This bill mandates a cost of living increase for retirees and beneficiaries of specific public retirement systems in New Jersey, including the Teachers' Pension and Annuity Fund, Judicial Retirement System, Public Employees' Retirement System, Police and Firemen's Retirement System, and State Police Retirement System. The increase is applicable only to those whose monthly retirement allowance or benefit is at or below 150 percent of the federal poverty level as of January 1, 2023, and January 1, 2024. The adjustment will be calculated at 100 percent of the change in the Consumer Price Index, a significant increase from the previous 60 percent provided under the pension adjustment law, which was discontinued in 2011.

The bill also includes provisions for the State to cover the costs associated with these adjustments, requiring appropriations from the State General Fund for State Fiscal Years 2023 and 2024, as well as subsequent years. The Director of the Division of Pensions and Benefits is tasked with certifying the necessary amounts for these adjustments and administrative costs. Additionally, eligible individuals may waive their right to the increase by submitting a written notice, with the option to withdraw the waiver at any time. The act is set to take effect immediately upon passage.