Bill
Bill > S2023
NJ S2023
NJ S2023Requires cost of living increase to be granted in each of two calendar years for certain retired members and beneficiaries of PFRS; makes appropriation.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill would provide for cost of living increases for certain retired members, surviving spouses, children, or beneficiaries who are receiving monthly payments from the Police and Firemen's Retirement System. The increases would be provided on January 1 of the calendar year following enactment of this bill and on January 1 of the next following calendar year. The increase would be provided only when the amount of a retirement allowance, pension, or benefit originally granted was at or below 450 percent of the federal poverty level for a household of one. The federal poverty level for 2022 for a household of one is an annual amount of $13,590, and 450 percent of the federal poverty level for a household of one is an annual amount of $61,155. In addition, the adjustment would be provided to retired members who are receiving a retirement allowance or pension, other than for accidental or ordinary disability, only if the retired member has attained the age of 62 years as of January 1 of the calendar year following the enactment of this bill. The adjustment would be provided to all other retired members, surviving spouses, children, or beneficiaries regardless of their age. For the purposes of calculating an adjustment, the maximum consumer price index used would be three percent and the minimum would be one percent. The bill defines the consumer price index as the annual average over a 12-month period beginning September 1 and ending August 31 of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), All Items Series A, of the United States Department of Labor, for the NY-Northeastern New Jersey region. The bill requires the State to fund the cost of these increases and makes an appropriation for that purpose. The adjustment would be calculated using the chart as follows:Annual retirement allowance, pension, or survivorship benefit as a percentage of federal poverty level for household of one.Percentage of CPI-W to calculate adjustment. 0.000%150.000%150.0% of CPI-W150.001%175.000% 120.0% of CPI-W175.001%200.000%100.0% of CPI-W200.001%225.000% 85.0% of CPI-W225.001%250.000% 75.0% of CPI-W250.001%275.000% 67.5% of CPI-W275.001%300.000% 60.0% of CPI-W300.001%325.000% 50.0% of CPI-W325.001%350.000% 40.0% of CPI-W350.001%375.000% 30.0% of CPI-W375.001%400.000% 27.5% of CPI-W400.001%425.000% 23.0% of CPI-W425.001%450.000% 20.0% of CPI-W
AI Summary
This bill mandates cost-of-living adjustments for certain retired members and beneficiaries of the Police and Firemen's Retirement System (PFRS), which is a pension system for police officers and firefighters. These increases will be applied on January 1 of the year following the bill's enactment and again on January 1 of the subsequent year, with the second increase becoming permanent. Eligibility for these adjustments is contingent on the original retirement allowance, pension, or benefit not exceeding 450% of the federal poverty level for a single person, which for 2022 was $61,155 annually. Additionally, retired members receiving benefits for reasons other than accidental or ordinary disability must be at least 62 years old to qualify, while all other eligible individuals, including surviving spouses and children, will receive the adjustment regardless of age. The size of the adjustment is determined by a tiered system that links the retiree's benefit amount, as a percentage of the federal poverty level, to a specific percentage of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the New York-Northeastern New Jersey region, with a cap of 3% and a floor of 1% for the CPI-W calculation. The State will fund these increases through an appropriation from the General Fund, and retirees can choose to waive these adjustments.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S2023 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2023_I1.HTM |
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