Schuylkill Co. retirees request COLA increase
In October, Schuylkill County’s retirees asked for a cost-of-living increase. The last one was in 2017.
On Wednesday, the county Retirement Board voted unanimously to review the request. A review is required by law every three years. But from some officials’ comments, they appeared to be wary of granting the increase, citing the approximate $4 million impact on the county budget.
The hesitancy stems from a 2015 change in state law, which changed how counties could determine any increases.
Among the changes was that counties are required to base an increase only on the Consumer Price Index for Pennsylvania, New Jersey, Maryland and Delaware, which currently is at 4.2%.
“The cost of living increase, if approved by the retirement board, will increase each eligible retirees monthly pension by 4.2% effective January 2027. The amount required to fund the increase payable to those members who retired in 2025 and prior years is $3,818,666,” said Controller Sharyn M. Yackenchick.
County Finance Director Glenn A. Geissinger said the county currently contributes $2.4 million a year to the retirees’ benefit plans. The mandated 4.2% increase would add the approximate $4 million to that figure.
The money is drawn from the county’s general fund, he said.
The request comes as the county is crafting its 2027 spending plan, aiming for no tax increase.
A $4 million additional expense likely could not be absorbed without increasing taxes, Geissinger said.
“You either do $4 million or you do nothing,” he said. “That’s the problem.”
“Again, it’s Harrisburg not giving the counties the flexibility they need,” Yackenchick said.
She said she and other county controllers plan to visit Harrisburg in the spring to urge lawmakers to nudge forward a 2025 bill, currently stalled in committee, that would again allow counties to grant smaller cost-of-living increases.
“Hopefully, they can put that back in,” said Commissioner Gary J. Hess.
Commissioners Chairman Larry J. Padora Jr. said the county already pays for retirees’ health insurance and prescriptions, both of which increased by about 6% this year, the cost of which is not passed on to the retirees.
“I believe it’s more important to give them affordable health care,” he said.
The Retirement Board consists of county commissioners Padora, Hess and Barron L. Hetherington; Yachenchick; and First Deputy Treasurer Nea M. Griffin.