N.J. Admin. Code § 17:16-83.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:16-83.4 - Limitations

(a) At the time of entering into a swap transaction:

1. The notional value of net exposure to any one counterparty shall not exceed one percent of the combined value of all of the Pension and Annuity Funds; and

2. The total notional value of all swap transactions shall not exceed five percent of the combined assets of all of the Pension and Annuity Funds, except that this limit may be increased to an amount not to exceed 10 percent by the Director for a fixed period of time after consultation with the Investment Policy Committee of the Council.

(b) If, subsequent to entering into a swap transaction, 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 net exposure below the maximum levels, except that the period of grace may be extended for additional four-month periods with the approval of the Council.

N.J. Admin. Code § 17:16-83.4