COLA Effort Updates

Update 3/4/26:

Governor Shapiro delivered his 2026-2027 budget address to a joint session of the legislature on Tuesday, February 3. The overall proposed spending number is $53.3 billion with few new revenue streams. A COLA for pre-Act 9 retirees was not included in his proposal; however, the Administration has indicated it would support a COLA should it pass the legislature.

Over the past two decades, the cost of essential goods and services has risen dramatically, while pensions have remained the same or, in some cases, effectively declined due to annual increases in healthcare costs. According to Consumer Price Index (CPI) data tracking price changes since the early 2000s, key categories such as housing and medical care have more than doubled in price, and the broader food and beverage category has also increased by over 100% over this period.

Source: https://www.advisorperspectives.com/dshort/updates/2026/02/20/inside-the-consumer-price-index-january-2026

Both House and Senate Appropriations Committees are conducting budget hearings through March, this is followed by months of policy discussions – which will include the COLA – that lead up to the final budget in late June. This collaborative budget process creates an important opportunity for COLA advocates to make the case to legislators and key staff. We need to highlight the financial challenges facing retired members and urge inclusion of a COLA in the final budget.

Use the link below to send a message to our Senators urging their support for a COLA for pre-Act 9 retirees.

https://www.pasr.org/legislative-form/?id=20

Update 1/22/26:

Update from our lobbyists:

As we enter our legislative advocacy work for 2026, the COLA for PASR members remains our absolute top priority. Last year brought both progress and frustrations in relation to the COLA. While the state House again moved a COLA bill and the state Senate saw a plan introduced to not only enact the COLA but do so with a payment mechanism, the concept was not included as part of the 2025-26 state budget.

Enacted almost five months late, the $50 billion state budget was signed by the governor shortly before Thanksgiving. While new spending was included in the new spending plan for the current fiscal year, many hotly debated policies did not make the final cut. Concerns related to the COLA still center on costs and impacts to the pension systems’ unfunded liabilities. And while the impact of the COLA would be rather insignificant on both the state’s overall spending and the health of the pension systems, these hurdles remain.

Lawmakers have been very hesitant to increase state funding in “optional” spending areas because of long-term financial concerns — also touted as the state’s structural deficit. Since the COLA falls into this space, it has continued to be pushed aside.

The PASR team has kept its advocacy efforts strong through the holiday season. Outreach to state lawmakers and the governor’s office on the need to support retired school employees has not waned. In working with our lobbying team at One+ and others who are actively working on this issue (PSEA, AFSCME, etc.), we have continued to tell the stories of those struggling after a lifetime of public service; those most in need of this COLA.

The issue has — again — caught the attention of the news media, as ABC 27 did a feature story on the issue in December. Citing the concerns and inconsistencies that exist with state lawmaker getting annual COLAs while retirees see their buying power continue to decline with no action, the ABC 27 story made one very strong point: “these former teachers and troopers who took care of so many deserve better.”

With the House and Senate preparing to start voting sessions again this month, and the governor planning to unveil his budget proposal in early February, PASR members should have plenty of opportunities to advocate for the COLA in 2026. This should remain a June 2026 budget priority, and PASR members must convey this message to lawmakers.

House Bill 411 (Rep. Malagari — sponsor) remains in the Senate Finance Committee. This measure has already passed the House with significant bipartisan support. Senate 721 (Sen. Farry — sponsor), which also remained in the Senate Finance Committee, includes the payment mechanism that should quell concerns from lawmakers balking at pension liability issues. Both again are broadly supported by both Republican and Democratic lawmakers. It’s worth noting that another bill has been introduced in the House to include the payment mechanism. House Bill 1767 (Rep. Tomlinson — sponsor) was filed as another option to help bring this matter to a close and support PASR members.

As we work to advocate for the COLA, PASR members are encouraged to reach out to their elected officials and urge not only support, but action on the COLA in this year’s budget cycle. This effort will only come to a head when lawmakers supporting the measure demand its enactment. We know the COLA is supported in the state House, as it has passed in each of the last two sessions. And we are very confident it will pass the Senate too — with strong bipartisan support — if it is given fair consideration.

We have made great progress on this matter in the last few years.

It is important that we all remain focused on pushing lawmakers to finally “get it done” in 2026.

