More than $11 million will be restored to the settlement fund for former Enron Corp. employees who lost their retirement fund during the company's collapse, the Labor Department says.
A settlement reached Thursday ends a contempt motion filed by Labor Secretary Elaine Chao in February against Hewitt Associates LLC, an Illinois-based company that was hired by the Enron Creditors Recovery Corp. to allocate settlement monies owed to Enron employees.
In 2006, former Enron workers received about $89 million, the first payment in a lawsuit settlement over money the workers lost through Enron's employee stock ownership and 401(k) plans. But more than 20,000 workers were overpaid or underpaid nearly $22 million because of a software glitch blamed on Hewitt. Hewitt is no longer the administrator.
Enron Creditors Recovery Corp. and Hewitt have agreed to restore $11.2 million to the settlement fund, the Labor Department said.
Enron said that even after efforts to get back the money that was overpaid, the settlement fund was still $9.15 million short.
The department added that Enron and Hewitt have agreed "to provide the funds necessary to make up the shortfall in the amount needed to make whole the underpaid participants."
"This settlement will ensure that all pension plan participants will receive all the funds to which they are entitled," Chao said.
Enron, once the nation's seventh-largest company, entered bankruptcy proceedings in December 2001. The collapse wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans.
Enron founder Kenneth Lay and former chief executive Jeffrey Skilling were convicted last year for their roles in the company's collapse. Skilling is serving a sentence of more than 24 years. Lay's convictions for conspiracy, fraud and other charges were wiped out after he died of heart disease last year.
Source: AP News
3 comments:
That's good for the retirees of Enron, but what about all retirees who lost money in their 401K's that were not Enron employees?
Good. Now confiscate KBR to repay taxpayers and soldiers for what was stolen by them.
Ken Lay still made out with his stolen money and living great on the island. Now with all the Contractors who stole from the US Treasury I don't see alot of that money being recovered. As for our troops check out PBS and you'll see how the plan was laid out in 1999 by the Republican Party. Now as you noticed the Media doesn't report any deaths of our troops, but still we hear when necessary lip service of how we support our troops. I get to hear from soldiers serving now in Iraq and Afghanistan not the few Media reports or the White House lies.
I've read on blogs sites where Americans don't wont to hear anymore about the deaths of our troops, it's to painful. I get many emails from young officers and combat soldiers that tell the truth.
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