The bill reinstates 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 include various funds such as the Teachers Pension and Annuity Fund and the Police and Firemen's Retirement System. This reinstatement addresses the previous elimination of COLAs by P.L.2011, c.78, which had negatively impacted retirees' purchasing power due to inflation. The bill emphasizes the importance of these adjustments in helping retirees manage essential living expenses and aims to prevent potential economic consequences for the state, such as increased reliance on public assistance programs.

In addition to reinstating COLAs, the bill amends the governance structure of the retirement system by establishing a board of trustees and two committees responsible for overseeing operations and making modifications to member contributions and benefits once a target funded ratio is achieved. It includes provisions for the selection of auditors through competitive bidding, the establishment of an Audit Committee, and the appointment of an executive director and chief investment officer with specific qualifications. The bill also outlines ethical standards for board members and ensures transparency in financial reporting, ultimately aiming to enhance the governance and financial stability of the retirement systems while safeguarding the interests of retirees.

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