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A 2996

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.

2024-2025 Regular Session Introduced by Tennille McCoy and 1 co-sponsor

Provides a targeted 2023 and 2024 COLA, equal to 100% of CPI changes, for low-income retirees (≤150% FPL) in five NJ pension systems, funded from the General Fund.

Introduced in the Assembly, Referred to Assembly State and Local Government Committee
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Bill Summary · A 2996

Bill A 2996 — Summary

Overview

Bill A 2996 would provide a targeted cost-of-living adjustment (COLA) for certain retirees and beneficiaries across five New Jersey public pension systems. The adjustment would occur in two specific years (2023 and 2024) and would apply only to those whose current monthly benefit is at or below 150% of the federal poverty level (FPL) for a household of one. The bill would fund these increases with appropriations from the State General Fund.

What the bill would do

  • Establish a year-specific COLA for eligible retirees and beneficiaries in:
    • Teachers' Pension and Annuity Fund (TPAF)
    • Judicial Retirement System (JRS)
    • Public Employees' Retirement System (PERS)
    • Police and Firemen's Retirement System (PFRS)
    • State Police Retirement System (SPR S)
  • The adjustment would be provided only on January 1, 2023, and January 1, 2024.
  • The COLA would be calculated as 100% of the percent change in the Consumer Price Index (CPI) as determined under the Pension Adjustment Act, replacing the historical practice under that act of providing a 60% share of CPI changes.

Eligibility and amount

  • Eligibility: Retirees and beneficiaries whose monthly retirement allowance, pension, or survivorship benefit is at or below 150% of the federal poverty level for a single-person household on January 1, 2023 or January 1, 2024.
  • The increase is provided to the current recipient, not to new retirees in those years.

Funding and fiscal notes

  • The cost of the adjustments (and related administrative costs) would be paid by the State and appropriated from the State General Fund for Fiscal Years 2023 and 2024, and for each year thereafter.
  • The Director of the Division of Pensions and Benefits (DPB), or the relevant board of trustees (for PFRS), must certify the necessary amount to the Director of the Division of Budget and Accounting in the Treasury each year to fund the increase and administrative costs.

Waivers and administration

  • Eligible recipients may waive all or part of the increase by filing a written waiver with the appropriate administering body at least 30 days before the desired effective date; waivers are effective the first day of the following month.
  • Waivers may be withdrawn at any time, with the increase resuming in the month following withdrawal.
  • The act includes explicit payment and administrative provisions to implement and fund the adjustment.

Effective date and status

  • Effective date: Immediate upon enactment.
  • Status: Introduced in the Assembly on January 9, 2024; referred to Assembly State and Local Government Committee.
  • Related bill: S 2475 (companion).

Why this matters

  • Aims to provide targeted relief to the lowest-income retirees across multiple state pension systems.
  • Reinstates a more generous CPI-based COLA (100% of CPI change) for two years, diverging from the post-2011 status quo that removed annual COLAs.
  • Requires dedicated funding and annual certification to ensure the fiscal viability of the adjustments.

Compiled from official sources — confirm details with the bill’s official record.

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