The bill aims to reinstate automatic cost-of-living adjustments (COLAs) for retirement benefits under the Pension Adjustment Act for members of various state retirement systems in New Jersey. This reinstatement addresses the significant erosion of purchasing power that retirees and beneficiaries have faced since the elimination of these adjustments by P.L.2011, c.78. The bill emphasizes the importance of COLAs in helping retirees manage essential living expenses and aims to enhance their financial stability, thereby reducing the potential negative impact on the state's economy as retirees may otherwise be compelled to relocate or rely more heavily on public assistance.

In addition to reinstating COLAs, the bill introduces several amendments to the governance and operational structure of the retirement systems. It clarifies the responsibilities of the board of trustees and the State House Commission, establishes a more structured audit and oversight process, and modifies the composition and responsibilities of various committees, including the Investment Committee and an Audit Committee. The bill also includes stricter regulations regarding conflicts of interest for board and committee members, reinforcing ethical standards in the management of retirement funds. Overall, the legislation seeks to improve the governance, financial security, and operational efficiency of state-administered retirement systems while ensuring that retirees receive appropriate benefits.

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