New Jersey State Investment Council, which oversees the state's $67.1 billion pension fund, made final changes to its pay-to-play regulations, according to Orin Kramer, council chairman. The regulations prohibit the New Jersey Division of Investment, Trenton, from hiring any investment adviser that has made a political contribution to any incumbent or candidate for state office. The restrictions also apply to the executive or management committee of an adviser's holding company and its political-action committee. Prospective money managers seeking to do business with the investment division will have to disclose any "relevant" political contributions and investment council members will have to disclose their own political contributions during their term.
Also, investment council members will be prohibited from receiving any form of gift, compensation, gratuity, service or payment in connection with the hiring or retention of any investment management firm. This restriction will extend for two years after the expiration of each council member's term, and it will also extend to the member's family.
Mr. Kramer said the regulation still must be approved by the state attorney general, after which the investment council will give its final approval and the policy will become effective; that all should be completed within the next five weeks.