N.J. Admin. Code § 17:16-65.2
Current through Register Vol. 56, No. 24, December 18, 2024
Section 17:16-65.2 - Permissible investments(a) The Director and/or any persons, entities or organizations engaged by the New Jersey State Employees Deferred Compensation Board (DCP Board) to invest plan assets (collectively, the Portfolio Manager) shall invest the assets of the New Jersey State Employees Deferred Compensation Plan (DCP) in investment options which are legal investments for fiduciaries of trust estates in New Jersey which are permitted under N.J.S.A. 52:18A-163 et seq., subject to the applicable provisions of the regulations of the Council, and selected pursuant to the procedures described in this subchapter, which investment options may include the Common Funds and shall include the Outside Funds.(b) Moneys in the Common Funds shall be invested as follows: 1. The New Jersey State Employees Deferred Compensation Fixed Income Fund will be invested in fixed income securities having a maturity of one year or more.2. The New Jersey State Employees Deferred Compensation Equity Fund and the New Jersey State Employees Deferred Compensation Small Capitalization Equity Fund will be invested in such equity investments as are permitted under N.J.A.C. 17:16-42; provided that, in the case of the New Jersey State Employees Deferred Compensation Small Capitalization Equity Fund, investments will be made in such equity investments permissible for investment under N.J.A.C. 17:16-42 and which are designated as small capitalization stocks by the Division.3. The New Jersey State Employees Deferred Compensation Cash Management Fund shall be invested in the State of New Jersey Cash Management Fund or in fixed income securities maturing in less than one year as permitted by the rules of the Council.4. The New Jersey State Employees Deferred Compensation Fixed Income Fund, the New Jersey State Employees Deferred Compensation Equity Fund and the New Jersey State Employees Deferred Compensation Small Capitalization Equity Fund may hold up to 25 percent of their assets either in short-term fixed income securities, as permitted by the rules and regulations of the Council, or in the State of New Jersey Cash Management Fund.(c) Moneys in the Outside Funds shall be invested as follows: 1. Outside Funds may be organized as mutual funds registered with the Securities and Exchange Commission (SEC), SEC-registered separate accounts of an insurance company licensed to transact business in the State, commingled trust accounts of a trust bank authorized to transact business in the State, or any other legal structure deemed acceptable to the Director. Outside Funds may also be organized as one of the above types of funds or accounts, combined with a synthetic guaranteed investment contract issued by an insurance company licensed to transact business in the State (such funds or accounts and investment contracts collectively referred to as "stable value funds").2. The DCP shall offer a minimum of five Outside Funds for investment to participants. Such Outside Funds shall be selected by the Director in consultation with the DCP Board. The Outside Funds shall offer participants a range of investment options with varying levels of risk and expected returns, and may include funds which invest primarily in domestic equity securities, international equity securities, domestic fixed income securities, and money market instruments.(d) The DCP Board, in consultation with the Director, will determine which DCP Funds shall accept ongoing deposits or transfers from participants as of a specified effective date.(e) To the extent that a DCP Fund is closed to ongoing deposits or transfers, the DCP Board, in consultation with the Director, will determine whether its participants may maintain any balances in that fund, or whether balances must be transferred to other DCP Funds.(f) The Director shall prepare a report to the Council at least one time per year which shall include: 1. A description of the DCP Funds available for investment; and2. A summary of any DCP Fund which was added or discontinued as an investment option for participants since the date of the last report and the rationale for adding or deleting such DCP Fund.N.J. Admin. Code § 17:16-65.2
Recodified by R.1991 d.274, effective 6/3/1991.
See: 23 N.J.R. 983(a), 23 N.J.R. 1800(b).
Citations corrected.
Amended by R.1998 d.32, effective 1/5/1998.
See: 29 N.J.R. 4410(c), 30 N.J.R. 106(d).
In (a), in the second sentence, added the New Jersey State Employees Deferred Compensation Small Capitalization Equity Fund, and inserted the third sentence; in (b), added the New Jersey State Employees Deferred Compensation Small Capitalization Equity Fund; and added (e).
Amended by R.2001 d.119, effective 4/2/2001.
See: 33 N.J.R. 372(b), 33 N.J.R. 1115(a).
Substituted "market" for "book" throughout section; in (e), substituted "10" for "five".
Amended by R.2005 d.347, effective 10/17/2005.
See: 37 N.J.R. 2150(a), 37 N.J.R. 4032(a).
Rewrote (a)-(c); deleted (d) and (e).
Amended by R.2006 d.79, effective 2/21/2006.
See: 37 N.J.R. 4193(a), 38 N.J.R. 1226(a).
Added (b)6; in (c)2, deleted "SEC-registered" and added the last sentence.
Recodified from N.J.A.C. 17:16-65.4 and amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Rewrote the section. Former N.J.A.C. 17:16-65.2, Participation in the New Jersey State Employees Deferred Compensation Plan, partially combined with current N.J.A.C. 17:16-65.1.
Amended by R.2012 d.194, effective 12/3/2012.
See: 44 N.J.R. 1966(a), 44 N.J.R. 2999(b).
Rewrote the section.
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
In (b)2, substituted "equity investments" for "common stocks and issues convertible into common stock" and "such equity investments permissible for investment" for "common stocks and issues convertible into common stock, which are eligible"; and in (b)3, deleted "such other" preceding "fixed".