US - Enron is to plunge US$134m into its company retirements plans, taking the total paid in to over $220m.
The majority of the latest sum ($124.6m) came from proceeds of selling the Enron bankruptcy claim to Bear Stearns Investment products, with the $9.33m paid separately by Enron earlier this month as a distribution for part of the bankruptcy claim.
US Secretary of Labor Elaine Chao yesterday said Enron’s collapse had devastated thousands of employees and retirees whose long-term savings and retirement security were tied up in the company.
“This agreement secures $134m in cash which will be distributed to workers and retirees through their retirement plans,” said Chao. “The Department [of Labor] will not rest until we have done everything we can to help employees and retirees recover what they are owed.”
The sale of the bankruptcy claim has increased cash available for distribution to participants in Enron’s retirement plans. The DoL previously announced an $86.85m settlement with Enron officers and fiduciaries who served on the plans' administrative committee.
Subject to resolution of the appeals, the sale of the bankruptcy claim increases the total amount paid in this case for the Enron retirement plans to more than $220.8m.
On 26 June, 2003, the DoL sued Enron, its board of directors, Kenneth L. Lay, Jeffrey K. Skilling, the Enron officers and the plans’ administrative committees for mismanagement of the plans, in violation of the Employee Retirement Income Security Act.
By Damian Clarkson
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
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The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.