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. It amends Section 13 of P.L.1944, c.255 (C.43:16A-13) to clarify the responsibilities of the board of trustees overseeing the retirement system, including the authority to enhance or modify benefits as deemed appropriate, provided that such changes do not increase employer contributions or jeopardize the fund's long-term viability. The bill establishes that these COLAs will be cumulative, based on the Consumer Price Index, and capped at a three percent increase annually, specifically for members who have been retired for at least ten years. It also sets a $75,000 threshold for the first year following enactment and excludes those hired after the bill's effective date or with less than 20 years of service from eligibility.

Furthermore, the bill outlines the operational structure of the board, including the appointment of an executive director and a chief investment officer, and establishes guidelines for meetings, voting, and fund management. It emphasizes the board's fiduciary duty and mandates regular financial reporting. If the board does not comply with the COLA provisions within six months of the effective date, the State Treasurer will implement the required adjustments. The bill also requires the Legislature to appropriate necessary funds from the General Fund to cover expenses related to these adjustments, ensuring local employers are reimbursed. Overall, the bill aims to enhance financial security for retired first responders, police, and firefighters by addressing inflation's impact on their retirement benefits.

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