PFRSNJ Brings Disability Processing In-House and Advances Fund Operations

At the August monthly meeting, the PFRSNJ Board received updates from the management team, notably on the August 1st transfer of disability application processing from the Division of Pensions over to the PFRSNJ. 

This is a major improvement for our members and will ensure that all stages of the disability retirement process are handled in-house. Previously, much of the application processing was done under a services agreement with the Division of Pensions, and once applications were deemed ready for the Board’s review, they were sent over to the PFRSNJ Board Operations Unit. As of August 1st, all processing will be done by PFRSNJ staff. Members seeking disability benefits often wait months for their applications to work through the process, which includes independent medical exams, reviews of records and reports, and other matters. The in-house processing should help cut down on the time and improve service outcomes for our members. The Board also approved an organizational change to restructure some of the financial and compliance functions under the office of the Chief Financial Officer.

This follows the recent promotion of Ainsley Reynolds to the CFO role, and combines the investment accounting, operations, and compliance roles within the office. The CFO also updated the Board on the FY26 audit process, which is moving forward on pace with expectations.

Investment Update:

The Chief Investment Officer reported on preliminary fund performance for the period ending July 31st, with the fund returning -.29 percent on the month, and a return of 12.64% for the previous 12 months. Excluding the HMFA (Mortgage Program Portfolio) and legacy DOI investments, the trailing 12-month was 15.66%. This return is representative of the assets which the Board has actual control over. As of the end of the month, plan assets were $39.182 billion dollars. The Investment Committee referred several investment recommendations to the Board. First, the Board approved a commitment to the Pollen Street Capital Hanover Square private credit fund, which will be investing in European asset-backed credit investments as part of the alternative investment program.

The Fund will be investing in this vehicle as part of a founder’s share class, which provides substantial discounts to the normal management fees. Additionally, the Board approved two resolutions which will award Acadian Asset Management and Wellington Management Company with mandates to manage assets allocated to emerging markets. This follows a multi-month procurement process and expands the fund’s use of active strategies in areas where net-of-fee outperformance can be reasonably attained across most market cycles