Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
Senator DAWN MARIE ADDIEGO
District 8 (Atlantic, Burlington and Camden)
SYNOPSIS
Provides for investment of State pension fund assets in certain debt obligations issued by New Jersey Transportation Trust Fund Authority and New Jersey Infrastructure Bank.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for the investment of State pension fund assets in certain debt obligations issued by the New Jersey Transportation Trust Fund Authority and the New Jersey Infrastructure Bank, supplementing P.L.1950, c.270 (C.52:18A-79 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of section 11 of P.L.1950, c.270 (C.52:18A-89) or any other law, rule, or regulation to the contrary, the Director of the Division of Investment in the Department of the Treasury is authorized to invest and reinvest the assets of any pension or annuity fund under the jurisdiction of the division, and otherwise allocated for investment in fixed-income securities, in bonds, notes, or other obligations at fair market value, issued and guaranteed as to interest and principal by, or on behalf of, the New Jersey Transportation Trust Fund Authority to provide for any of the authority's corporate purposes and the New Jersey Infrastructure Bank to capitalize the State Transportation Infrastructure Bank Fund established pursuant to section 34 of P.L.2016, c.56 (C.58:11B-10.4) with monies to effectuate the purposes of the fund.
2. This act shall take effect immediately.
STATEMENT
This bill provides for the investment of State pension fund assets in certain debt obligations that are issued by the New Jersey Transportation Trust Fund Authority and the New Jersey Infrastructure Bank.
Under the bill, the Director of the Division of Investment in the Department of the Treasury is authorized to invest and reinvest the assets of any pension or annuity fund under the jurisdiction of the division in bonds, notes, or other obligations, issued and guaranteed as to interest and principal by, or on behalf of, the New Jersey Transportation Trust Fund Authority to provide for any of the authority's corporate purposes and the New Jersey Infrastructure Bank to capitalize the State Transportation Infrastructure Bank Fund with monies to effectuate the purposes of the fund. The bill provides that the investment of pension fund assets in those securities may be made regardless of whether the investments would meet the standard of care prescribed for the making of investments by current law, but specifies that any investments so made in bonds, notes, or other obligations issued by the New Jersey Transportation Trust Fund Authority and the New Jersey Infrastructure Bank must be made from assets that are otherwise allocated for investment in fixed-income securities and only to the extent that the bonds, notes, or other obligations are available for investment at fair market value.
The bill is scheduled to take effect immediately upon enactment.