 

Update 1/12/26:

As many of our members know, our efforts to secure a COLA for PA public school retirees are directly tied to the actions of the PA General Assembly.

PASR has been working diligently to bring attention to the importance of a COLA for retirees, especially those who have gone decades without one. We have held numerous meetings with legislators, the Lieutenant Governor, and the Governor himself; organized in-person rallies at the Capitol; and secured public support from at least ten Senate Republicans. We continue to encourage members to reach out to their local elected officials in Harrisburg to urge them to support the COLA.

Our legislation has passed the House three times over two sessions with strong bipartisan support, and both the House and Senate currently have proposals that include a viable payment mechanism. However, the COLA remains in the state Senate Finance Committee, awaiting consideration.

House Bill 411 was reported to the Senate Finance Committee after it was strongly endorsed by a vote of 131–72 in the House. The Senate Finance Committee is chaired by Senator Scott Hutchinson, who has previously expressed concerns about the cost of a COLA and its impact on the pension systems’ unfunded liabilities.

Additionally, Senate Bill 721 is also in the Senate Finance Committee. This bill would provide a COLA while including a payment mechanism designed to protect the pension systems and address concerns about unfunded liabilities. SB 721 is sponsored by Senator Frank Farry (Republican — Bucks) and has the support of several other Senate Republicans, as well as most — if not all — Senate Democrats. Despite this bipartisan backing, Senator Hutchinson has also expressed concerns about this bill.

Without Senator Hutchinson’s endorsement or willingness to move the legislation, both bills will remain dormant in committee. As majority chairman, he controls the committee’s voting calendar. Historically, any pension-related COLA has been included as part of a broader budget deal rather than moving independently. Should this remain the case, proponents of the COLA would not need Senator Hutchinson to advance the bill directly. However, his cooperation would make passage much more likely and help pave the way toward meaningful progress.

How You Can Help:
We are asking for your help to keep this issue at the forefront of the legislature’s discussions. The more our legislators hear from those directly affected — retired educators, school staff, and their families — the clearer the message becomes: a COLA is not a luxury; it is a matter of necessity, fairness, and dignity for those who dedicated their lives to public education.

We want to emphasize, we’re not asking you to do our work for us. We continue to have discussions directly with legislators, but we know that a variety of voices – especially those who know the impact a lack of COLA has – stand out far more than a single organization alone. Your personal stories and outreach help legislators see a different side of this issue and understand why a change is needed.

We believe the most effective approach is for our members to contact their state senators and urge them to go to their leadership and request that COLA legislation be moved, whether that is the bill that passed the House or Senator Farry’s legislation. We need to reiterate that this is the time for this legislation.

PASR’s advocacy efforts on the COLA will continue in the coming months. Our goals will be to focus our attention on Governor Shapiro and his team in hopes of including the COLA in his February 2026 budget address, while working with members of the state Senate to encourage action on SB 721.

While we all remain frustrated with the lack of closure on a matter that appears to have strong legislative support. We have made it further than we have in many years – let’s keep this momentum going. Together, we can continue to push this effort forward. We deeply appreciate your membership, patience, and continued advocacy.

Please be assured that PASR has not and will not give up on this issue.

 

Update 12/10/25:

PASR Retiree Jean Young and PASR Executive Director Kristen Holjes met with ABC27 News anchor Dennis Owens yesterday about our COLA. Watch the interview HERE.

 

PASR has a new approach, and we want our members to be the first to know. Not a member? Join today to receive COLA updates directly in your inbox as soon as they are released.  https://www.pasr.org/membership/application/ 

Update 11/14/25:

On Wednesday, November 12^th, state lawmakers and Governor Shapiro finally reached an agreement on a new state budget for the 2025-2026 fiscal year. Due this past July 1, the new budget was enacted five months late.

While the $50.1 billion spending plan addressed many important needs, it did not include a COLA for retired school employees. The outcome — although expected given the continued impasse and lawmakers’ demand to control spending — is deeply disappointing for PASR, its members, and the coalition of other organizations advocating for this important inflationary adjustment.

Over the last three years, the state House of Representatives has passed a pre-Act 9 COLA on three occasions — each time with strong bipartisan support. The bills have continually failed to receive consideration in the state Senate. However, this does not mean there is no support for the concept among our state senators.

