The bill reinstates automatic Cost of Living Adjustments (COLAs) for retirement benefits under the Pension Adjustment Act for members of various state retirement systems in New Jersey, including the Teachers Pension and Annuity Fund and the Public Employees Retirement System. This reinstatement addresses the significant erosion of purchasing power that retirees have faced since the elimination of these adjustments in 2011. The legislation emphasizes the importance of COLAs in maintaining financial stability for retirees, allowing them to manage essential living expenses and reducing the risk of increased reliance on public assistance programs.

In addition to reinstating COLAs, the bill introduces several amendments to enhance the governance and operational efficiency of the retirement systems. It establishes a structured audit and oversight process, including the creation of an Audit Committee, and modifies the composition and responsibilities of the Investment Committee to ensure members possess relevant qualifications. The bill also enforces stricter regulations regarding conflicts of interest for board and committee members, reinforcing ethical standards in the management of retirement funds. Overall, the legislation aims to improve the financial security of state-administered retirement systems while addressing the critical need for inflation protection for retirees.

Statutes affected:
Introduced: 43:6A-29, 43:15A-17, 43:16A-13, 53:5A-30, 43:3B-2