February 2, 2025 - 19:28
In Alabama, education retirees are left wondering why they have not received a cost-of-living adjustment (COLA) increase, despite lawmakers approving one-time bonuses for them. The state government has shown hesitation in providing a permanent COLA, primarily due to concerns over potential increases in unfunded liabilities within the pension system.
This reluctance stems from a broader fear that granting regular COLA increases could exacerbate financial challenges for the state, potentially leading to long-term fiscal instability. As inflation rises and the cost of living continues to climb, many retirees are feeling the pressure of stagnant benefits, which do not keep pace with economic changes.
While the one-time bonuses offer some immediate relief, they do not address the underlying issue of maintaining a sustainable income for retirees in the long run. Advocacy groups are urging lawmakers to reconsider their stance and prioritize the financial well-being of Alabama's education retirees, who have dedicated their careers to serving the state's youth.
