Why PARSE is asking state General Assembly to pass bills House Bills 408 and 411

The cost of living and paying for the essentials continues to go up every day. For individuals living on a fixed income, soaring costs of goods and services, along with utilities and health care can pinch their wallets to the breaking point. They are left with the horrible position of choosing whether to pay for groceries or electricity or life-saving medicines.  

For many retirees, there isn’t a lot of wiggle room when it comes to their budgets. They have done the work and paid their dues. They put their faith behind the notion that if they worked hard, contributed toward their employee-sponsored retirement plans, they could retire with enough savings and peace of mind. Unfortunately, that isn’t always the case. This is certainly true for the retired state government and public teachers that I represent as the president of the Pennsylvania Association of Retired State Employees (PARSE). 

PARSE is a non-profit organization whose mission is to serve and advocate for retired state government employees. For over 50 years we have been advocating for our members – who live in each region of the Commonwealth.  

Our members were dedicated workers – teachers and government employees who literally kept the cogs of state government and our Commonwealth’s public education systems working and operational. By and large, the majority of our members retired with modest pensions built over time through years of hard work and dedicated public service. 

Historically, the state General Assembly passed Cost of Living Adjustments (COLAs) on a fairly regular basis in order to keep up with inflation and rising costs. In fact, between 1968 and 2002, a COLA was implemented every 4 or 5 years for retired state employees that typically made up for at least half of the intervening rate of inflation.  

These slight adjustments helped retirees to stay afloat – ensuring that the benefits they were promised during their employment continued to fund their basic needs. However, for more than twenty years, pension benefits for state and public-school employees have been frozen. It should be noted that while pension benefits were actually increased for those current SERS (state government employees) and PSERS (public teachers) in Act 9 of 2001, nothing was done for those already retired.  

These so-called “pre-Act 9 retirees” (which number approximately 60,000 individuals throughout the state who on average are mostly in their 80’s and have pensions of less than $20,000) have not received a COLA since 2002 and 2003. 

The May 5, 2026 announcement from the State Employees’ Retirement System—highlighting a more than half‑billion‑dollar reduction in unfunded liability and corresponding decreases in contributions for newer employees. In simple terms, this means the system now has more than half a billion dollars above what it previously needed to meet its long-term pension obligations. 

This demonstrates that the system is stronger and more sustainable than it has been in years. This improved financial footing presents a clear and responsible opportunity for policymakers to act on long‑overdue fairness measures. Thousands of pre‑Act 9 retirees, many of whom have gone more than two decades without any meaningful adjustment to their pensions, continue to see their purchasing power eroded by inflation.  

It’s not an exaggeration to say that the current benefits they receive do not go nearly as far as they used to – leaving many struggling to pay for their basic needs. It’s not just anecdotal—in the more than two decades since these individuals received a COLA, costs have skyrocketed. Food and housing costs have gone up 88 and 85 percent respectively, while health care costs have risen by 111 percent. All the while, their retirement benefits have remained stagnant. 

A COLA for these individuals is long overdue. 

To that end, there are two bills currently working their way through the General Assembly that would go a long way toward right-sizing benefits for pre-Act 9 retirees. House Bills 408 and 411 would provide some much-needed relief for that small group of dedicated public servants. While the state budgetary impacts of these bills are nominal—a figurative drop in the bucket, if you will—they will go a long way in helping pre-Act 9 retirees make ends meet and afford basic essentials.  

To reiterate, the vast majority of these individuals are in their mid-80s and have a pension of approximately $20,000. I can’t stress enough how impactful this legislation will be for them. 

The pre-Act 9 retirees held up their end of the bargain. They showed up day in and day out and did their job. It’s time for the state to follow through on its commitment and responsibility to these retirees. I urge the General Assembly to pass House Bills 408 and 411 and get them to Governor Shapiro‘s desk for his signature. The time to act is now. 

Kristen Hand is the new president for the Pennsylvania Association of Retired State Employees