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. This reinstatement addresses the suspension of COLAs enacted by P.L.2011, c.78, which halted automatic adjustments until the retirement systems achieved a target funded ratio. Eligible members must have been retired for at least ten years, and adjustments will be based on the Consumer Price Index, capped at one percent for those with annual pension benefits exceeding $76,000. The bill also specifies that no retroactive payments will be made.

In addition to reinstating COLAs, the bill amends Section 13 of P.L.1944, c.255 (C.43:16A-13) to enhance the authority of the board of trustees regarding the management of retirement benefits, allowing them to modify benefits without increasing employer contributions. It includes several deletions from current law related to the board's composition and trustee appointments, while emphasizing the board's fiduciary duty and requiring regular financial reporting. The bill also mandates the establishment of a chief investment officer position, annual investment training for board members, and a review of the retirement system's performance after six years, ensuring compliance with accepted standards and enhancing the governance and financial stability of the PFRS.

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