Bill Text: NJ A3934 | 2022-2023 | Regular Session | Introduced
Bill Title: Provides one-time payment of $300 to retirees and beneficiaries in PERS, TPAF, PFRS, SPRS, and JRS; makes appropriation.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2022-05-12 - Introduced, Referred to Assembly State and Local Government Committee [A3934 Detail]
Download: New_Jersey-2022-A3934-Introduced.html
Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
SYNOPSIS
Provides one-time payment of $300 to retirees and beneficiaries in PERS, TPAF, PFRS, SPRS, and JRS; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning a payment to retired public employees and beneficiaries and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The State Treasurer shall make a payment of $300 to each retiree receiving a monthly retirement allowance or pension, and each beneficiary receiving a monthly pension or survivorship benefit, as of the effective date of P.L. , c. (pending before the Legislature as this bill) 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 Director of the Division of Pensions and Benefits and the board of trustees of the Police and Firemen's Retirement System shall certify to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to provide for the payment.
Each State-administered retirement system and fund shall provide to the State Treasurer all information necessary to make the payment to each retiree and beneficiary.
2. There is hereby appropriated from the State General Fund to the Department of the Treasury such an amount as shall be certified 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 payment required by section 1 of this act, P.L. , c. (pending before the Legislature as this bill).
3. This act shall take effect immediately.
STATEMENT
This bill would provide a one-time payment of $300 by the State to retired public employees and their beneficiaries who are receiving monthly pensions and benefits 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 annual cost-of-living increase given to retired public employees and their beneficiaries was ended by law in 2011. Therefore, pensions and benefits have not kept pace with rising costs. For example, $15,300 in 2010 is equivalent in purchasing power to about $20,172.85 today, an increase of $4,872.85 over 12 years. The dollar had an average inflation rate of 2.33% per year between 2010 and today, producing a cumulative price increase of 31.85%.
This means that today's prices are 1.32 times higher than average prices since 2010, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 75.845% of what it could buy back then.
The inflation rate in 2010 was 1.64%. The current inflation rate compared to last year is now 8.54%. If this number holds, $15,300 today will be equivalent in buying power to $16,607.00 next year.
This bill would provide a one-time payment to retired public employees and beneficiaries at a time when the State has seem a record increase in revenues. These revenues should be used to give some relief to the dedicated public employees and their beneficiaries who have seen the purchasing power of their pensions and benefits deteriorate over the past 10 years.
