S3447

An Act concerning cost of living increases for certain retired members and beneficiaries of the Police and Firemen’s Retirement System and supplementing P.L.1958, c.143 (C.43:3B-1 et seq.) and making an appropriation.

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

1. a. (1) An adjustment shall be granted in accordance with this section to the monthly retirement allowance or pension of a retired member, and the monthly pension or survivorship benefit of a surviving spouse, child, or beneficiary, that is provided by the Police and Firemen's Retirement System, established pursuant to P.L.1944, c.255 (C.43:16A-2 et seq.). An adjustment shall be granted only if the amount of an allowance, pension, or benefit originally granted, without any prior cost of living adjustments that had been provided, was at or below 450 percent of the federal poverty level as set for a household of one for the calendar year in which this act, P.L. , c. (C. )(pending before the Legislature as this bill), becomes effective.

(2) An adjustment shall be granted in accordance with paragraph (1) of this subsection to a retired member who is receiving a retirement allowance or pension, other than for accidental or ordinary disability, only if the retired member has attained the age of 62 years as of January 1 of the calendar year following the effective date of this act.

(3) An adjustment shall be granted in accordance with paragraph (1) of this subsection to any other retired member, surviving spouse, child, or beneficiary regardless of age.

b. An adjustment shall be granted only on January 1 of the calendar year following the effective date of this act and on January 1 of the following calendar year. The adjustment granted in the second calendar year shall be provided in each calendar year thereafter in the same amount.

c. As used in this section “CPI-W” means the annual average over a 12-month period beginning September 1 and ending August 31 of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), All Items Series A, of the United States Department of Labor, for the NY-Northeastern New Jersey region.

The adjustment shall be calculated by first determining the allowance, pension, or benefit originally granted, without any prior cost of living adjustments that had been provided, as a percentage of the federal poverty level to identify the range within which it falls on the chart set forth herein. The percentage of the CPI-W for that range shall be calculated and then used with the amount of the allowance, pension, benefit originally granted, without any prior cost of living adjustments that had been provided, to calculate the amount of the adjustment.

For the purposes of calculating the percentage of the CPI-W, the maximum CPI-W shall be three percent and the minimum shall be one percent.

The following chart shall be used to determine the percentage of the adjustment for each calendar year:

Annual retirement allowance, pension, or survivorship benefit as a percentage of federal poverty level for household of one.		Percentage of CPI-W to calculate adjustment.
		Percentage of CPI-W to calculate adjustment.
0.000%	150.000%	150.0% of CPI-W
150.001%	175.000%	120.0% of CPI-W
175.001%	200.000%	100.0% of CPI-W
200.001%	225.000%	85.0% of CPI-W
225.001%	250.000%	75.0% of CPI-W
250.001%	275.000%	67.5% of CPI-W
275.001%	300.000%	60.0% of CPI-W
300.001%	325.000%	50.0% of CPI-W
325.001%	350.000%	40.0% of CPI-W
350.001%	375.000%	30.0% of CPI-W
375.001%	400.000%	27.5% of CPI-W
400.001%	425.000%	23.0% of CPI-W
425.001%	450.000%	20.0% of CPI-W

d. (1) The cost of the adjustments granted in accordance with this section shall be paid by the State and shall be appropriated in each State fiscal year from the State General Fund to the Police and Firemen’s Retirement System.

(2) The Board of Trustees of the Police and Firemen’s Retirement System shall certify for each calendar year to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to pay for the cost of the adjustments in retirement allowances, pensions, and survivorship benefits granted in accordance with this section and for necessary administrative costs.

e. A retired member, surviving spouse, child, or beneficiary who is eligible to receive the adjustment to the retirement allowance, pension, or benefit in accordance with this section may waive, at any time, the right thereto by filing a written notice of waiver with the Board of Trustees of the Police and Firemen’s Retirement System. The application for the waiver of all or part of the adjustment shall be made by the retired member, surviving spouse, child, or beneficiary at least 30 days prior to the desired effective date on a form satisfactory to the board of trustees 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 adjustment in the retirement allowance, pension, or benefit shall commence with the payment for the next following month.

2. There is hereby appropriated from the State General Fund to the Police and Firemen's Retirement System such amount as shall be certified in accordance with paragraph (2) of subsection d. of section 1 of this act, P.L. , c. (C. )(pending before the Legislature as this bill), by 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 adjustment in retirement allowances, pensions, and survivorship benefits and of necessary administrative costs under section 1 of this act.

3. This act shall take effect immediately.

STATEMENT

This bill would provide for cost of living increases for certain retired members, surviving spouses, children, or beneficiaries who are receiving monthly payments from the Police and Firemen's Retirement System. The increases would be provided on January 1 of the calendar year following enactment of this bill and on January 1 of the next following calendar year.

The increase would be provided only when the amount of a retirement allowance, pension, or benefit originally granted was at or below 450 percent of the federal poverty level for a household of one. The federal poverty level for 2022 for a household of one is an annual amount of $13,590, and 450 percent of the federal poverty level for a household of one is an annual amount of $61,155.

In addition, the adjustment would be provided to retired members who are receiving a retirement allowance or pension, other than for accidental or ordinary disability, only if the retired member has attained the age of 62 years as of January 1 of the calendar year following the enactment of this bill. The adjustment would be provided to all other retired members, surviving spouses, children, or beneficiaries regardless of their age.

For the purposes of calculating an adjustment, the maximum consumer price index used would be three percent and the minimum would be one percent.

The bill defines the consumer price index as the annual average over a 12-month period beginning September 1 and ending August 31 of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), All Items Series A, of the United States Department of Labor, for the NY-Northeastern New Jersey region.

The bill requires the State to fund the cost of these increases and makes an appropriation for that purpose.

The adjustment would be calculated using the chart as follows:

Annual retirement allowance, pension, or survivorship benefit as a percentage of federal poverty level for household of one.		Percentage of CPI-W to calculate adjustment.
		Percentage of CPI-W to calculate adjustment.
0.000%	150.000%	150.0% of CPI-W
150.001%	175.000%	120.0% of CPI-W
175.001%	200.000%	100.0% of CPI-W
200.001%	225.000%	85.0% of CPI-W
225.001%	250.000%	75.0% of CPI-W
250.001%	275.000%	67.5% of CPI-W
275.001%	300.000%	60.0% of CPI-W
300.001%	325.000%	50.0% of CPI-W
325.001%	350.000%	40.0% of CPI-W
350.001%	375.000%	30.0% of CPI-W
375.001%	400.000%	27.5% of CPI-W
400.001%	425.000%	23.0% of CPI-W
425.001%	450.000%	20.0% of CPI-W