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House State Government Committee approves COLA for some pre‑Act 9 public retirees, 14‑12
Summary
The House State Government Committee voted 14‑12 to report House Bill 408, which would provide a 10–20% cost‑of‑living adjustment for certain pre‑Act 9 public school and state retirees, after adopting a technical amendment that aligns funding provisions with existing actuarial methods.
Harrisburg — The House State Government Committee voted 14‑12 on March 17 to report House Bill 408 as amended, a measure that would grant a 10% to 20% cost‑of‑living adjustment (COLA) to eligible pre‑Act 9 retirees in the Public School Employees' Retirement System (PSERS) and the Civil Service Retirement System (CSRS).
The committee, called to order by Joe Webster, who identified himself as a “surprise pinch hitter” for Chairwoman Carol Hill Evans, considered and adopted a technical amendment, A0077, before taking a roll call. The amendment was described as “technical” and intended to align CSRS funding provisions with the actuarial cost method in Title 71.
The bill drew extended debate in committee. Representative Diamond argued the state treats pensions as legally binding contracts, saying, “Pensions are viewed legally as contracts between the state and as an employer and each public employee.” He warned that changes that increase benefits without corresponding funding would fall to taxpayers.
Several members opposed the bill on fiscal grounds. Representative Brown noted the state’s large unfunded pension liability, saying Pennsylvania faces an “underfunded liability of around $60,000,000,000” and that pension contributions already consume a large share of state spending. Representative Bonner and others cited employer contribution rates and the strain on the state budget as reasons to vote no.
Supporters said the adjustment is intended to help long‑serving public employees who have not received a COLA in decades. Representative Kenyatta said retirees “are not out to get rich. They are out to survive,” and argued that many retirees have been living on low, fixed incomes while the Commonwealth underfunded its side of pension contributions.
The committee recorded its roll call after debate. The motion to report House Bill 408 as amended passed, with 14 members voting yes and 12 voting no. The bill will be reported out of committee for further consideration by the full House.
Votes at a glance: The committee adopted amendment A0077 (technical amendment) by voice and then voted to report House Bill 408 as amended (roll call 14‑12).
