The bill seeks to reinstate 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 enhance the board of trustees' authority to modify benefits, allowing for the reinstatement of reduced benefits to statutory levels without requiring additional contributions from members, as long as these changes do not increase employer contributions for the current year and maintain the fund's long-term viability. The bill also introduces specific eligibility criteria for COLAs, including a threshold of $75,000 for annual pension benefits, and establishes that adjustments will be based on the Consumer Price Index, capped at a maximum increase of three percent annually. Importantly, it specifies that no retroactive payments will be granted and that only members retired for at least ten years will be eligible for these adjustments.

In addition to reinstating COLAs, the bill includes several deletions from current law regarding the composition and appointment process of the board of trustees. It emphasizes the board's responsibility for fund administration, transparency, and the selection of qualified professionals for key positions. The bill mandates regular meetings and the establishment of a medical board to oversee disability retirement applications, enhancing governance and operational efficiency. Furthermore, it outlines the qualifications and restrictions for the chief investment officer, establishes an ombudsman position for assisting members with benefits, and requires annual investment training for board members. If the board fails to comply with the provisions within six months, the State Treasurer will assume responsibility for implementing the COLAs, with the Legislature required to appropriate necessary funds from the General Fund to cover related expenses.

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