This bill reinstates automatic cost-of-living adjustments (COLAs) for retirement benefits for members of the State Police Retirement System (SPRS) who have been retired for at least ten years. It specifically addresses the suspension of these adjustments that occurred under P.L.2011, c.78, which halted COLAs for current and future retirees until the retirement systems achieved a target funded ratio. The bill establishes a $75,000 threshold for pension benefits, with adjustments based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers. Members receiving up to $75,000 will receive a COLA tied to the CPI, while those exceeding this amount will have their adjustment capped at one percent for the first year. Future adjustments to the $75,000 threshold will be made annually, with a maximum increase of three percent.

Additionally, the bill allows the Board of Trustees of the SPRS to modify certain aspects of the retirement system, such as member contribution rates and retirement benefits, once the system reaches a target funded ratio. It emphasizes that any modifications must not result in the funded ratio falling below the target in the following 30 years. The bill also outlines the responsibilities and voting procedures for the committee and board members to ensure transparency and accountability in managing the retirement system. If the Board of Trustees fails to comply with the provisions within six months, the State Treasurer is mandated to implement the necessary adjustments, and the Legislature is required to appropriate funds from the General Fund to support these COLAs, prioritizing this funding over other budgetary allocations.

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