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A long-awaited pension increase is approved for thousands of Pennsylvania retirees

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More than 80,000 retired Pennsylvania teachers, police officers, firefighters and other public employees will soon receive long-awaited increases in their monthly pension checks under the newly approved 2026-27 state budget.

The cost-of-living adjustment, included in the $50.8 billion spending plan signed into law Sunday, marks the first pension increase for many retirees in more than two decades.

Public school teachers and other state employees who retired before July 2, 2001, will receive tiered monthly increases based on their retirement date. Retired police officers and firefighters who have been retired for at least five years will receive monthly increases ranging from $50 to $300, depending on how long they have been retired.

Retired teachers and state employees are expected to begin receiving the additional payments this month, while retired police officers and firefighters will see the increase beginning next month.

The adjustment has been a top priority for retiree advocates and lawmakers from both political parties for years. Supporters say many older retirees have struggled to keep pace with rising living costs because their pensions have remained largely unchanged despite decades of inflation.

The last cost-of-living adjustment for police officers and firefighters was approved in 2002. Since then, inflation has increased consumer prices by roughly 86%, according to the U.S. Bureau of Labor Statistics.

Many public school retirees also missed out on pension enhancements approved under Act 9 of 2001, which benefited more recent retirees but did not apply retroactively.

State officials estimate the pension increase will cost about $168 million annually. Rather than placing the burden on municipalities or school districts, the state will fund the increases using revenue generated by the existing tax on internet gaming.

Lawmakers from both parties hailed the pension adjustment as a long-overdue measure of fairness for public servants who spent decades serving Pennsylvania communities.

The average age of retirees eligible for the increase exceeds 80 years old in the state’s two largest pension systems, underscoring the urgency many advocates attached to the proposal.

Source: Phila Inquirer

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