N.J. Admin. Code § 17:4A-8.2

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

Section 17:4A-8.2 - Limitations

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

1. No amount in excess of 25 percent of any one issue may be purchased directly. For the purpose of this limitation, the issue size shall be considered as the principal amount issued pursuant to all classes of securities payable from the returns generated by the underlying collateral;

2. Not more than five percent of the total PFRSNJ fund assets shall be directly invested in the obligations of any one issue; and

3. The total amount 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 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-8.2

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

Recodified from 17:4A-8.4 by 56 N.J.R. 795(a) effective 5/6/2024