Hewitt pays up

Mar 14, 2008 @ 11:46 am

By Aaron Siegel

Hewitt Associates has estored more than $11.2 million to the settlement fund for former Enron Corp. employees who lost their retirement savings in the company’s 2001 collapse, the Department of Labor said Thursday.

The settlement resolves a contempt motion filed by Elaine Chao, secretary of labor, in February against Hewitt Associates LLC, a Lincolnshire, Ill.-based human resources firm that was hired by the Enron Creditors Recovery Corp. to allocate settlement funds owed to Enron employees.

However, more than 20,000 workers were overpaid or underpaid nearly $22 million because of a software glitch blamed on Hewitt.

The fund holds money obtained by the Labor Department and class action plaintiffs from lawsuits regarding Enron’s pension plans.

In 2006, former Enron workers received about $89 million, the first payment in a lawsuit settlement over money the workers lost through Enron’s employee stock ownership and 401(k) plans, according to the Associated Press.

“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, according to a statement.

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