N.J. Admin. Code § 17:16-71.4 - Limitations

(a) The following conditions shall be met at the time of purchase, in the case of investments in publicly traded securities, and at the time of presentation to the Investment Policy Committee in accordance with N.J.A.C. 17:16-69.9(a)1, in the case of real asset investments made pursuant to N.J.A.C. 17:16-71.2(a)1:

1. The Pension and Annuity Funds' proportionate interest in the aggregate market value of the investment in real estate under this subchapter shall not exceed 13 percent of the combined assets of all of the Pension and Annuity Funds;

2. Not more than five percent of the assets of any eligible fund (other than a Pension and Annuity Fund or Common Pension Fund) shall be directly invested in the debt of any one obligor;

3. The total amount directly invested in the debt of any one obligor by the Pension and Annuity Funds and Common Pension Funds, in the aggregate, shall not exceed two percent of the combined assets of all the Pension and Annuity Funds;

4. In accordance with N.J.S.A. 18A:56-8, investments for the Trustees for the Support of Public Schools shall not be made in the obligations of any municipality, the total indebtedness of which, including the school debt, exceeds 30 percent of the assessed valuation of all the real and personal property therein; in ascertaining the total indebtedness, credit shall be allowed only for such moneys or property as shall be in the sinking funds; and

5. In accordance with N.J.S.A. 18A:56-8, investments for the Trustees for the Support of Public Schools shall not be made in the obligations of any county, the total indebtedness of which exceeds in the aggregate 15 percent of the total assessable valuation of all taxable property therein.

(b) If, subsequent to initial purchase, the limitations in (a) above are exceeded, then the Council shall be notified at the next regularly scheduled meeting of the Council. The Division may be granted a six-month period of grace to reduce the level of participation below the maximum levels, except that the period of grace may be extended for additional four-month periods with the approval of the Council.

Notes

N.J. Admin. Code § 17:16-71.4

Amended by 51 N.J.R. 1130(b), effective 7/1/2019 Amended by 52 N.J.R. 1338(b), effective 7/6/2020 Amended by 53 N.J.R. 1857(a), effective 11/1/2021