The New Mexico Investment Council's announcement Friday says the council is getting $20 million and the teacher pension fund an additional $4.25 million.
The council says the settlement to be paid by Vanderbilt Capital Advisors heads off possible litigation.
That litigation would have related to allegations that individuals contributed to political committees associated with former Gov. Bill Richardson's administration to get the state's investment business.
The announcement of the settlement says the state believes its claims against Vanderbilt were well-founded and valid but that Vanderbilt contends it had legal and factual points on its side.
No criminal charges have been filed in the New Mexico scandal.