their 80s and 90s they are struggling to afford their medications, put food on the table, and pay their bills. Every year that goes by without a cost-of-living adjustment, their lives get harder, and their money doesn’t go as far.

“These retirees should be enjoying their retirements with their families and friends, not worrying about how they are going to pay their bills in the face of skyrocketing inflation.

“We thank Reps. Steve Malagari and Daniel Deasey for sponsoring and championing this legislation and all the House lawmakers who have voted to give pre-Act 9 retirees much needed raises. It is long past time for policymakers to restore the promise of a secure retirement to our retired public servants.”

From 1968 to 2002, the Pennsylvania General Assembly passed legislation every four or five years, granting public-sector retirees COLAs that typically made up for at least half of the intervening rate of inflation.

It has been more than 20 years since pre-Act 9 retirees received any type of increase to their pensions. Their pensions are, on average, less than $20,000 a year. As a result of rising inflation, their real buying power has declined by 40% over the past two decades.

Chapin is a Stroudsburg Area middle school teacher and president of PSEA. An affiliate of the National Education Association, PSEA represents about 177,000 active and retired educators and school employees, aspiring educators, higher education staff, and health care workers in Pennsylvania.