New Jersey lawmakers filed legislation Thursday that would provide an annual cost-of-living adjustment in the weekly workers compensation benefit rate in cases involving workers who are totally or permanently disabled.
Assembly Bill 4559 would amend current law, which requires annual adjustments in workers comp benefit rates for death and permanent total disability to be paid from the state’s Second Injury Fund for injuries sustained before January 1, 1980.
The measure would extend adjustments paid from the fund to apply to benefits paid after July 1, 2025, for injuries originating after Dec. 31, 1979.
Legislators said the bill is designed to address a backlog of retroactive benefits.
Public safety workers who otherwise already receive COLAs would be exempt from the legislation.
The COLA supplement provided for in the bill would be reduced by the original amount of an injured worker’s Social Security retirement or survivor benefits but not reduced by cost-of-living increases in those Social Security benefits.
The bill was referred to the Assembly Labor Committee.