Virginia Retirement System investment officials will collect bonuses ranging from $5,600 to $87,000 for the fiscal year ended June 30, thanks to a stellar investment performance at the Richmond-based system, said Nancy Everett, deputy CIO. The bonuses will be paid out in September to 20 eligible staff members. Last year, the system's 17 investment staff members collected bonuses ranging from $4,500 to $45,000, for a total of $316,123, she said.
Pennsylvania State Treasurer Barbara Hafer chose Mellon Bank to replace State Street Bank as provider of custodial services that include custody of $64 billion in assets from three major Pennsylvania state pension funds.
Last May, Pensylvania Commonwealth Court rejected State Street Bank's attempt to force Ms. Hafer to adhere to contract extensions awarded to State Street by then-Treasurer Catherine Baker Knoll, who awarded the extensions two months before she left office.
In a press release, Ms. Hafer said the state's new contract with Mellon will cost the state an estimated $3 million a year less. Ms. Hafer said Mellon will provide securities custody for $1 million a year less than what State Street was charging. She also said that, under Mellon's securities lending proposal, Pennsylvania should gain at least $2 million a year more in lending revenue.
``While we are proud of the work our people did for the Commonwealth of Pennsylvania this outcome was expected and we will work cooperatively with all parties to insure a smooth transition,'' said Kari Murphy, a spokeswoman for State Street Bank and Trust Co.