New Jersey Senate Bill S3447

New Jersey 2022-2023 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23

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 bill delineates that retirement benefits will be adjusted based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), potentially allowing for adjustments between one and three percent annually. This law aims to safeguard the financial health of retired police and fire personnel, acknowledging the rising costs of living. The state has committed to funding these increases, which necessitates an appropriation from the State General Fund to the Retirement System, ensuring that the adjustments do not compromise the system's financial integrity.

Summary

Bill S3447 focuses on providing cost of living increases for retired members as well as their beneficiaries who receive payments from the Police and Firemen's Retirement System in New Jersey. The bill mandates that these increases be made on January 1 of the year following its enactment and again on January 1 of the subsequent year. Importantly, the increases will only apply to those whose retirement allowance or pension does not exceed 450 percent of the federal poverty level for one person, calculated as of the year of enactment. For 2022, this threshold amounts to an annual income of $61,155.

Contention

Notable points of contention may arise regarding the eligibility criteria, particularly the stipulation requiring that certain retired members reach the age of 62 before receiving the pension adjustment. Critics may argue that this age limit could unfairly exclude younger retirees or beneficiaries who have financial needs. Additionally, there may be discussions surrounding the appropriations process, with potential concerns about the long-term financial implications for the state budget as more retirees potentially qualify for these increases.