New Jersey Bill Gives Police, Firefighters Control Over Pension Plan

The New Jersey state legislature has passed a bill that would allow police and firefighters to manage their own pension plan, transferring control from the state.

The proposed legislation, which now goes to Gov. Chris Christie, would transfer management of the Police and Firemen’s 24 Retirement System from the state’s department of the treasury to the plan’s board of trustees.

The employee representatives to the board will be made up of three active policemen and three active firemen. Of those six members, one policeman and one fireman will be active members of the retirement system and elected by the active members of the system. Among the remaining active policemen and firemen, one policeman will be appointed by the president of the New Jersey State Policemen’s Benevolent Association, and another will be chosen by the president of the New Jersey State Fraternal Order of Police. One fireman will be named by the president of the New Jersey State Firemen’s Mutual Benevolent Association; and the other will be appointed by the president of the Professional Firefighters Association of New Jersey.

In addition, the board will contain one retiree from the system elected by the system’s retirees.

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Among the employer representatives to the board, the governor will appoint four trustees, who either hold, or have held, an elective public office as a mayor, member of a municipal council, or member of a board of chosen freeholders, or is employed, or has been employed, by a municipal or county government as an administrator, manager, or chief financial officer to represent the interests of local government employers.

The governor will also appoint one trustee who holds, or has held, a management or supervisory position in the executive branch of state government at the level of division director or above to represent the interests of the state government.

According to the bill, the board of trustees would have all the functions, powers, and duties for investment or reinvestment of money, and the purchase, sale or exchange of any investments or securities under the control and management of the board. The division of investment in the New Jersey Department of the Treasury currently performs those functions and duties.

The board of trustees would also have the authority to establish a process for the review, approval, and appeal of applications for retirement, and modify the system’s member contribution rate. It can also set a cap on creditable compensation, create a formula for calculation of final compensation; and establish an age at which a member may be eligible for the benefits for service or special retirement. It also allows the board to reinstate cost-of-living adjustments for retirees.

Additionally, the bill requires the board of trustees, at the end of six years following the bill’s enactment, to conduct a review of the performance and funding levels of the retirement system.

By Michael Katz

Our March 31 deadline to recognize the brightest young minds in the industry is fast approaching. CIO is accepting recommendations for our annual Forty Under Forty list. In previous years, we’ve gathered more than 300 nominations, with the forty individuals who make the cut each year representing the industry’s brightest young talent.

We want to know who you think should make this year’s list. Email your nominations here before Feb. 20 to be considered.

A few rules:

They have to be asset owners (not managers, or outsourced-CIOs, or multi-family offices)
They have to be under 40 as of April 30, 2017.
They need to be a new potential winner and cannot have been on the list before. Check the 2016, 2015, 2014, 2013, and 2012 editions of the list to see who has already appeared on the Forty Under Forty (and is thus ineligible in 2017).

Give us as much information as you can, including nominees’ contact details and what makes them impressive. We’d love to know why you think they’d make great candidates, and any of their worthy accomplishments thus far in their careers.

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Let’s make this inspirational. We’re seeking to shine a spotlight on the rising stars among the next generation and those worth watching. Let’s face it, younger people with ambition, idealism, insight and ability give us good feelings about the future.

In the past, we spotlighted rising all stars such as Jagdeep Bachher, who became the CIO of the University of California Board of Regents within a few short years, and Mark Baumgartner, who went on to take the helm as CIO of Institute for Advanced Study.

So email me your nominations, or use our online form. You will remain anonymous to all but me and my editorial team.