New Jersey § 43:10-5

§ 43:10-5.

a. If the board of chosen freeholders has adopted a resolution pursuant to section

2 1 of this act to adjust the amounts of pension benefits, then on or before October

1 next following the adoption of the resolution and by the same date in each subsequent

calendar year, the Director of the Division of Pensions and Benefits of the Department

of the Treasury shall review the index and determine the percentum of change in the

index from the benefit year index pursuant to the provisions of the “Pension Adjustment

Act,” P.L.1958, c. 143 ( C.43:3B-1 et seq. ). The percentage of adjustment in the pensions shall be 3 / 5 of the percentum change. The director shall notify the secretary of the pension commission of the percentage

of adjustment in the applicable year. b. The director shall certify to the pension commission the amounts sufficient to

adjust the pensions payable to all eligible retirants and beneficiaries by 3 / 5 of the percentum of change in the index as such pensions may have been originally

granted in accordance with the provisions of article 1 of chapter 10 of Title 43 of

the Revised Statutes or increased for certain retirants and beneficiaries in accordance

with the provisions of this act. Any adjustment so certified shall apply to all of the months of the following calendar

year for eligible retirants and beneficiaries. For those qualifying for the first time, the adjustment shall apply only to those

months of the following calendar year in which the retirant or beneficiary is eligible

to receive the adjustment. c. In no instance shall the amount of the pension originally granted and payable to

any retirant or beneficiary be reduced as a result of this adjustment. d. The employer shall bear the cost of the adjustment in the pensions payable to retirants

who retired from the employ of such employer and to beneficiaries of active or retired

members who were in the employ of the employer at the time of the member's death or

retirement. The employer shall appropriate the amount required to make such adjustments in each

county fiscal year, taking into account payments to be made to such retirants or beneficiaries

qualifying for this adjustment for the first time in that fiscal year. e. The adjustment in pensions provided for by this act shall commence provided that

there is appropriated the amount certified by the Director of the Division of Pensions

and Benefits of the Department of the Treasury to the Director of the State Division

of Budget and Accounting as set forth in the “Pension Adjustment Act,” P.L.1958, c.

143 ( C.43:3B-1 et seq. ). The adjustment in pensions shall continue to be paid so long as there shall be appropriated

the amount so certified. In the event that the necessary funds are not so appropriated, the adjustment in

pensions shall cease; no further payments shall be made by the employer; and a refund

shall be made by the pension fund to the employer of any balance unexpended on its

account. 1

N.J.S.A. § 43:10-5.6.