The bill seeks to reinstate automatic cost-of-living adjustments (COLAs) for retirement benefits of certain members of the Police and Firemen's Retirement System (PFRS) in New Jersey. It amends Section 13 of P.L.1944, c.255 (C.43:16A-13) to enhance the board of trustees' authority to modify benefits, allowing for the reinstatement of reduced benefits to statutory levels without requiring additional contributions from members, as long as these changes do not increase employer contributions for the current year and maintain the fund's long-term viability. The bill also includes provisions for the board to establish rules for fund administration, maintain transparency, and ensure the selection of qualified professionals for key positions, while mandating regular meetings and the establishment of a medical board to oversee disability retirement applications.

A significant aspect of the bill is the implementation of automatic COLAs for retired members who have been retired for at least ten years, with adjustments based on a percentage of the member's annual pension and calculated annually according to the Consumer Price Index, capped at a three percent increase. The bill sets a threshold of $75,000 for the first year following enactment and specifies that no retroactive payments will be granted. Additionally, if the Board of Trustees does not comply with the provisions within six months, the State Treasurer will assume responsibility for implementing the COLAs. The Legislature is required to appropriate necessary funds from the General Fund to cover expenses related to these adjustments, ensuring local employers are reimbursed, thereby prioritizing the financial well-being of retired first responders, police, and firefighters.

Statutes affected:
Introduced: 43:16A-13, 43:3B-2