PWANJ IS PUSHING FOR CHANGE — AND GETTING BEHIND #COLANOW
The Public Works Association of New Jersey (PWANJ) is pushing for change and getting behind the #COLANOWmessage.
For the men and women who dedicate their careers to public service, retirement security is not simply a benefit — it is part of the compensation they earned throughout their working lives. Public employees contributed to their pension systems paycheck after paycheck, often making career and salary decisions based on the retirement benefits that were promised to them.
Today, many New Jersey public-sector retirees have gone 15 years without a Cost-of-Living Adjustment (COLA).
That means a retirement benefit that may have been adequate when a person retired has continued to lose purchasing power as the cost of housing, food, healthcare, utilities and everyday necessities has increased.
What Happened to COLA?
New Jersey’s pension systems underwent significant changes under P.L. 2011, c. 78 — commonly known as Chapter 78, which became effective June 28, 2011. Among those changes, COLA increases were suspended for current and future retirees across the State-administered retirement systems. Chapter 78 also increased employee pension contribution rates, including raising PERS and TPAF contributions from 5.5% to 6.5%, with additional increases ultimately bringing them to 7.5%. PFRS contributions increased from 8.5% to 10%.
The law established a pathway for consideration of restoring COLAs once retirement systems reached specified funded-ratio targets. The statutory framework identified a target progressing from 75% toward 80% funded status.
But for retirees who have already spent years living without an adjustment, waiting for pension funding benchmarks does not stop inflation.
Retirees Are Not the Enemy
The argument behind #COLANOW is straightforward:
Retired public employees are not responsible for the State’s historic pension funding decisions.
They worked under the rules established by the State. They made pension contributions. They completed decades of public service. Many accepted compensation and negotiated employment terms with the understanding that their pension would provide a dependable source of retirement income.
A COLA is designed to help protect that income from inflation. Without one, the purchasing power of a fixed retirement benefit steadily declines.
That is particularly significant for retirees who may spend 20 or 30 years in retirement.
A modest annual adjustment can compound over time. Conversely, going year after year without an adjustment means retirees must absorb the full impact of rising costs on a benefit that does not automatically increase.
Why This Matters to Public Works
This is bigger than retirees.
New Jersey’s public works departments depend on experienced employees to maintain roads, infrastructure, equipment, facilities and essential municipal services. The ability to attract and retain qualified employees is directly connected to whether public service remains a competitive and sustainable career.
PWANJ has consistently emphasized the importance of finding the best opportunities for municipalities and making financially responsible decisions in a changing marketplace. Its statewide Equipment and Services Exposition brings public works officials, vendors and decision-makers together to identify new technology, equipment and services that can improve municipal operations.
The same principle applies to the workforce:
Municipalities need experienced people — and experienced people need to know that a career in public service is valued.
Restoring a meaningful COLA can be part of that conversation.
The 25-Year Wait Is Not a Solution for Today’s Retirees
State pension officials have tied broad COLA restoration to pension funding benchmarks. But a wait measured in decades does little for retirees who have already spent 15 years without an adjustment.
The State itself confirms that COLAs remain suspended for current and future retirees under Chapter 78.
That is why the discussion has moved beyond simply asking when pension funds will reach a particular funding level.
The question is now:
What can be done today to provide a responsible, sustainable COLA for the people who already earned their retirement benefits?
Legislative Efforts Are Moving the Conversation Forward
There are now multiple legislative efforts focused on restoring COLAs for specific groups of retirees.
For example, S2065, introduced in the 2026–2027 legislative session, would reinstate automatic COLAs for certain members of the Police and Firemen’s Retirement System (PFRS). The bipartisan bill was introduced in January 2026 and referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.
Other proposals and advocacy efforts have sought solutions that would provide COLAs sooner rather than waiting decades for pension funding targets to be reached.
The New Jersey State Fraternal Order of Police has also launched “First Responders United for COLA,” calling for a permanent and sustainable solution and emphasizing cooperation among retirees, labor organizations, stakeholders and legislators.
That growing coalition demonstrates that the issue extends well beyond one organization or one pension system.
A Responsible Path Forward
Supporting #COLANOW does not have to mean ignoring the State’s pension obligations or financial realities.
It means recognizing that there are retirees who have already done their part.
They worked.
They contributed.
They served their communities.
They followed the rules that were established for them.
And they deserve a serious discussion about restoring the purchasing power of the retirement benefits they earned.
The solution should be responsible, sustainable and fair — but it should also recognize the very real financial strain that 15 years without a COLA has placed on New Jersey’s public-sector retirees.
PWANJ Is Ready to Push for Change
PWANJ represents a profession built around service, responsibility and investment in New Jersey’s communities.
That means recognizing the people who have spent their careers doing that work.
PWANJ is pushing for change.
PWANJ is standing with the public employees and retirees who earned their benefits through decades of service.
PWANJ is getting behind #COLANOW.
Because protecting the people who built and maintained New Jersey’s communities is not just about the past.
It’s about the future of public service in New Jersey.