A5175 was introduced back in January, Save Jerseyans, but as of this writing it hasn’t moved out of the Democrat-controlled Assembly State and Local Government Committee.
Will that change in an election year?
“Assemblywoman Vicky Flynn and I are proud to support A5175, legislation that finally restores Cost of Living Adjustments (COLA) for our retired Police and Firemen,” said Assemblyman Gerry Scharfenberger (R-13) in a recent social media post. “These men and women dedicated their careers to serving our communities — it’s only right that we honor our promise to them. This bill is a critical step toward fairness, and we will continue fighting to ensure our retirees receive the respect and support they have earned.”
The payments were suspended back in 2011 as part of then-Governor Chris Christie’s pension reforms. According to an analysis performed by NJ Spotlight, “a retiree would need more than $100,000 today to maintain the same buying power as an annual pension that was worth $75,000 in 2011.”
Click here to read the full bill.
The cost is expected to come in around $86 million annually and financed by way of a state appropriation. For now, the increases would be limited to police and fire retirees.
“Although this bill does not reinstate COLAs for other retirees, it serves as the first step in reinstating COLAs for all retirees of the State-administered retirement systems,” notes the bill’s explanatory statement. “Through the prioritization of PFRS, the State will begin this process with retired first responders, police and firefighters, to provide them greater financial security and stability at a time when inflation has significantly eroded the value of their retirement benefit payments, which are already based on the lower salaries of years ago. To that end, the bill includes restrictions intended to limit costs and focus on segments among PFRS retirees expected to be most in need of an immediate benefit.”
