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. The legislation establishes that members hired after the bill's effective date will not be eligible for these adjustments, while those receiving ordinary or accidental disability retirement benefits will qualify without a minimum service requirement. The COLAs will be calculated based on a member's annual pension benefit, with an initial cap of $75,000, and subsequent adjustments will be linked to the Consumer Price Index (CPI), with a maximum increase of one percent for benefits exceeding that threshold.

Furthermore, the bill empowers the Board of Trustees of the SPRS to implement these automatic COLAs and outlines the calculation and application framework for these adjustments. It also includes provisions that if the Board does not comply within six months of enactment, the State Treasurer will assume responsibility for implementing the COLAs. The Legislature is mandated to appropriate necessary funds from the General Fund to support these adjustments, ensuring that this funding takes precedence over other budgetary allocations. Overall, the bill aims to enhance the financial security of retired members of the SPRS by ensuring their benefits keep pace with inflation while addressing pension funding issues within the state-administered retirement systems.

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