The law says the maximum contribution is $1,150. Does the amount ever increase and if so, how?
Pursuant to N.J.A.C. 5:30-14.9, the maximum contribution may be increased by a percentage annually determined by the Director of the Division of Local Government Services based on the Consumer Price Index of Trenton/Philadelphia. Increases to a plan’s award are optional, at the discretion of the sponsoring agency. If the original adopting resolution or ordinance included language allowing for CPI adjustments, then the local unit may adjust the maximum allowance by resolution since the public has already approved the increase. If the original resolution or ordinance did not include language allowing for CPI adjustments, the sponsoring agency must amend the original documents to provide for the increase. If a sponsoring agency wants to increase the maximum contribution and by doing so its LOSAP budget does not exceed the amount previously approved by public question, the CPI index factor may be used and is not subject to a public hearing. If, however, the approved budget amount will incr
