Labor Opens ERISA Investigation of Enron

Archived News Release — Caution: Information may be out of date.

WASHINGTON — U.S. Secretary of Labor Elaine L. Chao confirmed today that the U.S. Department of Labor has opened an investigation into questions raised by Enron’s handling of its workers’ retirement benefit plans. Secretary Chao also announced that the Department has teamed up with the Texas Workforce Commission to help workers who are being laid off in the wake of Enron’s bankruptcy.

“Enron’s employees have gotten the short end of the stick in the sudden collapse of this company, and we are committed to doing everything we can to help them,” Chao said.

Last week, Enron filed for Chapter 11 bankruptcy and then announced plans to lay off 4,000 employees and put another 3,500 on temporary leave. In response to these sudden layoffs, the U.S. Department of Labor and the Texas Workforce Commission have set up rapid response teams to provide orientation sessions for the affected workers, informing them how to sign up for unemployment insurance benefits and receive free job training and other services.

The U.S. Department of Labor has also activated its toll-free hotline, 1-877-US2-JOBS, to take calls from laid-off Enron employees and direct them to nearby One-Stop reemployment centers. Enron employees with questions about their employee benefit plans can also call the Department’s Pension and Welfare Benefit Administration’s Dallas office at 214-767-6831.

Many Enron employees lost 70-90% of their retirement assets after the company indicated that it would re-state profit reports. The Labor Department’s Pension and Welfare Benefits Administration is reviewing Enron’s benefits plans, the rules that govern them, and steps that were taken by the company shortly before its collapse to temporarily freeze trading of 401(k) plan assets. This action is being closely coordinated with other government agencies investigating Enron.

Archived News Release — Caution: Information may be out of date.