Independent Expert Takes Charge of Enron Pension Plans; Enron Officials Removed Secretary Chao Says Action Is Victory For Enron Workers

Archived News Release — Caution: Information may be out of date.

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.

Archived News Release — Caution: Information may be out of date.