Be Careful What You Wish For...
Recently many citizens have been feeling the effects of inflation on our day to day living. With this and its consequences on our budgets there has been information running through Facebook and other social media that bills are in place to reinstate our COLA.
News of bills being introduced in the Senate and Assembly, with the support of many legislators, are hitting the social media circuit. Getting the correct info is crucial at this time.
The NJEA Director of Government relations has released this statement…”S-260 is not a new bill. It has been around since 2011 and has continued to be reintroduced each session by Senator Turner. A-2758 is new and is the Assembly companion bill to S-260. S-260 has never moved since it was introduced in 2011.
The group below was formed several years ago as I understand it to support the push for a COLA reinstatement and was made up of groups largely police and fire which have better funded systems then TPAF and PERS. We do have to recognize that a reinstatement of the COLA will have an impact on the funded status of the pension system. We have been fortunate that our political work/organizing have resulted in Governor Murphy’s re-election along with a group of legislators that have continued to increase funding to our pension systems and have resulted in the Governor proposing to include for the second year the full actuarially required pension payment. That said, we have heard our members and have been doing studies on the pension system and the results of what we may be able to attempt to do without causing damage to the improvements in funding levels. It will take us some time, but we need to make sure we do our homework before we move down that road looking to restore the COLA because we need to ensure the long term health of the system for all our current and future retirees.
As always, our members can always check the NJREA website and the NJREA newsletter for updated information on all issues that are important to our NJREA members.”
These bills have been around since 2011…Sweeney took the COLA away! The COLA can’t be reinstated until the Pension is funded to I believe 80%… which it should reach in the year 2042.”
Be careful what you wish for. If the COLA is reinstated at this time it would diminish pension funding and could lower the pension you receive now.