The bill seeks to reinstate automatic cost-of-living adjustments (COLAs) for certain members of the Police and Firemen's Retirement System (PFRS) in New Jersey, specifically targeting annual pension, ordinary disability pension, and accidental disability pension benefits. These adjustments will be cumulative and based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, with a cap of three percent annually for those with pension benefits exceeding $76,000. To qualify for these adjustments, members must have been retired for at least ten years, while new hires and those with less than 20 years of service are excluded. The bill also specifies that no retroactive payments will be granted for adjustments prior to the effective date of the act.

In addition to reinstating COLAs, the bill enhances the governance of the PFRS by amending the authority and responsibilities of the Board of Trustees. It includes provisions for the board to conduct regular reviews of the retirement system's performance and funding levels, and mandates that the chief investment officer possess specific qualifications. The bill also introduces the role of an ombudsman to assist members and requires annual investment training for board members. Furthermore, it outlines the board's discretionary authority to modify member benefits and establishes a process for the State Treasurer to assume responsibility if the board fails to implement the COLA provisions within six months. The Legislature is tasked with appropriating necessary funds from the General Fund to cover the costs of these adjustments, ensuring local employers are reimbursed for related expenses.

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