Revises apportionment of State lottery contributions.

Lower lottery funding floor for state pensions

Starting in state fiscal year 2026, New Jersey lowers the minimum lottery share for state pensions from 30% to 27%. This applies to the Common Pension Fund L investment account during the lottery contribution period. Starting in fiscal year 2029, the permanent minimum depends on average annual lottery sales and revenues over fiscal years 2026–2028. Both averages must meet their separate fiscal year 2025 levels to keep the 27% minimum; otherwise, it permanently returns to 30%. After the share falls to 27%, a missed full state pension contribution, as recommended by actuarial reviews, triggers an outside review. If that review finds the reduction did not increase transfers to the account, the minimum permanently returns to 30%. That return takes effect in the second fiscal year after the shortfall year, and no further reviews are required. The law does not directly change individual pension benefits.