Benefits of SC settlement with NY bank questioned
By SEANNA ADCOXAssociated Press
COLUMBIA, S.C. (AP) - Critics say the $25 million settlement Treasurer Curtis Loftis signed with Bank of New York Mellon Corp. is a bad deal for South Carolina's retirees.
Loftis says the deal's value actually tops $100 million when including potential savings over the 10-year contract that the settlement awards the bank. Loftis has not provided a breakdown. Critics contend the savings don't exist.
Under the settlement, the bank credited $25 million to the state's investment accounts, including $20 million to the state's pension portfolio.
The treasurer's office sued the bank in January 2011, accusing it of losing $200 million in retirees' money through bad investments. State retirees question why the state would reward such behavior with a 10-year deal.
The investment commission says any savings are far outweighed by new upfront fees.Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.