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For Immediate Release
April 29, 1998

Senate Approves Cost of Living Adjustment for School and State Retirees

Harrisburg - Retired public school and state employees would receive their first pension cost of living adjustment (COLA) in more than four years under legislation unanimously approved by the Senate today, said Senator White.

Retired teachers and other public school employees, as well as retired state employees, would receive a graduated scale of percentage increases, depending on when the employee retired. White said those who have been retired the longest would receive the greatest increase.

"This is a fair and reasonable increase that takes into account the effect inflation has had in eroding the value of the employees' pension payment over the years," said White. "We have teachers who retired twenty and thirty years ago when salaries were very low who deserve a cost of living increase."

The COLA provided by the legislation, Senate Bill 1269, would take effect July 1, 1998. The last COLA for school and state employees was enacted in early 1994, said White.

Senator White noted that the Legislature held off in approving a COLA for public school teachers and state employees until unfunded liabilities within the State Employees Retirement System were eliminated.

"The Legislature did the right thing in delaying any COLA until the system was fully funded," said White. "Having done that, we can now continue to do the right thing and help these retirees recoup some of the financial security that inflation has taken away."

The measure was sent to the House of Representatives for consideration.