N.J. Stat. § 43:13-22.47
On or before October 1, 1969 and by the same date in each subsequent year, the Director of the Division of Pensions of the State Department of the Treasury shall review the index and determine the percentum of change in the index from the retirement year index pursuant to the provisions of the Pension Increase Act. The percentage of adjustment in the pensions shall be 1/2 of the percentum of change.
The director shall include amounts sufficient to adjust the retirement allowances or pensions payable to all eligible retirants by 1/2 of the percentum of change in the index as such retirement allowances or pensions may have been originally granted, or increased for certain retirants in accordance with the provisions of the Pension Increase Act (P.L. 1969, c. 169). The director shall notify the secretary of the retirement system of the percentage of adjustment for the applicable year.
In no instance shall the amount of the pension originally granted and payable to any retirant be reduced as a result of this adjustment.
For purposes of this section a "retirant" shall include all retirants except those whose pension commenced within the 3 calendar years prior to the first of the month in which the adjustment is to become effective in any year.
N.J.S. § 43:13-22.47