(PressMediaWire) WASHINGTON March 13, 2008 — Hewitt Associates LLC and the
Enron Creditors Recovery Corp. have agreed to restore $11.2 million to
the court-supervised settlement fund for Enron participants, the U.S.
Department of Labor announced today. The settlement resolves a contempt
motion filed by the secretary of labor against Hewitt for having
misallocated court-supervised settlement funds owed to Enron employees.
"This settlement will ensure that all pension plan participants will
receive all the funds to which they are entitled," said U.S. Secretary
of Labor Elaine L. Chao.
Hewitt, which served as the administrator for the settlement fund,
caused it to have insufficient cash to pay Enron workers, retirees and
beneficiaries all the amounts due them. The fund holds recoveries
obtained by the Labor Department and class action plaintiffs in related
lawsuits regarding Enron's pension plans.
The settlement will restore the funds necessary to permit full payment
to the plan participants in accordance with the allocation formula
originally approved by the court. Without the settlement, the fund
would have had less than it needed to pay all of the participants their
promised recoveries. 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.
# # #
Chao v. Hewitt Associates
Civil Action Number H-03-CV-2257
SOURCE: U.S DOL
