Requires cost of living increase to be granted in each of two State fiscal years when retirement allowance or benefit is below certain amount for retiree or beneficiary in PERS, TPAF, PFRS, SPRS, and JRS; makes appropriation.

A2449

ASSEMBLY, No. 2449

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman TENNILLE R. MCCOY

District 14 (Mercer and Middlesex)

Assemblywoman CARMEN THERESA MORALES

District 34 (Essex)

SYNOPSIS

���� Requires cost of living increase to be granted in
each of two State fiscal years when retirement allowance or benefit is below
certain amount for retiree or beneficiary in PERS, TPAF, PFRS, SPRS, and JRS;
makes appropriation.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning cost of living increase for certain
retired public employees and beneficiaries and supplementing P.L.1958, c.143
(C.43:3B-1 et seq.) and making an appropriation.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� An adjustment shall
be provided in accordance with the �Pension Adjustment Act�, P.L.1958, c.143
(C.43:3B-1 et seq.), to the monthly retirement allowance or pension of a
retirant and the monthly pension or survivorship benefit of any beneficiary of
the Teachers' Pension and Annuity Fund, Judicial Retirement System, Public
Employees' Retirement System, Police and Firemen's Retirement System, and�
State Police Retirement System when the allowance, pension, or benefit on
January 1, 2023 and January 1, 2024, as appropriate, is at or below 150 percent
of the federal poverty level as set for a household of one.

���� b.� Notwithstanding subsection
a. of section 6 of P.L.1969, c.169 (C.43:3B-7), the percent of adjustment shall
be 100 percent of the percent of change in the Consumer Price Index as
calculated in accordance with the �Pension Adjustment Act�.�

���� c.� An adjustment shall be
made only on January 1, 2023 and on January 1, 2024.�

���� d.� (1) The cost of the
adjustments required by this section shall be paid by the State and shall be
appropriated for State Fiscal Year 2023 and State Fiscal Year 2024, and for
each fiscal year thereafter, from the State General Fund to the various retirement
systems and funds specified in subsection a. of this section.��

���� (2) The Director of the
Division of Pensions and Benefits, or the board of trustees of the Police and
Firemen�s Retirement System, as appropriate, shall certify in calendar year
2022 and 2023, and in each year thereafter, to the Director of the Division of
Budget and Accounting in the Department of the Treasury the amount necessary to
pay for the cost of the adjustments in retirement allowances, pensions, and
survivorship benefits made pursuant to this section and necessary
administrative costs.

���� e.� Any person who is eligible
to receive the increased retirement allowance, survivorship benefit, or pension
under the provisions of this section may waive, at any time, the right thereto
by filing a written notice of waiver with the Division of Pensions and Benefits
or the board of trustees of the Police and Firemen�s Retirement System, as
appropriate.� The application for the waiver of all or part of the increase
shall be made by the retirant or beneficiary at least 30 days prior to� the
desired effective date on a form satisfactory to the Division of Pensions and
Benefits or the board of trustees, as appropriate, and shall be effective on
the first day of the following month. �The waiver may be withdrawn at any time
and upon the withdrawal the increase in the retirement allowance, survivorship
benefit, or pension shall commence with the payment for the next following
month.

���� 2.��� There is hereby
appropriated from the State General Fund to the Teachers' Pension and Annuity
Fund, Judicial Retirement System, Public Employees' Retirement System, Police
and Firemen's Retirement System, and State Police Retirement System such amount
as shall be certified in accordance with paragraph (2) of subsection d. of
section 1 of this act, P.L.��� , c.��� (C.���� )(pending before the Legislature
as this bill), by the Division of Pensions and Benefits and the board of
trustees of the Police and Firemen�s retirement System to the Director of the
Division of Budget and Accounting in the Department of the Treasury as necessary
to provide for the cost of the adjustment in retirement allowances, pensions,
and survivorship benefits and necessary administrative costs under section 1 of
this act.

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill would provide for a
cost of living increase for certain retired public employees and their
beneficiaries who are receiving monthly payments from the Teachers' Pension and
Annuity Fund, Judicial Retirement System, Public Employees' Retirement System, Police
and Firemen's Retirement System, and State Police Retirement System.�

���� The increase would be provided
only to those retirees and beneficiaries who are currently receiving an amount
that is at or below 150 percent of the federal poverty level as set for a
household of one.

���� The increase would be provided
only on January 1, 2023 and January 1, 2024.�

���� The increase would be
calculated in the same way that such increases were calculated when such
increases were provided annually under the pension adjustment law,
N.J.S.A.43:3B-1 et seq.; these annual increases were ended by law in 2011.�

���� However, the increase under
this bill will be 100 percent of the change in the Consumer Price Index,
instead of the 60 percent provided by the pension adjustment law.

���� The bill requires the State to
fund the cost of these increases and makes an appropriation for that purpose.