HUNTSVILLE, Ala. (WAFF) -The last time any Alabama state retiree received a cost of living increase was over 10 years ago.
“They recognized it for all the groups,” Alabama State Retiree Association President Norris Green said. “Retirees are the only group that they’re not working anymore so they can’t go out and find a new job. The amount that you gave them when they retired is stagnant and it doesn’t keep up with inflation.”
Green sees the problem with the way cost of living adjustments or COLAs are passed by lawmakers. Each year, lawmakers have to vote on a COLA and set the amount it would cost over a participant’s lifetime.
For example: In 2007, the last increase was estimated to cost $1.4 billion. That’s money the state does not have but is forced to fund year by year hence the reason why lawmakers can’t agree to pass a new increase.
A new bill would change the process.
“This bill didn’t cost a penny,” Green said. “This was just changing the retirement system law to say this is how we’re going to do it if we ever do one.”
Green drafted the bill himself that would allow lawmakers wiggle room to make adjustments year by year. It passed unanimously in the state house but Green said it was held up by State Senator Arthur Orr.
Orr told WAFF:
“I’m committed to funding a retiree COLA, but we have to be careful in what we pass,” Orr said. “There’s never been a bill like this ever used before in the country. There were real concerns from people in the retirement world about it.”
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