This bill aims to reinstate automatic cost-of-living adjustments (COLAs) for retirement benefits for members of the State Police Retirement System (SPRS). It introduces provisions for annual adjustments to pension, ordinary disability pension, and accidental disability pension benefits for members who have been retired for at least ten years. Importantly, members hired more than 30 days after the bill's effective date will not be eligible for these adjustments. The adjustments will be calculated based on a maximum of $75,000 of a retiree's annual pension benefit for the first year, with subsequent adjustments linked to the Consumer Price Index (CPI), capped at a one percent increase for those exceeding the $75,000 threshold.

Additionally, the bill modifies the authority of the Board of Trustees of the SPRS, allowing them to implement these automatic COLAs and outlining the conditions for adjustments, including their cumulative nature. The $75,000 threshold for adjustments will be adjusted annually based on the CPI, with a maximum increase of three percent. If the Board of Trustees fails to comply with the provisions within six months, the State Treasurer will be responsible for implementing the adjustments. The bill also requires the Legislature to appropriate necessary funds from the General Fund to support these adjustments, ensuring that they are prioritized over other budgetary allocations.

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