Several bills in the state Senate would provide PASR members with the COLA they so desperately need. The most notable, Senate Bill 721, includes both the COLA and a payment mechanism to help alleviate concerns among lawmakers on cost-effectiveness and impact on the pension systems’ unfunded liabilities. Led by Senator Frank Farry and an array of colleagues who support the COLA, Senate Bill 721 remains in the Senate Finance Committee and has yet to be considered.

Seven Senate Republicans have signed on to SB 721. Additionally, the COLA concept has been broadly supported by members of the Senate Democratic Caucus. While nothing is ever certain until lawmakers vote, it is believed that if considered before the state Senate, SB 721 would pass.

We all remain frustrated with the lack of closure on a matter that appears to have strong legislative support. PASR members and supporters should continue to reach out to their state Senators to request support for a COLA for retired school employees. The continued delay on this issue only hurts those whose lives have been dedicated to public service via education.

 

Please be assured that PASR has not and will not give up on this issue. 

PASR advocacy efforts on the COLA will continue in the coming months. 

 

Update 8/1/25:

We wanted to provide you with a quick update on our COLA efforts. As of our last communication on July 14^th, there has been no change in the legislative status. The House has advanced the COLA discussion, and we are now waiting for the Senate to take the next step forward.

While this is encouraging progress, please remember that nothing is guaranteed; the outcome is now in the Senate’s hands.

PASR encourages you to continue the outreach to your local Senators. Your efforts are making a difference. Keep making noise, we are being heard.

How you can help:

1. If you haven’t done so already, please complete the message
2. Ask family, friends, fellow retirees, and neighbors to do the same. Every Voice Matters.
3. Continue thanking legislators who have shown support for the COLA.

To our PASR members: Thank you. You make this work possible—thank you for standing with us. We truly couldn’t have come this far without you.

If you’re not yet a PASR member, we invite you to join us. Your participation helps strengthen our mission. https://www.pasr.org/membership/application/ 

PASR is the only organization that advocates solely for retired public school employees — all PSERS annuitants.

Thank you for standing with us, and with each other. PASR will continue to advocate for fairness and dignity for our retiree

An Op-Ed From Our Executive Director (7/29/25):

As state lawmakers approach the end of Pennsylvania’s fiscal year and slowly inch closer to a deal on the annual budget, tens of thousands of retired school employees await their fate on a long overdue cost-of-living adjustment.

For more than two decades, seniors – most of whom are in their 80s – who dedicated their lives to their communities and the education of students throughout the state have waited for lawmakers to act on a COLA. While many others have been rewarded with retirement and salary adjustments to combat inflation, those who retired in before 2001 – known as the Pre-Act 9 retirees – have been left behind.

But will this year finally be different? Will lawmakers and Governor Shapiro do what’s needed for these retired public servants?

We have seen progress in recent years, but to no avail. Earlier this spring, the state House of Representatives passed another bill supporting a COLA. House Bill 411 (formerly HB 1416) sponsored by Rep. Steve Malagari passed with overwhelming bipartisan support.  This is the third time in the past two legislative sessions that the state House has passed legislation giving a cost-of-living adjustment to Pre-Act 9 retirees.

And while proposals have stalled in the state Senate in the past due to concerns over costs, we now have a proposal in that chamber that not only enacts the COLA but offers a payment plan as well.

Senator Frank Farry took the lead on this effort and introduced Senate Bill 721. Now, with a strong contingent of bipartisan senate colleagues joining Farry on the plan, it’s clear there is significant support in that chamber as well.

Inflation has grown by more than 75 percent since the last COLA. The average retiree impacted by the proposal receives an annual benefit of $20,000 or less. That’s simply not enough to keep up with today’s rising costs.

There is no reason that these dedicated public servants should have to wait for another budget. A COLA would not only provide financial relief but also send a powerful message of gratitude to those who have dedicated their lives to the betterment of our education system that affects every member of the General Assembly and the people they represent.

All those who advocate for this COLA know budget decisions come with challenges. Crafting a spending plan to support the 13 million people of Pennsylvania is never easy. But neither is living on a 2002 income in a 2025 economy, and that needs to be considered.

We know the state House members support this effort. It appears a significant segment of the state Senate does as well. If Governor Shapiro can add this to his agenda supporting Pennsylvania seniors and public servants, then we can finally give these people the support they need and deserve.

