The bill reinstates the automatic Cost of Living Adjustment (COLA) for retirement benefits under the Pension Adjustment Act for members of New Jersey's state-administered retirement systems, addressing the previous elimination of these adjustments that risked retirees' purchasing power due to inflation. It establishes a committee with the authority to modify member contribution rates and benefits once the retirement system reaches a target funded ratio, while removing provisions that allowed for activating the Pension Adjustment Act for retirees. The bill emphasizes the importance of COLAs in maintaining financial stability for retirees, enabling them to manage essential living expenses.

Additionally, the bill outlines the governance structure of the retirement system, detailing the composition and election process for a 12-member board of trustees, which includes representatives from various sectors. It mandates ethical conduct among board and committee members, prohibits the acceptance of gifts that could influence their duties, and establishes an Audit Committee to oversee financial reporting. The bill also includes provisions for the selection of auditors through competitive bidding and the formation of an Investment Committee to assist in managing investment policies. Overall, the legislation aims to enhance governance, operational efficiency, and financial oversight of the retirement systems while ensuring that retirees receive necessary adjustments to their benefits.

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