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 face due to the absence of COLAs, which has eroded their purchasing power and made it challenging to cover essential living expenses. The bill aims to enhance the financial stability of retirees and mitigate potential negative impacts on the state's economy, as retirees may otherwise relocate to states with lower living costs, resulting in a loss of economic activity and tax revenue for New Jersey.

In addition to reinstating COLAs, the bill amends the governance structure of the retirement systems by establishing a board of trustees and two committees with defined roles and responsibilities. It clarifies the board's authority to manage the retirement system, including the ability to modify member benefits and contribution rates while ensuring the system's financial health. The bill also emphasizes transparency and accountability through provisions for public access to records, regular audits, and ethical standards for board members, including a prohibition against accepting gifts that could influence their duties. Overall, the bill seeks to improve the operational efficiency and integrity of the retirement systems while safeguarding the financial well-being of retirees.

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