Bill Text: NJ ACR96 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes temporary "Public Employee Pension Fund Investment Practices Study Commission."
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-08 - Introduced, Referred to Assembly State Government Committee [ACR96 Detail]
Download: New_Jersey-2010-ACR96-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 96
STATE OF NEW JERSEY
214th LEGISLATURE
INTRODUCED FEBRUARY 8, 2010
Sponsored by:
Assemblywoman CAROLINE CASAGRANDE
District 12 (Mercer and Monmouth)
SYNOPSIS
Establishes temporary "Public Employee Pension Fund Investment Practices Study Commission."
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution establishing the temporary "Public Employee Pension Fund Investment Practices Study Commission."
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. A temporary commission to be known as the "Public Employee Pension Fund Investment Practices Study Commission" is established in the Legislative Branch of state government to study the rules and procedures guiding the investment of moneys in the public employee retirement funds in the custody of the Director of the Division of Investment in the Department of the Treasury. It shall be the duty of the commission to review and analyze investment policies and processes, and to make recommendations to the Legislature pertaining thereto. The review and analysis shall include, but shall not be limited to, the roles and the interplay of the State Treasurer, the State Investment Council, the Division of Investment, and the State Legislature in effectuating and overseeing the investment of public employee retirement funds moneys; the composition of the State Investment Council; the performance of public employee retirement funds investments; the asset allocation plan governing the investment of public employee retirement funds; the checks, balances, and internal controls built into the investment process to safeguard the integrity of the public employee retirement funds before specific investments are placed; and whether the compensation paid to investment analysts is sufficient to attract candidates with the necessary skill sets.
2. The commission shall consist of 12 voting members, to be appointed as follows: six members of the Senate, three members of the majority party to be appointed by the President of the Senate and three members of the minority party to be appointed by the Minority Leader of the Senate; and six members of the General Assembly, three members of the majority party to be appointed by the Speaker of the General Assembly and three members of the minority party to be appointed by the Minority Leader of the General Assembly. Any vacancy in the membership of the commission shall be filled in the same manner provided for the original appointments.
The commission shall be entitled to and avail itself of the assistance of the Office of Legislative Services as it may require and as may be available to it for its purposes.
3. Members of the commission shall be appointed within 30 days after the effective date of this act, P.L. , c. (pending before the Legislature as this bill), and shall hold their initial organizational meeting as soon as practicable, but no later than 30 days following the appointment of its members, and shall select a chairperson and vice-chairperson, who shall be of different political parties. The chairperson shall appoint a secretary who need not be a member of the commission.
4. The commission may meet and hold hearings at the places it designates throughout the State during the sessions or recesses of the Legislature. The commission shall meet at the call of the chairperson. A meeting of the commission shall be called upon the request of seven of the commission's members, and the presence of seven members of the commission shall constitute a quorum at any meeting thereof.
5. Within 45 days from the date of its organization, the commission shall report its findings, along with any recommendations and legislative proposals it may make, to the Governor, and the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The commission shall expire upon issuance of its final report.
6. This concurrent resolution shall take effect immediately and shall expire upon the commission's issuance of its report.
STATEMENT
This concurrent resolution establishes in the Legislative Branch of State government the temporary "Public Employee Pension Fund Investment Practices Study Commission" to study the rules and procedures guiding the investment of moneys in the public employee retirement funds. The commission has 12 members: six from the Senate in equal number from both parties and six from the General Assembly also in equal number from both parties.
The commission will issue a report with its findings and recommendations within 45 days from the date of its organization and will expire upon the report's issuance.
The turmoil in world financial markets in the second half of 2008 produced monumental losses to the public employee pension funds. On November 28, 2008, their total value was $60.6 billion, which was over 22 percent less than on July 1, 2008. While this plunge reflects overall market trends and is not attributable to improprieties or incompetency, it is prudent in light of the staggering losses to now review and analyze the policies, rules, and procedures for the investment of pension fund assets so as to best ensure the funds' integrity in the future.
