PHILADELPHIA (KYW Newsradio) — For the first time in more than two decades, some retired public employees in Pennsylvania will have their pensions adjusted for the cost of living.
Gov. Josh Shapiro signed the adjustment into law during a special ceremony Monday.
He said it's a long-overdue move that will help more than 60,000 public employees — like teachers, local law enforcement, and firefighters — who haven't seen their pensions adjusted for the rising cost of living since the early 2000s.
"The truth is the benefits in that pension were not keeping up with the cost of living, especially in recent years," Shapiro said.
"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."
Only public employees who retired on or before July 1, 2001, are eligible.
Harrisburg lawmakers passed the adjustment as part of the state's budget for the 2026-2027 fiscal year.
Retirees can expect the first adjusted payment this month, retroactive to July.
