Bill > S1491

Introduced Session

This bill reinstates automatic cost-of-living adjustments (COLAs) for retirement benefits under the "Pension Adjustment Act," P.L.1958, c.143 (C.43:3B-1 et seq.), for members of the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Public Employees' Retirement System, the Police and Firemen's Retirement System, and the State Police Retirement System. Provisions contained in P.L.2011, c.78 (C.43:3C-16 et al), signed into law on June 28, 2011, cancelled the automatic, annual adjustment for current and future retirees and beneficiaries of these State-administered retirement systems. COLAs protect retirement benefits against erosion by inflation, the ills of which were addressed by the Legislature, both for the individual and the State, with the enactment of the "Pension Adjustment Act" in 1958. Without the annual adjustment, retirees and beneficiaries will gradually see significant reductions in their purchasing power. The loss of COLAs will impact their everyday lives, and, over time, make it harder to afford more necessary elements of living, such as out-of-pocket medical costs, groceries, and utility bills. Retirees and beneficiaries will find it more prudent, or perhaps necessary, to leave this State for other states with a comparably lower cost of living. For the State, such outbound migration will result in the loss of the economic activity of those retirees and beneficiaries, and any tax revenues concomitant with such activity. In addition, New Jersey's fiscal outlook may be further strained by the retirees and beneficiaries who remain. These persons will continue to slip further downward on the socioeconomic scale. In some cases, they will require, or at the least become eligible and utilize, greater levels of public assistance under the many taxpayer funded social programs administered by the State, counties, and municipalities, requiring more revenues to meet this increased demand. In the interests of the retirees and beneficiaries of the State-administered retirement systems, and the State, this bill reinstates the automatic COLAs for retirement benefits under the "Pension Adjustment Act."

AI Summary

Committee Categories

Brian Stack (D)*,  Shirley Turner (D)*,  Carmen Amato (R),  Jon Bramnick (R),  Tony Bucco (R),  Kristin Corrado (R),  Nilsa Cruz-Perez (D),  Joe Cryan (D),  Patrick Diegnan (D),  Vin Gopal (D),  Linda Greenstein (D),  Jim Holzapfel (R),  Joe Lagana (D),  Vince Polistina (R),  Bob Singer (R),  Troy Singleton (D),  Latham Tiver (R),  Andrew Zwicker (D), 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/09/2024)

Official Document