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Kansas
Coalition of Public Retirees
Position Paper
Approved October 8, 2008
The Kansas Coalition
of Public Retirees was formed in 2004 in response to the lack of a
cost-of-living adjustment (COLA) for KPERS retirees.
KPERS retirees have been without a COLA since 1998, and by 2005 the
cost-of-living had increased by nearly 20 percent (19.8) as measured by
the Consumer Price Index (CPI). Today
(2008) this key indicator (CPI) has risen to 34.41 percent.
In other words, the KPERS retiree has lost more than one-third of
his/her effective buying power since 1998.
Compelling arguments have been made that seniors are even more
severely impacted by inflation than other citizens in the economy.
The rising cost of fuel, food, and especially medical care, each
fall heavily on the senior population.
Because of these factors, the Coalition voted overwhelmingly to
pursue an immediate 3 percent annual COLA and some modified form of annual
adjustment tied to the CPI or somehow indexed to account for inflation.
While we understand and deeply respect the difficult funding issues
concerned with this request, the Coalition feels we are not in a position
to give tacit approval and ask that retirees support and accept a COLA of
less than 3 percent. Those
retired for some time are especially hard hit by the 10 year absence of
any COLA adjustment. The
Coalition remains sincerely committed to working with the Kansas
Legislature in seeking a lasting resolution to this difficult problem.
The formation of the Joint Committee on Pensions, Benefits, and
Investments, and the topic now at hand provides a unique opportunity for
the retiree and the Legislature to work towards a long term solution for,
not only the immediate COLA problem, but also to provide some form of
periodic adjustment to KPERS retirees in the face of rising inflation.
Public employees contributed a mandated share to KPERS during their
working years. Moreover, the
public employees were never offered the opportunity to reduce or lower
their share of contributions. The
public employer(s) likewise made significant contributions to the KPERS
fund. However, for whatever
reason, the now retired public employees are especially hard hit by rising
inflation and have been granted no COLA adjustment since 1998.
Many public retirees feel they received below market compensation during
their working careers with the hope or promise that they would be assured
a comfortable pension upon retirement.
Now, years later and after 10 years of no COLA adjustment, coupled
with mounting inflationary pressures, public retirees are ironically asked
to forego any cost-of-living increase in the name of fiscal
responsibility. This is the
primary reason why the retirant’s are upset and in some cases downright
angry. For these reasons, the
Coalition of Public Retirees believes we cannot change our request for an
immediate annual 3 percent COLA increase.
We sincerely wish to work with
the Legislature on a resolution to this problem.
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