Malagari’s long-fought-for COLA for retired teachers & public servants signed into law
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 13 – After years of advocacy, state Rep. Steve Malagari, D-Montgomery, announced that a cost-of-living adjustment for tens of thousands of Pennsylvania’s longest-retired teachers and public servants has been signed into law as part of the newly enacted state budget.
The COLA, 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 COLA 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.
“These are the men and women who shaped our state’s and our children’s futures, and for more than 20 years, they were left trying to get by on pensions that didn’t keep up,” Malagari said. “The last COLA these retirees saw was in 2001. 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.”