Top NJ Lawmaker Wants Pension System to Fund Roads

New Jersey Senate President Steve Sweeney has sponsored a bill, currently sitting in the state legislature with some bipartisan support, that would allow the state’s pension funds to buy bonds from New Jersey Transportation Trust Fund.

The bill would also eliminate a regulation that prohibits the pension funds from buying more than 10 percent of any bond offering.

From F-A Mag:

Senate President Steve Sweeney, sponsor of the bill that has bipartisan support, says the creative approach is a win-win situation that gets double duty out of the state’s money.

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Transportation Trust Fund bonds guarantee a 5 percent return, therefore allowing the pension fund to buy the bonds at no risk to the pension fund, Sweeney says.

The bill also lifts the cap that prohibits the pension fund from buying more than 10 percent of any bond offering.

“Some legislators wanted to put a new cap of 20 percent on the pension fund, but the state Investment Council should be allowed to make the decision on how much the pension fund can invest in Transportation Trust Fund bonds,” Sweeney says.

“This would offer an investment strategy that is mutually beneficial for New Jersey’s underfunded pension system and the Transportation Trust Fund,” Sweeney says.