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Bailey McCann, Opalesque New York:

The New Jersey General Assembly has passed a new measure designed to tighten the rules around pension investments. The bill would expand restrictions on investment of state pension funds with money managers who also donate to national political committees.

The new rules have their roots in a ruling handed down in January that said that current Massachusetts Governor Charlie Baker didn’t violate pay-to-play rules when he made a donation to the national Republican committee. Baker made the $10,000 contribution before he was Governor, but while he was a Partner at General Catalyst Partners, a venture capital firm that is part of the New Jersey pension portfolio.

Baker was cleared as his involvement at General Catalyst was with a vehicle that the state is not invested in. Baker also lived outside of New Jersey. Existing rules prohibit the award of mandates to firms who have donated to New Jersey campaigns in the preceding two years.

The new rules aim to make these kinds overlaps even more difficult. Under the bill, the state Treasury Department would also have to regularly publish reports disclosing fees paid to private fund managers who invest state pension funds. The SEC for its part has also been looking into those fees, some have already been deemed to be excessi......................

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