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, which had been eliminated by previous legislation. This 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 emphasizes the importance of COLAs in maintaining the financial stability of retirees, thereby preventing potential relocations to states with lower living costs, which could negatively impact New Jersey's economy and tax revenue.

In addition to reinstating COLAs, the bill introduces significant amendments to the governance and oversight of the retirement systems. It clarifies the roles and responsibilities of the board of trustees and establishes new committees to enhance operational efficiency and accountability. Notably, 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 also includes measures to prevent conflicts of interest, mandates ethics training for board members, and requires regular audits to ensure transparency in the management of retirement funds.

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