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, addressing the previous elimination of these adjustments which had negatively impacted retirees' purchasing power. The legislation emphasizes the importance of COLAs in helping retirees manage essential living expenses and aims to prevent the erosion of their financial stability due to inflation. Additionally, the bill establishes a committee with the authority to modify member contribution rates and benefits once the retirement system reaches a target funded ratio, although the specific authority to activate the Pension Adjustment Act for retirees has been removed from the text.

Moreover, the bill outlines a comprehensive governance structure for the retirement system, including the formation of a board of trustees and two committees to oversee operations and ensure accountability. It mandates a transparent selection process for auditors, requires annual fiscal reporting, and establishes an ethics policy for board members. The board will consist of 12 trustees representing various sectors, and the bill includes provisions to prevent conflicts of interest among members. Overall, the legislation aims to enhance the 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