The pieces are in place to finally get this done. The opportunity for advancement is here. And on behalf of the 30,000-plus seniors represented by the Pennsylvania Association of School Retirees, we are imploring those at the negotiation table this year to make the COLA an essential component of the new state budget.

Update 7/14/25:

We are encouraged that Governor Shapiro has prioritized seniors in several areas, such as prescription affordability and property tax rebates. Still, retirees like ours have not yet received full support for a COLA. That must change.

The House has already acted by passing HB 411 with bipartisan support. Senator Farry’s SB 721 offers a fiscally responsible solution, indexing modest COLAs to Pre-Act 9 retirees. These proposals represent less than 0.002% of the state budget — a minimal cost for a major impact.

The state budget is still being finalized, and this could be our last, best chance to push for a meaningful cost-of-living adjustment (COLA).

Every voice could make the difference in ensuring our legislators understand just how essential COLA is for our retirees. We’re asking everyone to join us in reaching out right now. The more they hear from us, the stronger our message becomes.

How you can help:

1. Email your Senators, please use this link to send a message:
2. Ask everyone you know to email their legislators. (Feel free to share this page!)
3. Continue to thank your legislators who are in support of the COLA. Gratitude goes a long way in building support!

We’ve come this far together. Let’s finish strong.

Update 6/26/25:

Thank you all for the extraordinary outreach you’ve already done—your voices have brought us this far in the fight for a much-needed COLA for our retirees. Your efforts are being heard! Now is the perfect time to double down.

Both chambers of the Pennsylvania legislature are back in session this week, and we want to make sure they’re hearing from us.

We’re asking you to do two quick but important things:

1. Send the updated message to your legislators, asking them to support SB 721 (CLICK HERE to read SB 721). 
We’ve crafted two versions of the message—please choose the one that best fits you:

• If you are a Pre-Act 9 retiree, use this version that shares your personal stake in the issue.
• If you are a post-Act 9 retiree, an active member, or believe in the cause, use this version that supports your fellow retirees and emphasizes the broader impact on the profession and the state.

2. Send a thank-you email to legislators who co-sponsored the COLA bill.
We’ve also prepared a thank-you message to acknowledge and encourage the Senators who are already standing with us. Gratitude goes a long way in building support!

This final stretch is critical. Your voice still matters. Please take a few minutes to send your emails and remind legislators that now is the time to act.

If not now, when?

 

Update 5/22/25:

We are asking our members and supporters to contact their state Senators to make two requests:

1) Sign on to the Farry Bill, which would use the interest from the Rainy Day Fund to pay for the COLA; and

2) Advocate that Senate Leaders include the COLA as part of budget negotiations.

It’s important to remember to remain cordial and respectful with and in these conversations/requests.

Every Voice Matters.

If you’re willing to support our efforts, please use this link to send a message:

Here are the primary bills: You can read more about them and their progress by clicking on them individually.

• SB 563 (Sen Muth) — 10-20% COLA for pre-Act 9
• SB 564 (Sen Muth) — 15-24.5% COLA for pre-Act9
  • Both are COLA proposals at varied rates.
    • SB 564 is the same as the House Bill that has passed several times, including this year in the House as HB  411
• HB 408 (Deasy) — 10-20% COLA for pre-Act 9
• HB 411 (Malagari) — 15-24.5% COLA for pre-Act9 – passed in the House (update 4/11/25) below
• Farry Proposal (COLA with Payment)
  • The Farry bill continues to get attention, and it is building a list of cosponsors.

As always, PASR is determined to get this very long-overdue COLA passed for our members. Our lobbyists are meeting with coalition partners and the House Democrats next few weeks to talk about how to help advance this in the Senate during budget discussions.

 

Update 5/14/25:

Senator Farry has circulated his COLA legislation co-sponsorship memo SCO 46557, which includes a payment mechanism for interest earnings from the State Rainy Day Fund. Five additional Senate Republicans joined Farry: Baker, Robinson, Bartolotta, Pennycuick, and Brown.

We will have more updates soon!

 

Update 4/11/25:

We are excited to share some good news. HB411 passed the PA House with a vote of 131-72!

This step forward wouldn’t have been possible without your outreach and dedication. By contacting your representatives, you help amplify the voices of over 60,000 retirees in Pennsylvania who have waited more than two decades for a COLA.

