Youngstown Vindicator: Lawmakers: Retired teachers need new COLA

Youngstown Vindicator

January 23, 2022

https://www.vindy.com/news/local-news/2022/01/lawmakers-retired-teachers-need-new-cola/ 

Lawmakers: Retired teachers need new COLA

DAVID SKOLNICK

Reporter

dskolnick@vindy.com 

A proposal to reinstate the cost-of-living adjustment for retired teachers in the state pension fund has bipartisan support among state legislators who represent the Mahoning Valley.

A change to all of the state pension funds in 2012 reduced pension benefits and allowed pension boards to change the cost-of-living adjustment (COLA) without the approval of the state Legislature. The State Teachers Retirement System reduced its COLA for some retired teachers and eliminated it for others in 2013. Four years later, a 2 percent annual COLA was removed for all STRS retirees because of a bad investment.

But with the retirement fund stabilized, state Sen. Teresa Fedor, D-Toledo, introduced legislation Jan. 12 in the Senate to reinstate COLA to retirees in STRS. The bill hasn’t been assigned to a committee.

About 500,000 active and retired teachers are in the system.

The pension fund has more than $90 billion in assets as of June 30, 2021. 

The bill doesn’t specify how much of a COLA increase would be offered. 

Those in other state public retirement pension systems will receive 2.5 percent to 3 percent COLA increases this year.

State Sen. Sandra O’Brien, R-Lenox, who represents all of Trumbull and Ashtabula counties and a section of Geauga, said: “I’d more than likely be in favor of that. We’re dealing with 7 percent inflation, the highest since 1982. How do you plan for that? We need to provide a cost-of-living adjustment for retired teachers. They’ve earned that retirement, and it’s hard for them to live without it with inflation that high.” 

State Rep. Michael J. O’Brien, D-Warren, said he favors Fedor’s bill because retired teachers have lived without a COLA increase for years.

“The pensions are now healthy so they should get an increase,” he said. “There’s been lobbying from the (Ohio) Retired Teachers Association. The numbers are there. The pension is solvent. The teachers are owed their retirement.”

State Rep. Michele Lepore-Hagan, D-Youngstown, said the bill “is long overdue, and it needs to happen.”

Lepore-Hagan said she hopes the Senate will vote on it soon so it can be considered quickly by the House.

COLA increases for state retirement systems typically go into effect annually on July 1.

“We need to address this soon,” she said. “I would definitely be a yes for it as the retired teachers deserve this.”

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