Bill Text: NJ S2854 | 2022-2023 | Regular Session | Introduced


Bill Title: Requires cost of living increase in each State fiscal year for retiree or beneficiary in PERS, TPAF, PFRS, SPRS, and JRS; makes appropriation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-06-14 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S2854 Detail]

Download: New_Jersey-2022-S2854-Introduced.html

SENATE, No. 2854

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED JUNE 14, 2022

 


 

Sponsored by:

Senator  SAMUEL D. THOMPSON

District 12 (Burlington, Middlesex, Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Requires cost of living increase in each State fiscal year 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 retired public employees and beneficiaries, amending and supplementing P.L.1958, c.143, and making an appropriation.

 

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

 

     1.  (New section)  a.  In each State fiscal year commencing in State fiscal year 2023, 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 originally granted to any retirant and the monthly pension or survivorship benefit originally granted to 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.

     b.  (1) Notwithstanding the provisions of any law to the contrary, the funds sufficient to provide in each State fiscal year for the costs of the adjustments made pursuant to subsection a. of this section shall be paid by the State and shall be appropriated from the State General Fund in each annual appropriations act 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 each State fiscal year to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to provide for the annual cost of the adjustments in retirement allowances, pensions, and survivorship benefits and necessary administrative costs made pursuant to subsection a. of this section.

     c.  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.

     d.  No further adjustments shall be made in a State fiscal year pursuant to subsection a. of this section for the retirants and beneficiaries in the State part or the local part, or both, of the various retirement systems and funds specified in subsection a. of this section when an adjustment in accordance with the "Pension Adjustment Act", P.L.1958, c.143 (C.43:3B-1 et seq.) has been reactivated by a board, commission, or committee for the State part or the local part, or both, of a retirement system or fund pursuant to law specified in section 2 of P.L.1958, c.143 (C.43:3B-2) or an adjustment has been made by a board, commission, or committee for the State part or local part, or both, pursuant to authority granted by law.  The State shall continue to fund in each State fiscal year the annual costs of the adjustments granted under subsection a. of this section prior to a reactivation by a board, commission, or committee.

     e.  The State shall not prefund, and a retirement system and fund specified in subsection a. of this section shall not require the prefunding of, the costs of this section.  The costs of this section shall not be considered an unfunded liability of a State-administered retirement system.

 

     2.  Section 2 of P.L.1958, c.143 (C.43:3B-2) is amended to read as follows:

     2.    The monthly retirement allowance or pension originally granted to any retirant and the pension or survivorship benefit originally granted to any beneficiary shall be adjusted in accordance with the provisions of this act provided, however, that:

     a.     The maximum retirement allowance, without option, shall be considered the retirement allowance originally granted to any retirant who, at retirement, elected an Option I allowance pursuant to the provisions of the statutes stipulated in subsection b. of section 1 of this act (C.43:3B-1); and

     b.    the minimum pension granted to any beneficiary stipulated in subsection d. (4) of section 1 of this act (C.43:3B-1), shall be considered the pension originally granted to such beneficiary.

     Pension adjustments shall not be paid to retirants or beneficiaries who are not receiving their regular, full, monthly retirement allowances, pensions or survivorship benefits.  The adjustment granted under the provisions of this act shall be effective only on the first day of a month, shall be paid in monthly installments, and shall not be decreased, increased, revoked or repealed except as otherwise provided in this act.  No adjustment shall be due to a retirant or a beneficiary unless it constitutes a payment for an entire month; provided, however, that an adjustment shall be payable for the entire month in which the retirant or beneficiary dies.

     Commencing with the effective date of P.L.2011, c.78 and thereafter, no further adjustments to the monthly retirement allowance or pension originally granted to any retirant and the pension or survivorship benefit granted to any beneficiary shall be made in accordance with the provisions of P.L.1958, c.143 (C.43:3B-1 et seq.), unless the adjustment is made pursuant to section 1 of P.L.      , c.        (C.      )(pending before the Legislature as this bill) or reactivated as permitted by law. 

     This provision shall not reduce the monthly retirement benefit that a retirant or a beneficiary is receiving on the effective date of P.L.2011, c.78 when the benefit includes an adjustment granted prior to that effective date. 

     The Board of Trustees of the Police and Firemen's Retirement System may adjust the monthly retirement allowance or pension of its retired members in accordance with subsection b. of section 13 of P.L.1944, c.255 (C.43:16A-13).

     The Board of Trustees of the Public Employees' Retirement System may adjust the monthly retirement allowance or pension of its retired members in accordance with subsection b. of section 17 of P.L.1954, c.84 (C.43:15A-17).

     The Board of Trustees of the Teachers' Pension and Annuity Fund may adjust the monthly retirement allowance or pension of its retired members in accordance with subsection b. of N.J.S.18A:66-56.

     The Board of Trustees of the State Police Retirement System may adjust the monthly retirement allowance or pension of its retired members in accordance with subsection o. of section 30 of P.L.1965, c.89 (C.53:5A-30).

     The State House Commission of the Judicial Retirement System may adjust the monthly retirement allowance or pension of its retired members in accordance with subsection j. of section 29 of P.L.1973, c.140 (C.43:6A-29).

(cf: P.L.2018, c.55, s.1)

 

     3.  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 b. 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 adjustments in retirement allowances, pensions, and survivorship benefits and necessary administrative costs under section 1 of this act.

 

     4. This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would provide for an annual cost of living increase for 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 funded by the State in each State fiscal year on a pay-as-you-go basis commencing in State fiscal year 2023.  The manner of increase would not statutorily establish an unfunded liability or debt of the State and would not require prefunding of future increases.  Increases would be subject to annual appropriations.  The State would not provide for an increase in any year in which an increase is otherwise provided by the retirement system under authority of current law.

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

     The bill requires the State to fund the cost of these increases for all retired public employees and beneficiaries, subject to annual appropriations.

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