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OPA News Release: [04/19/2002]
Contact Name: Sue
Hensley
Phone Number: (202) 693-4676
Independent Expert Takes Charge of Enron Pension Plans; Enron Officials
Removed Secretary Chao Says Action Is Victory For Enron Workers
WASHINGTON— Secretary of Labor Elaine L. Chao today
announced that the Bankruptcy Court for the Southern District of New York
approved the appointment of Boston-based State Street Bank and Trust Company as
the independent fiduciary for the Enron Corp. Savings Plan, the Enron Corp.
Employee Stock Ownership Plan and the Enron Corp. Cash Balance employee
benefits plans. The “Administrative Committees” of Enron officials
formerly responsible for the plans have been removed.
State Street takes over Enron’s pension plans as the result of an
agreement with the U. S. Department of Labor and the Enron Corporation.
“Today’s court action is a victory for Enron workers,”
said Secretary of Labor Elaine L. Chao. “We’ve worked long and hard
to remove the former Enron trustees and replace them with independent
leadership which will aggressively protect Enron employees and retirees and the
assets of their retirement plans.”
As the fiduciary, State Street immediately assumes control over
operating the plans in the sole interest of employees and retirees. State
Street will be responsible for selecting and monitoring plan investment
managers, investing plan assets held in employer securities, selecting and
overseeing funds offered as investment options under the savings plan and
procedures relating to pass-through voting of employer securities held by the
savings and employee stock ownership plans, and retaining professional
services.
Enron’s pension plans covers more than 20,000 employees and
retirees. The company filed Chapter 11 bankruptcy on Dec. 2, 2001. The
department’s Pension and Welfare Benefits Administration opened an
investigation on Nov.16, 2001 to determine whether there were violations of the
Employee Retirement Income Security Act (ERISA) with regard to operation of
Enron’s employee benefit plans.
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