The bill reinstates automatic Cost of Living Adjustments (COLAs) for retirement benefits under the Pension Adjustment Act for members of various state retirement systems in New Jersey, including the Teachers Pension and Annuity Fund and the Police and Firemen's Retirement System. This reinstatement addresses the financial strain retirees have faced due to the elimination of these adjustments, which has eroded their purchasing power and made it challenging to cover essential living expenses. The bill emphasizes the importance of COLAs in maintaining retirees' financial stability and aims to prevent potential increases in public assistance demands that could arise from inadequate support for retirees.

In addition to reinstating COLAs, the bill introduces significant changes to the governance structure of the retirement system. It establishes a board of trustees and two committees responsible for overseeing the system's operations, with provisions for transparency, accountability, and ethical standards among members. The board will consist of 12 trustees from various sectors, and the committees will have the authority to modify member contributions and benefits once the system reaches a target funded ratio. The bill also outlines the selection process for auditors and the establishment of an Audit Committee to ensure financial integrity, while emphasizing the need for public bidding in auditor selection at least every five years. Overall, the legislation aims to enhance the governance and financial health of the retirement systems while ensuring that retirees receive necessary adjustments to their benefits.

Statutes affected:
Introduced: 43:6A-29, 43:15A-17, 43:16A-13, 53:5A-30, 43:3B-2