Notice

Bill to Mandate COLA for Retired Municipal Police and Firefighters Advances

House Bill 1379, sponsored by Representative Steve Malagari (D-Montgomery), advanced through the House Local Government Committee by a vote of 20-4 on Wednesday, September 25, 2024. This bill would mandate an ad hoc cost-of-living adjustment (COLA) to all retired municipal police officers and paid firefighters who retired before 2019. According to the Fiscal Note provided by the Independent Fiscal Office, this bill will cost municipalities approximately $285.2 million over the next 10 years to comply with this mandate. While advocates for the bill argue that Municipal Pension State Aid would provide most of the unfunded liability, the IFO estimates that Municipal Pension State Aid will only cover 25.9% of the estimated liability, leaving municipal governments to foot the bill. Previous iterations of this legislation have failed to pass due to the advocacy of municipal officials and the exorbitant cost that comes with this piece of legislation.

The cost-of-living-adjustment is determined by how long an individual has been retired. A retiree that has been retired between 5 and 10 years from January 1,2024 would receive a $75 per month increase, a $150 per month increase for retirees between 10-20 years, and $300 per month for retirees who have been retired for more than 20 years.

For more information about this bill or to contact your State Representative to oppose HB 1379, please visit PA General Assembly.