Some Retired State Employees To Get COLA After More Than 20 Years

(The Center Square) – During a speech to AFSCME Chapter 13 retirees in Harrisburg on Monday, Gov. Josh Shapiro touted the first cost-of-living adjustment, known as COLA for short, in over 20 years for various public servants. 

“You represent really the best of the best, the people that make our world go round and round,” Shapiro said. “The people that make a difference in our communities: the bus drivers and the building engineers, the municipal workers in our boroughs, our townships, our communities, our cities-and the amazing employees that I get to work with every day, who make up the nearly 80,000 strong workforce of the Commonwealth of Pennsylvania.”

The COLA is a result of the bipartisan state budget Shapiro signed in July. Those eligible will be pre-Act 9 retirees, including teachers, local law enforcement, and firefighters who retired before 2001.

Act 9 went into effect in 2002.

Jeanne Weaver, president of the Retired Public Employees of Pennsylvania Chapter 13, explained that these workers have been advocating for a boost to their pension for decades.

“For more than 20 years, many of these retirees watched the cost of everything around them go up: groceries, housing, healthcare, while their pensions have remained frozen,” Weaver said. “This year, that finally changed.” 

“For thousands of AFSCME retirees, that means their first pension increased in more than two decades, with increases ranging from 15 to 24.5%, depending on when they retired,” she explained. 

Shapiro acknowledged that this is an issue he’s heard from constituents in Pennsylvania dating back to when he was running for state representative in the Philadelphia suburbs two decades ago. 

Echoing Weaver’s sentiment, the governor noted that although pensions had been protected during his first term, the benefits they provided were not keeping up with the cost of living. 

“This is going to help over 60,000 Pennsylvanians who retired before July 1, 2001, they hadn’t seen an increase in their benefits for more than two decades, even as costs began to rise,” Shapiro said. “I want you to think about this. Back in 2001, 100 bucks in your pension: that was pretty decent. That was helping you out. But the problem is something that cost 100 bucks back in 2001, today costs $188.”

“So in effect, you’ve basically lost close to 50% of the value of that pension just because the pension has stayed static while costs have gone up to rise,” he continued. “For this group of public servants, their pension couldn’t keep up, and I know that created a real hardship for many.”

The first payment they receive will come this month, Shapiro explained, would be a retroactive COLA increase backdated to July 2026. 

“And that will go out on or about September 30th through direct deposit, the way that pensions are always delivered, so you don’t have to do anything different,” he said. “You’re not going to have to do anything special. The money will be directly deposited.”

“Then going forward, retirees will see up to a 25% increase in their monthly payments each month,” he added. “That’s over about $2,000 more on average back in their pockets every single year.”

Shapiro and his fellow Democrats have touted the COLA increase since the latest budget was signed. However, various Republican lawmakers have also celebrated it as a win for the Keystone State. 

“These retired men and women dedicated years to serving our #communities as #Pennsylvania teachers, school district employees, state employees and certain retired municipal firefighters and #PoliceOfficers,” Senate Majority Leader Joe Pittman, a Republican, wrote on social media. “The COLAs are fully funded through existing interactive gaming tax revenues, ensuring these benefit enhancements have no impact on state, school district or municipal taxes.” 

“The legislation directs a portion of those revenues to fund the pension increases and reimburse municipalities for the municipal benefit adjustments, with any remaining funding continuing to support an existing grant program,” he added.

Last week, state Sen. Joe Picozzi, a Republican representing parts of Philadelphia, said that he and fellow GOP state Sen. Tracy Pennycuick visited Lower Salford Police Department to promote the COLA increase. 

“For 24 years, these retirees went without an adjustment while the cost of living continued to rise. They dedicated their careers to serving our communities and our Commonwealth, and they deserve a retirement that reflects that service,” Picozzi wrote. “I was proud to co-sponsor the legislation that helped make this adjustment a reality.”

“I’m proud we finally got this done, but this is just the beginning,” he added. “It shouldn’t take another 24 years for our first responders and public servants to receive the next COLA — and I’ll keep working to make sure it doesn’t.”

This story was first published by the The Center Square, a statehouse and statewide news news organization.