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
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.