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NJ Bill: No Investing Public Pension Funds in National Political Groups

Both houses of the New Jersey legislature have now approved a bill that forbids investing New Jersey public employee pension funds in firms with investment managers that make donations to national political groups.

Contracts between the New Jersey Division of Investment and firms and investment managers that made contributions to campaigns or political parties in New Jersey within the last two years already are illegal, according to The Inquirer.

The Assembly voted for A3772 on Feb. 23 in a 53-15 vote (with four abstentions); the Senate approved its identical version 25-8 in October 2014. The measure provides that the State Investment Council must report private money managers’ fee information; it also says that the council’s rules regarding political contributions would apply to federal or national committees and non-New Jersey political committees.

That, says The Record, spells an expansion of New Jersey’s conflict of interest rules already applicable to the pension system so that they also would cover donations to national political groups. And that includes the Democratic Governors Association and the Republican Governor’s Association, which New Jersey Gov. Christie (R) heads.