N.J. Admin. Code § 17:4A-12.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:4A-12.2 - Limitations

(a) At the time of initial purchase, the following conditions shall be met:

1. The total investment of total PFRSNJ fund assets in certificates of deposit of any one issuer shall not exceed 10 percent of the issuer's outstanding debt; and

2. The total amount of the PFRSNJ-managed fund assets directly invested in the equity and fixed income obligations of any one issuer and affiliated entities shall not exceed five percent of the total PFRSNJ fund assets.

(b) If, subsequent to the initial purchase, the limitations at (a) above are exceeded, then the Board shall be notified at the next regularly scheduled meeting of the Board. The Board may grant a six-month grace period to reduce the level of participation to at or below the maximum levels, except that the grace period may be extended by one or more additional four-month periods with the approval of the Board, provided the Board determines such extension is in the financial best interest of the PFRSNJ and its beneficiaries and is consistent with the Board's fiduciary responsibility.

N.J. Admin. Code § 17:4A-12.2

Adopted by 53 N.J.R. 1147(a), effective 7/6/2021

Recodified from 17:4A-12.4 by 56 N.J.R. 795(a) effective 5/6/2024