New Jersey § 5:9-22

§ 5:9-22.

a. In order to receive the lottery contribution on behalf of the retirement systems,

a Common Pension Fund L is hereby established within the Division of Investment in

the Department of the Treasury. Common Pension Fund L shall constitute part of each retirement system and the participating

trust through which each retirement system is funded. Only the retirement systems and the trusts through which they are funded shall have

an interest in Common Pension Fund L. Common Pension Fund L shall satisfy the requirements of section 401(a)(24) of the federal Internal Revenue Code of 1986 ( 26 U.S.C. s.401(a)(24) ), as amended, in accordance with Revenue Ruling 81-100 , as amended by Revenue Ruling 2004-67 and Revenue Ruling 2011-1 , and the requirements for exemption under section 501(a) of the federal Internal Revenue Code of 1986 ( 26 U.S.C. s.501(a) ), as amended. Consistent with section 401(a)(24) of the federal Internal Revenue Code of 1986 ( 26 U.S.C. s.401(a)(24) ), as amended, regulations of the United States Department of the Treasury, and other

guidance of the federal Internal Revenue Service, each retirement system shall participate

in Common Pension Fund L. No part of the corpus or income of Common Pension Fund L that equitably belongs to

a retirement system or a trust of the retirement system may be used for or diverted

to any purpose other than for the exclusive benefit of the members or beneficiaries

entitled to benefits under such retirement system or trust of the retirement system. No retirement system or trust of a retirement system may assign any part of its

equity or interest in Common Pension Fund L. b. Upon receipt of the lottery contribution, the Director of the Division of Investment

shall: (1) invest and manage all assets in the investment account; (2) make distributions of proceeds and investment earnings thereon from the investment

account into investment vehicles managed by the Division of Investment for the sole

benefit of the retirement systems; and (3) make distributions of proceeds and investment earnings thereon from the investment

account to the retirement systems from Common Pension Fund L to be used by each retirement

system for any legitimate purpose of such retirement system, provided that any distribution

under this part (3) shall be made on a simultaneous and pro rata basis to the retirement

systems, which pro rata basis shall be based on each retirement system's relative

equitable interest in the lottery contribution. c. Upon the establishment of Common Pension Fund L, there shall be established two

subaccounts therein as the operations account and investment account for the following

purposes. (1) The gross proceeds of the Lottery Enterprise shall be deposited into an operations

account. The Division of the State Lottery solely shall manage the operations account and

shall make deposits therein, invest amounts therein, make requisition and payment

for costs incurred in the operation and administration of the Lottery Enterprise,

including reimbursements of funds used to pay such expenses, and payment for lottery

sales agent commissions, certain prizes paid by lottery sales agents, costs resulting

from any contract or contracts entered into for promotional, advertising, or operational

services, or for the purchase or lease of lottery equipment and materials for the

Lottery Enterprise therefrom, hold reserves for payment of prizes and other purposes

related to the operation of the Lottery Enterprise, and otherwise manage the operations

account. All proceeds of the Lottery Enterprise deposited in the operations account shall

be qualified plan assets subject to the requirements of sections 401(a) and 501(a) of the federal Internal Revenue Code of 1986 (26 U.S.C. ss.401(a) and 501(a)), as amended, but shall not be assets managed by

the Division of Investment for the benefit of the retirement systems under N.J.S.18A:66-61 , section 14 of P.L.1944, c. 255 ( C.43:16A-14 ), or section 32 of P.L.1954, c. 84 ( C.43:15A-32 ) until any such assets have been transferred from the operations account to the investment

account. (2) Proceeds in amounts determined by the Division of the State Lottery shall be transferred

from the operations account to the investment account on a periodic basis and such

proceeds shall constitute the net proceeds of the Lottery Enterprise. Such proceeds transferred together with all investments thereof and investment earnings

thereon shall be available solely to and for the benefit of the retirement systems

in the allocable percentages specified in section 5 of this act, P.L.2017, c. 98 ( C.5:9-22.9 ). The investment account shall be managed and invested by the Director of the Division

of Investment pursuant to the authority, responsibilities, and duties set forth in

P.L.1950, c. 271 ( C.52:18A-79 et seq. ), subject to the oversight of the State Investment Council, pursuant to the authority

of P.L.1950, c. 270 ( C.52:18A-79 et seq. ). The Director of the Division of Investment shall have full discretion to distribute

proceeds and all investments thereof and investment earnings thereon from the investment

account into investment vehicles managed by the Division of Investment on behalf of

the retirement systems. The investment account may be further subdivided into subaccounts in the discretion

of the Director of the Division of Investment for purposes of investing in different

types of investments. (3) Notwithstanding any provision of this act or any other provision of law to the

contrary, the Director of the Division of Investment and the State Investment Council

shall not have any responsibility for the operations account of Common Pension Fund

L and shall not be liable for any claims, demands, suits, actions, damages, judgments,

costs, charges, or expenses, including court costs or attorneys' fees in any way related

to such account. Notwithstanding the establishment of Common Pension Fund L in the Division of Investment,

the Director of the Division of Investment, the Division of Investment, and the State

Investment Council shall not have any authority to manage the Lottery Enterprise or

the operations account. d. The portion of the lottery contribution allocated to each retirement system shall

increase the funded ratio with respect to eligible members of such retirement system,

provided, however, all amounts in the investment account, to the extent of the interest

of each retirement system therein, may be distributed by the Director of the Division

of Investment to the retirement systems from Common Pension Fund L and used by each

retirement system for any legitimate purpose of such retirement system, provided that

any such distribution shall be made on a simultaneous and pro rata basis to the retirement

systems, which pro rata basis shall be based on each retirement system's relative

equitable interest in the lottery contribution. For the purpose of this subsection, the funded ratio shall be the ratio of the actuarial

value of assets plus the value of the special asset, determined in accordance with

section 38 of P.L.2010, c. 1 ( C.43:3C-14 ), to the actuarially determined accrued liabilities expressed as a percentage.