The bill reinstates 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 clarify the responsibilities of the board of trustees overseeing the retirement system, including their authority to enhance or modify benefits without increasing employer contributions or jeopardizing the fund's long-term viability. The bill also includes several deletions from current law regarding the composition and election of the board of trustees, emphasizing their fiduciary duty to manage the retirement system effectively. It establishes guidelines for appointing an executive director and chief investment officer, mandates transparency through public records, and requires annual investment training for board members.

Furthermore, the bill introduces provisions for automatic COLAs for eligible members' pensions, specifically for those retired for at least ten years, while excluding new hires or those with less than 20 years of service. The adjustments will be based on a specified amount for the first year and subsequently tied to the Consumer Price Index, with a cap of one percent for members earning over $75,000. If the Board of Trustees does not comply with these provisions within six months of enactment, the State Treasurer will implement the required COLAs. The bill also mandates the Legislature to appropriate necessary funds from the General Fund to cover related expenses, ensuring local employers are reimbursed, thereby enhancing financial security for retired first responders, police, and firefighters.

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