For the past 30 years, governors and legislators have given pensioners very little increases to help with inflation. The creators of the pension system intended that lawmakers give state retirees these small increases to help defer the cost of living and rising inflation rate.
In his first term in office, Gov. John Carney gave all state employees a 2% salary increase for four years. The inflation rate at the time was 2.4%. That means that those increases nearly matched the inflation rate, and that, over four years, they received an 8% increase. Good for them, and, in many cases, well deserved. However, in that four-year period, pensioners received no permanent increase at all. Instead, that year we got a one-time increase of $425.
Finally, last year, after several interactions with the Joint Finance Committee, the legislature voted a 1%, 2% or 3% increase in pension checks to state retirees based on their year of retirement. This year, retirees are getting a 2% or 3% increase. However, the inflation rate is now around 8%, so many retirees are realizing no relief and are losing 20% to 40% of their purchasing power. Many are approaching the poverty line. It is almost too little too late.
There are over 20,000 state retirees in Delaware, 810 of which are super seniors over the age of 90. Many of us continue to volunteer our services to our communities. We are still contributing to benefit the state of Delaware. And we vote.
The current Democratic administration has not recognized retirees’ needs and seems to have lost empathy and respect for this large group of Delaware citizens. I feel the state does have the funds to give retirees a more equitable relief should they choose to. And retirees can choose, through our votes, whom we want to manage our pension system.
Ted George
Retired teacher
Dover
