N.J. Admin. Code § 17:4A-12.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:4A-12.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest and reinvest the PFRSNJ-managed fund assets in certificates of deposit, provided that:

1. The investment in the certificate of deposit is limited to a term of one year or less;

2. The certificate of deposit is in an amount of at least $ 1 million;

3. If headquartered in the United States or if a United States subsidiary or branch of a foreign bank, the issuer (or any parent bank or trust company, whose full faith and credit is pledged to the issue) is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation; and

4. If headquartered outside of the United States, the issuer (or any parent bank or trust company, whose full faith and credit is pledged to the issue) is headquartered in a country that has agreed to adhere to the international capital standards as stipulated in the Basel Accord.

(b) The issuer (or any parent bank or trust company, whose full faith and credit is pledged to the issue) has a credit rating of at least: P-1 or higher by Moody's Investors Service, Inc., A-1 or higher by Standard & Poor's Corporation, and F-1 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 rating fails to meet the minimum rating criteria, the certificate of deposit does not have to be sold.

(c) Notwithstanding the restrictions in this subchapter, the Board may authorize the purchase of certificates of deposit 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-12.1

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

Recodified from 17:4A-12.2 by 56 N.J.R. 795(a) effective 5/6/2024