Pa. public-sector retirees called on the Legislature to pass a long overdue pension cost-of-living adjustment (COLA). Pre-Act 9 retirees haven’t seen a COLA in more than 20 years.

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HARRISBURG, PA (Oct. 2, 2024) — Nearly 70,000 state and public school retirees are struggling to make ends meet after more than 20 years without a cost-of-living adjustment (COLA) to their modest pensions.

Advocates and lawmakers came to the Pennsylvania Capitol today to urge policymakers to do the right thing and pass a long overdue COLA for these retired public servants.

From 1968 to 2002, the General Assembly passed cost-of-living legislation every four or five years for retired public workers, but that stopped after the passage of Act 9 of 2001, a law that changed and enhanced pensions for public-sector employees.

Pre-Act 9 retirees like Robert McVay, who retired from the Franklin Area School District in 1998, saw none of the benefits of that 2001 law, and on top of that, they have gone more than two decades now without any adjustment to their pensions.

“Just imagine what it would be like to go to the grocery store today, fill up your cart, and pay for it with the income you earned twenty-some years ago,” McVay said at today’s Capitol press conference. “It is impossible.”

McVay and his wife made the painful decision to sell their family home in Franklin and move into a mobile home in Florida just to stay afloat, and still they struggle.

“Rising taxes, grocery costs, insurance, and utilities have all bitten into our stagnant income,” he said. “My dream of becoming a teacher turned into a nightmare of poverty in retirement because of the Legislature’s failure to act.”

Other advocates said these retirees who dedicated their lives to public service deserve better.

“Our retired members put it on the line every day during their service to this commonwealth,” said Pennsylvania State Corrections Officers Association President John Eckenrode. “Working in the state prison system, interacting with violent and dangerous criminals, they embody the very definition of public servants. More than two decades have now passed since they’ve received an increase in their COLA. It’s time to do right by these heroes and all Pennsylvania public servants who retired before Act 9 of 2001.”

Pennsylvania AFSCME Retiree Chapter 13 President Jeanne Weaver noted that legislation has already passed the House of Representatives to provide cost-of-living adjustments ranging from 15% to 24.5% to pre-Act 9 retirees.

“House Bill 1416 now sits in the state Senate while thousands of retirees struggle to keep up with the cost of living, with some falling into poverty,” Weaver said. "At the end of the day, we are talking about public retirees – senior citizens – who are active members in their communities and beloved figures in their families, and they are struggling to make ends meet. They are our parents and grandparents. They are being forced to make decisions between medicine or meals, or even paying a light bill."

Patti Defibaugh, chair of SEIU 668 Retiree Committee, recalled advocates gathering nearly a year ago at the Capitol to ask for a COLA for struggling state and county retirees.

“After working in public service for 25, 30, or 35 years, many retirees from the public sector receive less than $20,000 per year in their pensions,” Defibaugh said. “It is time to ensure public service retirees have a pension that covers basic living expenses.  Lawmakers in the state legislature have approved their own pay raises multiple times since the last increase in retiree payments more than 20 years ago. How can we justify to our senior citizens that they do not deserve the same consideration from their elected leaders?"

PSEA President Aaron Chapin, who emceed today’s press conference, commended state lawmakers who support passing a COLA, including Sen. Vincent Hughes, Sen. Katie Muth, and Rep. Steve Malagari, all of whom took part in the Capitol press conference.

“We are fortunate to have some very supportive lawmakers here with us today who want to do the right thing and provide a long overdue COLA to our pre-Act 9 retirees,” Chapin said. “But you know what? There are some other lawmakers in this building who don’t want to do the right thing. What do you say we set their salaries back to 2001 levels? What do you think? How would they like that? Not very much, I’d bet. Not very much at all.  But that is what they are doing to thousands of retired public servants through their inaction.”