SEC Chairman Arthur C. Levitt March 30 said the commission will issue a proposal in April or May to eliminate "pay to play at public pension funds. The proposal would make it illegal for money mangers that do business with public funds to give campaign contributions to elected officials who are fiduciaries of those funds. The managers would not be able to do business with those pension funds for a two-year period, similar to the rule already in effect for municipal bond funds. Speaking at the spring meeting of the Council of Institutional Investors in Washington, Mr. Levitt said "pay to play has tainted the management of public funds. He referenced his late father, who as controller of the State of New York resisted political pressure to invest state pension funds in New York City, when the city was in danger of going bankrupt in the early 1970s.