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.