You can see how your representative voted here: https://www.palegis.us/house/roll-calls/summary?sessYr=2025&sessInd=0&rcNum=116&sort=party

If your representative voted Yes, please consider sending them a quick thank-you note. Let them know you appreciate their support of retired public servants; this will truly make a difference and reinforce the importance of their vote.

If you are willing to support these efforts, please go to: https://www.pasr.org/legislative-form/?id=8 

Now, we turn our focus to the Senate, where the bill needs support to move forward. We encourage you to send a message to your State Senator and urge them to support HB411 as passed by the House, especially Senate Republicans whose House members in the same district voted in favor of the bill.

Every voice matters. Together, we can advocate for fairness and dignity for those who dedicated their careers to serving Pennsylvania.

 

Update 3/24/25:

“I live by two words: tenacity and gratitude.” – Henry Winkler

In the face of falling short of your goal, it is easy to lose your drive and your appreciation for the issue and people who have supported you along the way. This group has been advocating for a cost-of-living adjustment (COLA) for retired school employees for quite some time and the frustration and disappointment in its lack of enactment is understandable. But, we must remember the milestones we reached in pursuit of our goal.

It is important to note that in the 2023-2024 legislative session, PASR, and its COLA allies, advocated for and received support for the issue with the passage of HB 1416 (vote of 140- 63)  in the Pennsylvania House of Representatives in November 2023. It was also prioritized in state budget negotiations this past June and passed again by the House as an amendment to HB 1379 (vote of 135-67) in October 2024.

Although we are very disappointed that the issue did not cross the finish line during the last legislative session, it advanced as a priority issue and moved further than it had ever before. For this, we must express gratitude to our bill sponsors (Rep. Malagari, Rep. Deasy, Senator Muth and Senator Kane), our supporters, and vocal advocates.

However, our work is not done.

The 2025-2026 legislative session officially began on January 7, and work has commenced to advance the COLA issue once again. Representatives Malagari and Deasy reintroduced their legislation in the House of Representatives. The bills, HB 411 (Malagari) and HB 408 (Deasy,) were passed via party line vote in the House State Government Committee on March 17.

It is important to note that the House currently stands at 101-101 due to the tragic passing of Rep. Matt Gergely. A special election to replace Rep. Gergely is scheduled for March 25, so no action on legislation is anticipated before that date.

We have also had positive conversations in the Pennsylvania State Senate. The COLA legislation stalled in this chamber last session. Many legislators voiced their support for a COLA and recognized the need and commitment to our retired school employees, but the challenge was identifying a funding mechanism that is both available and sustainable. We have made progress in these discussions and are continuing to provide suggestions to legislators and their staff on potential sources of revenue.

While we are working hard inside the walls of the Capitol, it is imperative to continue our drumbeat of support from our members. Your legislators need to continue hearing from you, their constituents, that they must take action now on a cost-of-living increase for retired school employees. So, please remain tenacious in communicating with legislators about the need for and your support of COLA legislation.

We will continue to keep you updated on the progress of our efforts. Please continue to share any feedback you receive from legislators with PASR staff. We remain committed to this issue not only for our pre-Act 9 annuitants, but our entire membership. This remains an important first step to addressing cost-of-living adjustments for all retired school employees.

Thank you for all your efforts to support the passage of COLA legislation, and please remain grateful and tenacious in this fight!

 

Update 12/16/24:

PASR’s top priority is securing a COLA for all PSERS annuitants and we will continue to advocate for that in 2025! Over the past year, the PA General Assembly, unfortunately, was not receptive to a COLA for all, but they did express an openness to adopting a COLA for pre Act 9 annuitants. We had high hopes that this openness would result in legislation getting passed, but the Senate refused to vote on the bill.

PASR continues to believe that if a Cost of Living Adjustment (COLA) legislation could receive a vote on the full floor of the Senate, the COLA bill would pass as it did in the House of Representatives. Consequently, we will continue to fight for a COLA. It seems unlikely that any action will be taken in the lame duck session of the General Assembly, so we will need to reintroduce legislation in 2025, and that is exactly what PASR plans do!

