Administration April 7, 2006

Enron Looks to Delay Pension Plan Settlement Payout

July 28, 2004 (PLANSPONSOR.com) - Enron Corp. has taken steps to block retirement plan participants from getting any assets from a partial settlement.
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The company argues the $85 million recently freed up by insurers to partially settle more than $3 billion in employee retirement fund claims belongs to Enron and should not be released to plan participants.   With such a move, the company is hoping to stay any payout to Enron employees until after the Houston-based company emerges from bankruptcy, a move expected early next year, according to a Bloomberg news report.

“The proceeds of the policies are property of Enron’s Chapter 11 estate,” the filing with US Bankruptcy Judge Arthur Gonzalez in New York said.

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Enron filed the delay request followingUS District Judge Melinda Harmon’s tentative approval of the settlement in May (See  Settlements Reached in Enron Suits ).   The final hearing is scheduled for August 19.

Administration April 6, 2006

MassMutual Slapped with Subpoena after Declining O'Connell Documents Demand

June 16, 2005 (PLANSPONSOR.com) - After MassMutual Financial Group refused a state of Massachusetts request for documents about recently fired CEO Robert O'Connell's alleged misconduct, the company has now been hit with a state subpoena for the material.
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Secretary of State William Galvin sent the subpoena to MassMutual on Wednesday after company officials refused to turn over the O’Connell material, Galvin spokesman Brian McNiff told Reuters. Not only that, according to Reuters, Massachusetts Attorney General Tom Reilly is probing “serious allegations of wrongdoing” at the company while state Insurance Commissioner Julianne Bowler is also investigating.

MassMutual on June 2 said it fired O’Connell “due to certain issues, subject to his rights under his employment contract.” O’Connell said he intended to exercise those rights. According to published reports, O’Connell’s alleged misconduct included making improper transactions in an investment account, using a company jet for personal trips, and accepting a Florida condominium (See   Report: MassMutual Chief Charges Included Retirement Account Improprieties ).  

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The Springfield, Massachusetts-based company, which is owned by policyholders and not publicly traded, also said it created a five-person Office of the CEO to focus on the company’s strategic direction and operations. MassMutual created the office two weeks after it fired O’Connell.

In  a Web statement , MassMutual said its Office of the CEO will be comprised of: Stuart Reese, its new CEO; Roger Crandall, chief investment officer; Howard Gunton, chief financial officer; John Murphy, CEO of OppenheimerFunds Inc., and Matthew Winter, head of the individual insurance group.

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