PHILADELPHIA (KYW Newsradio) — It’s been more than two decades since some state retirees and teachers have seen a cost-of-living adjustment in their pensions. Two bills advancing in the Pennsylvania House would change that, but they face some stiff opposition.
The cost-of-living adjustments would apply to state employees and teachers who retired before Act 9 of 2001, which changed the state pension benefits packages to the benefit of current employees but didn’t address current retirees.
“This distinction of a percentage increase isn't a whole lot of money for each one of those teachers. It's to recognize all the teachers that are pre-Act 9. They're in that scenario who gave their all to our children and have sat there without a COLA for over 20 years," said Montgomery County Democrat Joe Webster, a supporter of the bill who noted how much more expensive everyday life is now compared to 20 years ago.
But Republican Russ Diamond argues the pension was a contract that the employee agreed to when they started their employment, and while Pennsylvania lives up to its part of the bargain, “those retirees and their advocate groups keep coming to this building to seek benefits beyond those that they earned under their employment contracts.”
State government minority chair Republican Brad Roae says while the bill may be well-intentioned, it’s irresponsible.
“The pension system is an absolute train wreck of a mess the state finances. We're on the verge of doing a budget that has $6 billion of more spending than revenue. We can't afford to put more money into anything.”
The Pennsylvania State Education Association, the union representing public school teachers, says the legislature would pass pension cost-of-living adjustments every few years, but that stopped when they changed the pension system in 2001.
Similar bills passed the House last year but stalled out in the state Senate.