TRENTON, N.J. – Assemblyman Alex Sauickie wants cost-of-living adjustments reinstated for retirees in state pension funds.

Some members of the Police and Firemen’s Retirement System would see automatic COLAs under a bill (A5175) Sauickie introduced Tuesday. Those automatic adjustments were suspended under a law passed in 2011 for then-current and future retirees. He said his legislation is a first step in eventually reinstating such adjustments for all state-administered retirement systems.

“The system has been underfunded for decades, putting not only the systems themselves but people’s futures in precarious financial conditions,” Sauickie (R-Ocean) said. “I want to see all pensions fully funded, but for now, prioritizing retired first responders, police and firefighters, will provide them with greater financial security, especially in this time of continued high inflation that has eroded the value of those retirement dollars.”

Automatic COLAs would be applied only to annual, ordinary disability and accidental disability pension benefits for those who have been retired for at least 10 years and would only apply to future pension payments. Surviving benefactors would also be eligible to receive that adjustment.

Those retirees receiving up to $75,000 of pension benefits will receive a COLA tied to the CPI for Urban Wage Earners and Clerical Workers that first year. Those whose benefits exceed $75,000 will see an increase of 1% annually. The mandate would be financed through the state’s general fund.

“It’s past time that Trenton makes right on its broken promises to those who put in their time and money. It was bipartisan blundering that caused that problem, and I’m happy to say my bill has bipartisan support to start fixing it,” Sauickie added.

The bill gained significant bipartisan momentum with Assemblyman Joe Danielsen (D-Somerset) signing on as a second prime sponsor.

“I want to thank Assemblyman Danielsen for recognizing the importance of this bill and signing on,” Sauickie said. “This legislation addresses a long-overdue injustice, and his support shows the bipartisan commitment needed to finally restore fairness for retirees.”

N.J. Fraternal Order of Police, the Professional Firefighters Association of New Jersey, the New Jersey State Retired Police and Firemen’s Association, and the N.J. PRFS COLA Forum endorsed his bill. Both Ken Buck of NJ PFRS COLA Forum and Ronald Di Giovanni of the N.J. SRPFA said after 13 years without adjustments, action is needed.

“I applaud Assemblyman Sauickie and any legislator who is willing to fight to restore COLAs for our members. I will always give full support to efforts to reach that goal,” Matthew Caliente, president of PFANJ, said.

In contrast to other bills aiming to restore COLA in unrealistic ways, Sauickie highlighted that his legislation takes an incremental and fiscally responsible approach. It prioritizes retirees with the greatest need – many of whom may be hovering at the federal poverty level – while costing a fraction of the $700 million in legislative additions to the governor’s proposed $56.6 billion budget.

“The New Jersey Fraternal Order of Police supports any efforts to restore the COLA for law enforcement and it believes this bill is the best one it has seen so far,” NJ FOP President Bob Fox said.