N.J. Admin. Code § 17:4A-9.1

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

Section 17:4A-9.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest or reinvest the moneys of the PFRSNJ-managed fund assets in international government and agency obligations, provided that the obligations have a credit rating of at least: Baa3 or higher by Moody's Investor Service, Inc., BBB- or higher by Standard & Poor's Corporation, and BBB- or higher by Fitch Ratings, except that two of the three ratings is sufficient and one of the three ratings is sufficient if only one rating is available. Subsequent to purchase, if the ratings fall below the minimum rating for such obligations, the obligations do not have to be sold.

(b) Notwithstanding (a) above, the Board may invest and reinvest the PFRSNJ-managed fund assets in: global debt obligations, state, municipal, and public authority obligations, collateralized notes and mortgages, international government and agency obligations, non-convertible preferred stock, and mortgage-backed pass-through securities that do not meet the minimum credit ratings set forth in this section and at N.J.A.C. 17:4A-6.1, 7.1, 8.1, 15.1, and 17.1, respectively; provided, however, the aggregate market value of such investments shall not exceed eight percent of the total PFRSNJ fund assets.

(c) Notwithstanding the restrictions set forth at (a) above, the Board may authorize the purchase of international government and agency obligations on a case-by-case basis if the Board determines such purchase to be 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-9.1

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

Recodified from 17:4A-9.2 by 56 N.J.R. 795(a) effective 5/6/2024