This bill reinstates automatic cost-of-living adjustments (COLAs) for retirement benefits for members of the State Police Retirement System (SPRS), specifically targeting those who have been retired and receiving benefits for at least ten years. Members hired after the bill's effective date will not be eligible for these adjustments. The COLAs will be calculated based on the member's annual pension benefit, with a maximum adjustment of one percent for those earning over $75,000 in the first year following the bill's enactment. Future adjustments will be linked to the Consumer Price Index (CPI), ensuring that benefits keep pace with inflation. The bill also clarifies the authority of the Board of Trustees of the SPRS regarding the implementation of these COLAs, specifying that adjustments will be cumulative and will apply to the previous year's benefit amount.

Additionally, the bill establishes a $75,000 threshold for pension benefits, with adjustments for those earning up to this amount tied to the CPI. For members exceeding the threshold, the adjustment is capped at one percent for the first year. The bill includes provisions for annual adjustments to the $75,000 threshold, with a maximum increase of three percent. If the Board of Trustees fails to comply with the provisions within six months, the State Treasurer is mandated to implement the adjustments. Furthermore, the Legislature is required to appropriate necessary funds from the General Fund to support these adjustments, prioritizing them over other budgetary allocations.

Statutes affected:
Introduced: 53:5A-30, 43:3B-2