The bill reinstates the automatic Cost of Living Adjustment (COLA) 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. 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 specific language regarding the activation of the Pension Adjustment Act has been deleted.

Moreover, the bill amends the governance structure of the retirement system by detailing the composition and responsibilities of the board of trustees and various committees, including an Audit Committee and an Investment Committee. It mandates a transparent selection process for auditors based on public bidding principles and outlines ethical guidelines to prevent conflicts of interest among board and committee members. 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, ultimately supporting their financial well-being and mitigating potential negative impacts on the state's economy.

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