Prioritizes investment of State administered pension funds in in-state infrastructure project investments over comparable out-of-state infrastructure project investments.
If enacted, A2913 would strengthen the role of the state's Division of Investment in the Department of Treasury by mandating that when investing or reinvesting pension or annuity fund assets, the focus must be on in-state projects. This legislative change seeks to enhance local infrastructure, thereby promoting improvements within various sectors, including utilities, transportation, and education. Additionally, proponents argue that this bill can lead to more jobs and enhance the economic landscape of New Jersey.
Assembly Bill A2913 aims to prioritize the investment of State administered pension funds in in-state infrastructure projects over comparable out-of-state projects. Sponsored by Assemblyman Gary S. Schaer, this bill reflects a growing concern about the deteriorating condition of infrastructure in New Jersey and across the U.S. It emphasizes a significant shift in how state pension funds are utilized, directing them to foster local development and potentially improve job creation within New Jersey.
While there is a clear intent to bolster in-state investment, there are potential points of contention regarding the emphasis on location over investment quality. Critics of the bill may argue that prioritizing in-state investments could limit opportunities for better returns through out-of-state infrastructure projects. The bill's implementation would necessitate a careful balance between fulfilling fiduciary duties and promoting local economic interests. The discussion around this bill may delve into the nuances of state investment strategies and their implications for pension fund beneficiaries.