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17,000 Enron Pension Holders to Get Paid in Full
Nearly 17,000 Enron pension plan holders will see their benefits paid,
thanks to pressure from the federal government's Pension Benefit Guaranty
Corporation. Enron agreed to use proceeds from the $4.45 billion sale of its
pipeline business to place $321 million in an escrow account to fund the
closeout of its pension plans. No new benefits will accrue for current
employees, but retirees in four plans will receive the full amount
originally expected. Previously Enron said it would only put about $200 million in the plan,
but pension agency officials forced the issue during a bankruptcy court
hearing last week where the company was seeking approval of the pipeline
sale. Rather than see the closing of the sale delayed, Enron agreed to
fully fund the pensions. Enron will now most likely arrange with an insurance company to take
over the plans, which include the Enron Corp. Cash Balance Plan, Garden
State Paper Pension Plan, Enron Financial Services Pension Plan and San
Juan Gas Company Pension Plan. The method in which the pensioners receive their payments depends on the plans. They may receive a lump sum or over time as an annuity. Copyright
© 2002 Global Action on Aging |
