On May 8, Governor Murphy signed into law S-2423/A-3746, which permits local government deferred compensation plans to invest in collective investment trusts. The League supported this legislation that adds collective investments to the types of investments municipalities, county or local authority deferred compensations plans are statutory allowed to make.
A collective investment trust is a trust administered by a bank or trust company that combines assets for multiple investors. Its trustees are considered fiduciaries under the Employees Retirement Income Security Act (ERISA). Collective investment trusts are regulated by the Office of the Comptroller of the Currency and subject to oversight by the Internal Revenue Service. In contrast, mutual funds are regulated by the Securities and Exchange Commission.
P.L. 2023, c. 43 took effect immediately.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, firstname.lastname@example.org, 609-695-3481, x112.