Malagari legislation delivers long-awaited COLA to retired teachers as part of new state budget that also boosts police officer & firefighter pensions
More than 60,000 pre-2001 retirees to receive first pension increase in over two decades
Rep. Steve Malagari July 13, 2026 | 3:25 PM
LANSDALE, July 15 – After years of advocacy, state Rep. Steve Malagari, D-Montgomery, announced that cost-of-living adjustments for more than 60,000 of Pennsylvania’s longest-retired teachers, public servants, municipal police officers, and firefighters have been signed into law as part of the newly enacted state budget.
The COLA for retired teachers and state employees, introduced by Malagari as H.B. 411, was included in the Fiscal Code legislation that passed alongside the General Appropriations budget for 2026-27. The same goes for H.B. 1289, the bill that provides the COLA to retired municipal police officers and firefighters.
The legislation will provide increases of 15% to 24.5% for the pensions of more than 60,000 retirees of the Public School Employees’ Retirement System and State Employees’ Retirement System who retired before July 2, 2001. These so-called “pre-Act 9” retirees have not seen a pension increase in more than two decades, even as inflation has cut their buying power nearly in half.
In addition, the budget provides long-overdue cost-of-living adjustments for retired municipal police officers and firefighters who receive pensions through local retirement systems, helping to ensure they’re able to meet the costs of living in their retirement.
“These are the men and women who shaped our state’s and our children’s futures, and kept us safe – and many of them have been trying to get by for the past 20 years on pensions that didn’t keep up. For retired teachers, the last COLA they saw was in 2001,” Malagari said. “Since then, the cost of medicine, groceries and housing has only gone up. Today, we’ve finally made good on our promise to these public servants in their final years.”
Malagari first introduced his legislation in the 2023-24 session and reintroduced it this session as H.B. 411, where it passed the state House with bipartisan support, 131-72. This year’s Fiscal Code includes a dedicated funding structure that addresses fiscal concerns while still delivering meaningful relief to retirees, most of whom are in their 80s and 90s.
The average PSERS retiree affected by the COLA will see an increase of roughly $250 per month, while SERS retirees will see about $195 more per month, according to prior actuarial estimates.
“I want to thank the retirees, advocates and organizations who never stopped fighting for this,” Malagari said. “This is their win as much as it is ours.”
WHAT COMMUNITY LEADERS ARE SAYING:
“The brave men and women of the Montgomery County FOP Lodge #14 offer our most sincere thanks and gratitude to Rep. Steve Malagari for his unwavering dedication and support of active and retired law enforcement officers across Pennsylvania,” said Dan Diedel, Jr., president of Montgomery County FOP Lodge #14. “It's been nearly a quarter-century since retired Pennsylvania law enforcement officers received a cost-of-living adjustment in their pension. Every American feels the sting of skyrocketing prices on a daily basis, and his support and hard work to secure passage of this legislation will help those retired officers ease that burden by providing a much needed and well-deserved cost of living increase.”
“On behalf of the forty thousand members of the Fraternal Order of Police, Pennsylvania State Lodge, I would like to thank Rep. Steve Malagari for his tireless work in securing a much-needed cost-of-living adjustment for our retirees,” said Joseph Regan, president of the Fraternal Order of Police, Pennsylvania Lodge. “The legislation he sponsored provided increases for our retired law enforcement officers from municipal and state agencies under their respective pension plans. Our membership appreciates Rep. Malagari’s continued support of Pennsylvania’s law enforcement!”
"Our retired Pennsylvania State Troopers devoted their careers to protecting the citizens of this Commonwealth," said Stephen Polishan, president of the Pennsylvania State Troopers Association. "Rep. Malagari recognized that these men and women should not see the value of their earned pensions diminished by decades of inflation. His commitment to honoring the service of Pennsylvania's retirees deserves recognition and appreciation."
“We greatly appreciate the governor’s efforts to work with the legislature, especially the lawmakers who led the charge, most notably state Rep. Steve Malagari of the 53rd Legislative District, a prime sponsor of this legislation to secure the much needed COLA for our retired members, who dedicated decades of their lives to protecting their neighbors and communities and have not seen a cost of living increase in their pensions in over 20 years,” said Bob Brooks, president of the Pennsylvania Professional Fire Fighters Association. “Folks like George Magaro who served the City of Bethlehem for over 31 years and will now see an additional $3,600 a year in his pension. We are proud to represent these retirees and appreciate Governor Shapiro’s commitment to our members across the commonwealth.”
“This week, policymakers have taken decisive action to provide greater retirement security to 54,000 retired educators and public servants who dedicated their lives and careers to their communities,” said Aaron Chapin, president of the Pennsylvania State Education Association. “We thank Rep. Malagari for his leadership and every lawmaker who voted for a COLA for pre-Act 9 retirees. This has been a major priority for PSEA for years, and we appreciate the hard work of leaders like Rep. Malagari who finally made it happen.”
“Our retirees devoted their careers to serving the people of Pennsylvania, and for far to long they were asked to shoulder the burden of rising costs without any adjustment to their pensions,” said Jeanne Weaver, president of the Retired Public Employees of Pennsylvania Chapter 13, a member-run affiliate of AFSCME Council 13 that represents more than 11,000 retired public employees. “This victory has been years in the making.”