Bill Text: NJ S2475 | 2024-2025 | Regular Session | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-05 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S2475 Detail]
Download: New_Jersey-2024-S2475-Introduced.html
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
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
As introduced.
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.
