New Jersey Senate Bill S2475

New Jersey 2024-2025 Regular Session

• Introduced: 2/5/24
• Refer: 2/5/24

Caption

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.

Impact

The legislation reinstates a form of cost of living adjustment that had been previously provided under the Pension Adjustment Act, which is significant given that annual increases were halted in 2011. The current bill proposes that the adjustment should be calculated at 100 percent of the change in the Consumer Price Index rather than the 60 percent that was previously provided prior to the cessation of annual adjustments. Funding for these increases will be appropriated by the state, indicating a continued commitment to support retirees whose benefits have not kept pace with inflation.

Summary

Senate Bill S2475 aims to provide a cost of living increase in retirement allowances for certain public employees and their beneficiaries in New Jersey. Specifically, it targets those receiving payments from various public retirement systems, including the Teachers' Pension and Annuity Fund and the Public Employees' Retirement System, among others. Eligible retirees and beneficiaries will receive this increase only if their benefits are at or below 150 percent of the federal poverty level, based on the values set for a single-person household. This increase is set to be effective on January 1, 2023, and January 1, 2024, ensuring timely assistance for those in most need.

Contention

While the bill largely aims to support low-income retirees, there may be varying opinions on the funding and fiscal implications involved. Critics could argue that it puts additional pressure on the state's budget, especially if the costs associated with the adjustments are higher than anticipated. Proponents, on the other hand, stress the necessity of ensuring that retired public employees can afford essential living expenses, highlighting the importance of safeguarding against poverty among senior citizens and those who have devoted their careers to public service.