This bill reinstates the automatic Cost of Living Adjustments (COLAs) for retirement benefits under the Pension Adjustment Act for members of New Jersey's state-administered retirement systems, which had been eliminated by previous legislation. The reinstatement aims to protect retirees from the erosion of their purchasing power due to inflation, ensuring they can manage essential living expenses. The bill also includes significant amendments to the governance structure of the retirement systems, clarifying the roles and responsibilities of the board of trustees and establishing committees to oversee investment policies and member contributions.

In addition to reinstating COLAs, the bill introduces various administrative changes, such as the establishment of an executive director and a chief investment officer, and emphasizes ethical guidelines for board members. It deletes previous provisions that restricted adjustments to retirement allowances, allowing for greater flexibility in managing benefits based on the financial health of the retirement systems. The bill mandates regular audits and requires the board to maintain transparency and accountability in fund management, ultimately aiming to enhance the operational efficiency and governance of the retirement systems while safeguarding the financial well-being of retirees.

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