Mass. Treasurer Looks To Recover $20M For Pension Fund

The Massachusetts treasurer is accusing a big financial services company of overcharging the state to manage the state's pension fund.

Treasurer Steve Grossman says he'll try to recover more than $20 million in charges by The Bank of New York Mellon. Grossman accuses the bank of charging the state foreign-currency exchange fees that were far higher than industry standard.

"We are not going to allow anyone — any bank, any entity — to profit and to profiteer on the backs of the pensioners of this commonwealth," Grossman said.

Grossman chairs the Pension Fund Board and says he was not aware what Mellon was charging the fund until he got the results of an audit.

Mellon says its rates are competitive and that it has not overcharged the state. The bank also says the report ignores substantial cost benefits it has brought to the pension fund.