NJ S259

Prohibits New Jersey's Division of Investment from investing any state pension or annuity fund assets in hedge funds or derivative contracts, including forwards, futures, options, and swaps.

Requires the State Investment Council and Director of the Division of Investment to divest all existing holdings in hedge funds and derivative contracts within three years of enactment.

Mandates an initial report to the Legislature within one year identifying all prohibited investments, followed by annual progress reports on divestiture efforts.

Provides legal immunity to State Investment Council members and state officers for decisions to reduce or eliminate these investments.

Amends the definition of permissible "investments" under existing law (P.L.1950, c.270) to explicitly exclude hedge funds and derivative contracts from authorized investment vehicles.