This bill reinstates automatic cost-of-living adjustments (COLAs) for retirement benefits for certain retired members of the Teachers Pension and Annuity Fund (TPAF) who accepted early retirement incentives prior to January 1, 2011. The legislation amends existing law to allow the Board of Trustees of the TPAF, in consultation with the actuary of the fund and the State Treasurer, to implement these automatic adjustments. The COLAs will apply only to future pension benefit payments and will not be retroactive, meaning no member will receive a payment based on the difference between what they would have received had the adjustment been in effect at the time of entitlement and what they have actually received.

The bill also includes specific legal language changes, such as the deletion of provisions that previously restricted adjustments to retirement allowances and pensions, and the insertion of new language that allows for the reactivation of adjustments under certain conditions. This reinstatement of COLAs aims to provide financial relief to eligible retirees who have been affected by the cancellation of automatic adjustments under previous legislation. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 43:3B-2