The Investment Decisionmaking Process in Two New Jersey Public Employee Retirement Plans

Case studies of the Public Employees Retirement System of New Jersey and the Board of Education Employees Pension Fund of Essex County, New Jersey, are provided as part of a study of governmental retirement plans. The Public Employees Retirement System has the largest membership of the six pension plans for which investments are administered by the State. It covers 171,518 active members and 21,682 pensioners. As of June 1975, this plan had $1.1 billion in investments. Its operation consists of two functions: administration of the plan and investment of plan assets. Actual administration of the plan is carried out by the Division of Pensions, and investment functions are the responsibility of the Division of Investments; both divisions are part of the Department of the Treasury. The Board of Education Employees Pension Fund of Essex County is one of 38 contributory plans serving public employees in New Jersey. It has 5,532 active and 518 retired members, and its assets total $36 million. This plan covers the noninstructional employees of 21 Essex County school districts. An executive secretary administers the plan and a local bank manages its investments.