After the PA Senate decided not to include a COLA in the budget, PASR participated in a press conference in October to promote a COLA. We were joined in the rotunda by 40 PA Representatives and 7 Senators, several of which gave speeches supporting a COLA. PASR members in attendance then visited the offices of dozens of legislators to urge them to support a COLA. We do believe that we made some progress in persuading some reluctant legislators to support a COLA. Specifically, several legislators expressed increased support for a COLA under the PASR proposal to use interest from the $6 billion “rainy day” fund to pay for the COLA. Consequently, our efforts to use this funding mechanism may have more support in 2025 than it did in 2024.

One other reason for hope has also arisen in the closing days of this legislative session. Representative Malagari amended his own legislation (HB 1379) to include a COLA for PSERS and SERS annuitants. HB 1379 would provide a one time payment to municipal pension systems to help provide a COLA to some retired firefighters and police officers. Representative Malagari sponsored HB 1379 and then secured a vote to amend it to include the language from HB 1416 which would provide a COLA to pre Act 9 PSERS and SERS annuitants. It is the hope of PASR that this joining of the request for a COLA may yield some votes in favor of a COLA since some legislators have favored  giving funds to municipalities to provide a COLA for firefighters and police officers. As such, tying these two causes together may help to solidify a majority that favors passing both COLA proposals.

PASR is, of course, more than disappointed and frustrated that a COLA was not secured this year, but PASR also wants to highlight that we did meet with some success. No bills had ever even been voted out of committee in either chamber of the General Assembly over the past 21 years, yet our legislation, HB 1416, was passed out of committee and out of the full House of Representatives. Moreover, HB 1416 was seriously considered in the budget negotiations this year. Indeed, the need for a COLA was even highlighted on NBC nightly news national broadcast. PASR has formed stronger relationships with legislators and made legislators much more aware of the need for a COLA. Furthermore, PASR’s partners such as PSEA, AFSCME, SEIU, and many other organizations are fully aligned with our efforts to secure a COLA. In other words, we start 2025 in a strong position to continue to fight on your behalf.

The most important portion of our efforts has been our members voicing their concerns to their legislators! We heard from legislators that they heard from our members and it is your messages to these legislators that pushed open many doors for PASR to be able to meet with legislators, to secure sponsors for the legislation, and to build a coalition to continue to support a COLA. THANK YOU, THANK YOU, THANK YOU PASR members for all of your efforts and for your support!! With your continued support, we hope to announce that a COLA has been secured in 2025!

 

How to locate and contact your State elected officials:

PASR humbly requests that everyone join our efforts to make our voices heard! Please reach out individually and coordinate with local groups to enhance your efforts.

https://www.palegis.us/find-my-legislator

If you do not know who currently represents you, your address will identify that person.

Once you locate your state rep – here are the various ways to contact them:

1. Phone call to the legislator’s local office.
2. Phone call to the legislator’s Harrisburg office.
3. Personal visit to legislator’s local office.
4. Email or write a letter.
5. Communicate with them on their social media accounts such as Facebook and X (Formerly Twitter).
6. Write editorials for your local news sources.

 

For “Talking Points” to use in your communications, please reach out to our office at 717-697-7077 or [email protected]. We have a list of themes for you to use. Pick one that is comfortable for you, or you can use a basic suggested message.

When Communicating with Members of the Pennsylvania General Assembly

1. Please do not be overly “aggressive” or demanding in asking for support for a COLA (Cost of Living Adjustment). Being respectful is a better methodology.
2. Please mention that we (PASR) recognize the challenges that lawmakers/elected officials have each year when it comes time to pass the state budget. We understand that this is not a simple or easy request, and it will cost money.
3. Please highlight your personal situation and need for a COLA in light of the 75% inflation since 2000 that has gobbled up your purchasing power.
4. Others have seen increases since 2002, but not public school retirees who so richly deserve to be able to live a dignified retirement.

 

The positive economic impact on Pennsylvania of pension payments made to retired state workers and more evidence that a COLA for PSERS annuitants would benefit everyone, if only we could get the General Assembly to listen! Please visit https://www.nirsonline.org/wp-content/uploads/2021/01/pensionomics2021_pa.pdf for more information.

As part of PASR’s continuing effort to get our members a COLA and provide current and relevant information, this page is designated to do just that.  Below you will find links to important recent news articles that may affect the process of receiving a COLA.