Pennsylvania has long stood by the belief that public service is among its most needed and appreciated professions, and those who opt to give back to their communities in this manner should be supported for their work.

The state’s public employees and those who work in the Commonwealth’s 500 school districts are provided with a pension for their years of service to the community. Together, the Pennsylvania State Employees' Retirement System (SERS) and the Public School Employees’ Retirement System (PSERS) oversee the pensions of nearly 750,000 current and former teachers and state employees.

Unfortunately, there is an entire class of retirees who dedicated decades of their lives to their communities who have been unable to experience retirement security.

Thousands of former state workers and school employees – commonly known as the ‘pre-Act 9’ class – retired in the early 2000s at much lower salaries than current employees. In fact, their average pension benefit is less than $20,000.  Further, they did not receive the pension benefit enhancements under Act 9 of 2001 and have now gone more than 20 years without a cost-of-living adjustment (COLA).

The average age of a pre-Act 9 employee is 83. Since their last COLA in 2002, we have seen inflation jump by more than 70 percent while their pensions have remained stagnant, causing many to struggle to afford basic necessities like food and medications.

We have an obligation to support these individuals for the work they have done in their communities. To help meet these needs, we will be sponsoring legislation that will provide a COLA for all pre-Act 9 employees in the PSERS and SERS pension systems.

While similar proposals passed the House of Representatives with bipartisan support last session, those proposals did not include a payment mechanism. To clear that hurdle, our proposal will also contain a plan to pay for this COLA by using interest payments earned on the state’s Rainy Day Fund.

Over the last several years, these annual interest earnings have far eclipsed $100 million and would serve as a responsible manner to pay for the COLA without negatively impacting the General Fund or the pension systems.

Pennsylvania made a commitment to these public servants decades ago, and it is incumbent upon us to continue that commitment by supporting a COLA for these individuals.

Please join us in supporting this legislation to provide a COLA to this unique class of retirees.