The bill reinstates automatic cost-of-living adjustments (COLAs) for retirement benefits of 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. It establishes eligibility criteria for these adjustments, requiring members to have been retired for at least ten years, with a $75,000 threshold for the first year and subsequent adjustments linked to the Consumer Price Index (CPI), capped at a three percent increase annually. The bill also mandates that if the Board of Trustees does not comply with these provisions within six months of enactment, the State Treasurer will implement the required COLAs, ensuring that local employers are reimbursed for related expenses.

In addition to reinstating COLAs, the bill amends the governance structure of the PFRS Board of Trustees, clarifying their responsibilities and fiduciary duties while removing certain provisions related to board composition and election processes. It establishes guidelines for appointing a chief investment officer and an ombudsman, as well as requiring annual investment training for board members. The bill emphasizes the board's authority to modify member benefits and contribution rates, with strict voting requirements for any changes, ultimately aiming to enhance the management and financial stability of the retirement system while ensuring that retired first responders receive appropriate benefits.

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