In statehouses across the country, public workers and retiree associations are pushing legislation to address the effects of rising inflation on retirement benefits, and Harrisburg is no exception. According to state law, only the Pennsylvania General Assembly can grant a cost-of-living adjustment. Lawmakers are currently weighing three proposals that sponsors claim would provide retirees with the inflation protection they are demanding. Unfortunately, the ad hoc and arbitrary nature of the retirement benefit enhancements being considered fundamentally conflicts with the best practices in cost-of-living adjustment design and Pennsylvania’s ongoing pursuit of long-term public pension solvency.
As proposed, the measures effectively offer bonus