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Tuesday, July 22, 2014         

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Hawaii Employee Retirement System chooses BNY Mellon

By Erika Engle

POSTED:



The Employees' Retirement System of the State of Hawaii has named BNY Mellon the global custodian for its more than $12.3 billion in pension fund assets.

In addition to what's called global custody, the New York-based firm also will provide securities lending, foreign exchange, cash management, and a wide range of global risk solutions services to ERS, BNY announced this morning.

For years, there has been a perception that ERS would not be able to meet their obligations to beneficiaries due to an $8.4 billion shortfall, but in February, Vijoy Paul Chattergy, the new chief investment officer, assured retirees the obligations would be met.

This morning's announcement expands BNY Mellon's involvement with ERS, according to Wesley Machida ERS executive director.

"BNY Mellon is a market leader whose team can help us implement best practices that enable us to be more efficient," he said. "This appointment extends our existing relationship with BNY Mellon's investment management and corporate trust businesses. As global custodian, we'll get a partner with a robust set of products we can leverage both now, such as securities lending, and in the future."

ERS provides retirement, disability, survivor and other benefits to more than 113,000 members that worked for the state of Hawaii or the counties.

BNY Mellon will provide global custody, securities lending, foreign exchange, cash management, and a wide range of global risk solutions services to ERS.







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AhiPoke wrote:
Somehow the numbers don't seem to add up to me. IF the ERS has $12.3B and there are 113k beneficiaries, that works our to around $109k/retiree. $109k doesn't sound even near enough to pay a pension that may last 10-20 years. Even adding the $8.4B stated shortfall wouldn't seem enough. Either I'm missing a significant calculation, the article is flawed or incomplete or these pensions require a significant amount of future contributions to make up the difference.
on October 10,2013 | 08:02AM
eunice1 wrote:
The ERS is a joke. Its so underfunded and the numbers they use to calculate figures is so outdated. The ERS is broke already. They based the numbers on people living to an average age of 67. Someone is going to left holding this hot potato.
on October 10,2013 | 08:39AM
what wrote:
With Obama and our government doing everything it can to keep interest rates at historic lows near ZERO percent, they will have to take extreme risks to make the 8% return necessary to get the pension fund back on track. If they did take such risks, it will blow up in their face. Thank Obama and company for keeping interest rates at ridiculously low levels that continue to depress the economy.
on October 10,2013 | 12:06PM
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