OLYMPIA, Wash. (Legal Newsline) – Washington Attorney General Rob McKenna announced on Tuesday that his office, in collaboration with Washington State Treasurer James L. McIntire and the Washington State Investment Board, reached an $11 million settlement with a bank that will return money to the state’s pension funds.
State Street Bank was allegedly involved in a contract dispute over the pricing of foreign exchange transactions executed over a 10-year period beginning in 1997 while it served as the custody bank for the WSIB.
“This settlement brings additional, much-needed revenue to our state pension system,” McKenna said. “The Washington State Investment Board, Treasurer McIntire and the assistant attorneys general who negotiated this settlement should be commended for their commitment to our state’s retirees.”
The money from the settlement will be added to the state’s $53 billion Commingled Trust Fund that is managed by the WSIB. This fund covers most of the pension fund savings and investment earnings that are used to fund the obligation that state has for future benefit payments for the beneficiaries of several different retirement plans. Those include plans for Washington’s law enforcement officers, firefighters, public employees, teachers, school employees and judges.
“The Investment Board has a fiduciary responsibility to make sure that every dollar in the CTF and other public trust funds that we manage are accounted for and protected,” McIntire said. “In negotiating this settlement on behalf of the beneficiaries, the Board has met this high standard of responsibility.”