Freezing existing pension plans at the State and local levels means that the plans would be closed to new members and that existing members would no longer accrue additional benefits under those plans. Existing plan assets and future State contributions would be used fund the benefits of existing retirees and the benefits accrued by employees through the date of the freeze. The plan-funded 46 pension benefits of existing retirees would not be affected, and no one would lose a benefit credit for service before the freeze.
But what about the cost-of-lving-adjustments on pensions that were eliminated in 2011 and have been the subject of court action ever since? As commenter truthnolie noticed when you follow that 46 next to the word ‘plan-funded’ to its footnote:
46 The cost of living adjustments (COLAs) at issue in Berg v. Christie, 436 N.J. Super. 220, 241 (App. Div. 2014) are not funded by the existing plan and would not be preserved or restored under the Commission’s proposal.