The bill reinstates 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. Eligible members who have been retired for at least ten years will receive these adjustments, calculated based on a threshold of $75,000 for the first year, with future increases tied to the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, capped at three percent annually. However, members hired more than 30 days after the bill's effective date, those in deferred retirement, and those with 20 to 25 years of service will not qualify for these COLAs, and the bill does not provide for retroactive payments.

Furthermore, the bill enhances the governance structure of the PFRS by amending the authority of the board of trustees to modify benefits while ensuring that such changes do not increase employer contributions or jeopardize the fund's long-term viability. It outlines the composition, election, and appointment processes for trustees, and mandates the establishment of an Audit Committee and an Investment Committee to improve oversight. If the board fails to comply with the COLA provisions within six months of enactment, the State Treasurer will assume responsibility for implementation. The bill also requires the Legislature to appropriate necessary funds from the General Fund to cover the costs of these adjustments, ensuring local employers are fully reimbursed.

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