This bill mandates a cost of living increase for certain retirees and beneficiaries receiving pensions from 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 departure from the previous 60 percent calculation under the Pension Adjustment Act, which was discontinued in 2011.

The bill also stipulates that the State will bear the cost of these adjustments, with appropriations made from the State General Fund for State Fiscal Years 2023 and 2024, and for subsequent years as necessary. The Director of the Division of Pensions and Benefits is tasked with certifying the required amounts for these adjustments to the Director of the Division of Budget and Accounting. Additionally, retirees and beneficiaries have the option to waive their right to the increase by submitting a written notice, which can be withdrawn at any time, allowing for flexibility in managing their benefits.