OLYMPIA -- Washington’s investment fund for several public pension systems will receive $11.7 million from State Street Bank in a settlement agreement announced today by Washington State Treasurer James L. McIntire, the Washington State Investment Board (WSIB) and the Attorney General’s Office.
This negotiated resolution stems from a contract dispute over the pricing of foreign exchange transactions executed between 1997 and 2007 while State Street was the custody bank for the WSIB.
The proceeds of the settlement will go into the state’s Commingled Trust Fund (CTF) that is managed by the WSIB. This $53 billion fund represents the bulk of pension fund savings and investment earnings that are used to fund the state's obligation for future benefit payments for the beneficiaries of several different retirement plans for Washington’s public employees, teachers, law enforcement officers, firefighters, school employees, and judges.
Treasurer McIntire – a member of WSIB’s Board of Trustees – played a key role in securing State Street’s settlement agreement.
“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.”
“This settlement brings additional, much-needed revenue to our state pension system,” said Attorney General Rob McKenna. “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.”
For more information visit The Office of the State Treasurer’s website at www.tre.wa.gov.
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Chris McGann, Communications Director, Treasurer’s Office, (360) 902-9033
Janelle Guthrie, Communications Director, Attorney General's Office, (360) 586-0725 or (360) 584-3046 (cell)