Gov. Brian Kemp has used his veto power to pull $100 million out of the fiscal year 2027 budget that lawmakers had earmarked to bolster future cost-of-living raises for state retirees. The Employees’ Retirement System has already signed off on a 2.25% cost-of-living adjustment set to hit July payments, but retiree advocates warn that the modest boost is not likely to keep up with inflation.
Retirees say small raise won't stretch far
According to The Atlanta Journal-Constitution, Kemp’s line-item veto wiped out $100 million that legislators wanted to use to help guarantee larger, ongoing cost-of-living increases for roughly 56,000 retired state employees. "And then the door just got slammed shut in our faces," said Chuck Freedman, legislative liaison for the Georgia State Retirees Association. The outlet reports that the 2.25% increase works out to about $49 a month for the typical retiree.
How much and who qualifies
The Employees’ Retirement System of Georgia says its boards approved the 2.25% monthly cost-of-living adjustment at an April 16 meeting, and the bump will show up in the July benefit payment that is payable at the end of that month. ERS details eligibility rules, including that the increase applies to benefits that do not exceed the Social Security wage base and to retirees whose retirement effective dates are on or before July 1, 2025. Certain newer GSEPS members and SGLI annuities are excluded from the increase under the system’s guidelines.
Why the cuts landed on retirees
Kemp framed the vetoes as part of a broader effort to offset the impact of newly approved income tax cuts, which his office said created nearly a $1 billion reduction in projected revenue. To keep the budget in balance, the governor directed state agencies to hold back more than $300 million in proposed new spending. The Office of Gov. Brian P. Kemp emphasized that the withheld money is aimed at new projects rather than existing programs.
What officials and advocates say
Retiree leaders acknowledge that the state has recently pumped substantial cash into the retirement system, but they argue that the latest veto sharply limits the potential for larger, ongoing raises in the years ahead. The system has received two separate $500 million payments in recent years and a $100 million contribution in the amended 2026 fiscal year budget that helped make this year’s 2.25% adjustment possible, according to The Atlanta Journal-Constitution. ERS executive director Jim Potvin told the outlet he is "heartened" by the support and goes "into the next session with a sense of optimism" about future funding.
Lawmakers will get another crack at their priorities during Georgia’s amended budget process and the next legislative session, giving retirees and their allies a window to push for restoring the money or finding new ways to shore up retiree benefits. For now, eligible retirees are set to receive the 2.25% increase in their July payments while the bigger question of how to secure larger, long-term cost-of-living raises remains unresolved.
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