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OPA News Release: [03/14/2002]
Contact Name: Sue
Hensley
Department Of Labor Announces Enron Independent Fiduciary
State
Street To Replace Enron’s Retirement Administrative Committee
WASHINGTON – The U.S. Department of Labor has announced that
State Street Bank and Trust of Boston, Mass., will act as the independent
fiduciary for Enron Corporation’s retirement plans.
Last month, the U.S. Department of Labor and Enron Corporation reached
an agreement to replace the existing administrative committee for the Enron
Corp retirement plans (the Enron Corp. Savings Plan, the Enron Corp. Employee
Stock Ownership Plan and the Enron Corp. Cash Balance Plan) with an Independent
Fiduciary. The Department of Labor has selected a team of experts from State
Street Bank and Trust to act in that capacity.
“I am pleased we have concluded this lengthy and complicated
process,” said U.S. Labor Secretary Elaine L. Chao. “The sole
criteria in this selection was to determine who could best protect the
interests of the employees and retirees. Enron employees have suffered
enough.”
As part of its agreement with the Department, Enron will pay all fees
associated with State Street’s assumption of fiduciary duties up to $1.5
million annually for a period of three years plus expenses, subject to
Bankruptcy Court approval. This agreement is particularly important because the
fees and expenses would otherwise be directly deducted from the employee
benefit plans. Under the current agreement, the Enron plans will not have to
pay for State Street’s services, preserving more assets for the current
and former employees of Enron.
Included in its duties, State Street will be responsible for, among
other things, the investment of plan assets, the selection and monitoring of
investment managers, the investment of plan assets in employer securities,
representation of the plans’ interests in litigation. This includes
representation of the plans’ interests in the Enron bankruptcy and the
selection and monitoring of funds and investment options offered under the
Savings Plan.
State Street has vast experience managing employee benefit plan assets
and acting as independent fiduciaries for numerous employee benefit plans.
Currently, State Street has $700 billion in assets under its management and
holds over $6 trillion in assets under custody for mutual funds and pension
plans.
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