New Jersey Assembly Bill A4713

New Jersey 2022-2023 Regular Session

• Introduced: 10/11/22
• Refer: 10/11/22

Caption

Requires cost of living increase to be granted in each of two calendar years for certain retired members and beneficiaries of PFRS; makes appropriation.

Impact

The proposed adjustments under this bill are significant, particularly given the specified poverty threshold. For instance, in 2022, the federal poverty level for a household of one was approximately $13,590, making the threshold for eligibility $61,155. The adjustments would be based on the consumer price index and could range from a minimum of 1 percent to a maximum of 3 percent. This approach aims to preserve the purchasing power of retirees amidst inflationary pressures, addressing a crucial fiscal need for many individuals who may have worked in public safety sectors.

Summary

Assembly Bill A4713 in New Jersey seeks to provide cost of living adjustments for retired members and beneficiaries of the Police and Firemen's Retirement System (PFRS). The bill mandates that these adjustments be granted in two subsequent calendar years, specifically on January 1 of the year following the bill's enactment and January 1 of the next following year. This is designed to assist those whose retirement allowances or pensions are at or below 450 percent of the federal poverty level, ensuring they maintain a basic standard of living.

Contention

While the bill is framed as a necessary support for retired public safety workers, its implementation may raise questions regarding funding and budget implications for the state. The bill stipulates that the costs associated with these adjustments shall be covered by appropriations from the state general fund, which could place additional strain on state resources. Moreover, there may be differing opinions on whether this measure sufficiently addresses the broader economic challenges faced by public employees in retirement, raising discussions on the need for broader revisions to pension systems or funding strategies.