|Tittle Settlement Fund Allocation Questions and Answers|
Note: The Tittle Settlement Call Center telephone number is no longer in operation; references to that telephone number in the following items should be disregarded.
The mailing addresss for the Enron Corp. Savings Plan which was P. O. Box 550648, Houston, TX 77255-0648 is no longer valid; that P. O. Box has been closed and mail sent to that P. O. Box will be returned to the sender as undeliverable mail.
General Settlement Information
What are the settlements?
This communication is regarding the Pamela M. Tittle, et al. v. Enron Corp., et al. class action lawsuit (the "Tittle Action"). For more information, please check the following website: http://hagens-berman.com/enron_lawsuit. The Tittle Action is a class action lawsuit brought on behalf of former and current Enron employees against: 1) Enron Corp. (the "Company"), 2) The Northern Trust Company, 3) Arthur Andersen Worldwide Societe Cooperative, 4) a number of Enron's officers and employees (including Ken Lay and Jeff Skilling), 5) Arthur Andersen LLP, and through the Department of Labor (the "DOL"), Consent Decrees with settlements related to several former Enron employees and outside directors. The Tittle Action alleged, among other things, certain breaches of fiduciary duty with respect to the Enron Corp. Savings Plan (the "Savings Plan"), the Enron Corp. Employee Stock Ownership Plan (the "ESOP"), and the Enron Corp. Cash Balance Plan (the "Cash Balance Plan"), including claims regarding the continued availability of Enron Corp. stock as an investment under the Savings Plan and ESOP.
Elaine L. Chao v. Enron Corp., et al. (the "DOL Action") is a lawsuit filed by the DOL that alleged, among other things, certain breaches of fiduciary duty with respect to the Savings Plan and ESOP. The DOL Action does not involve the Cash Balance Plan. For more about the DOL Action, please refer to the following website: http://www.dol.gov/_sec/media/announcements/enron.htm.
Both the Tittle Action and the DOL Action were consolidated in the U.S. District Court for the Southern District of Texas, Houston Division (the "District Court"), before Judge Melinda Harmon and a number of settlements were reached. Those settlements are referred to herein as the "Tittle Settlements."
What are the settlement funds, relevant Class Periods and Gross Settlement Funds?
Settlement funds, relevant Class Periods, and Gross Settlement Fund amounts are as follows:
The Tittle Action resulted in six different settlements (including two allocations for the Company Settlement ("Fund I" and "Fund 1-S")), with five different Class Periods (collectively, the "Tittle Settlements"). Please note that you may not be a claimant in all of these settlement funds because of the timing differences in the Class Periods. Gross Settlement Funds are reduced for approved legal fees and expenses. Also, a portion of the Company Settlement, the Administrative Committee Settlement, and the Arthur Andersen LLP Settlement will be allocated to Cash Balance Plan claimants.
If the Company Settlement was settled for $356.25 million dollars, why was the claim sold to Bear Stearns for $133.9 million?
In a bankruptcy, any settlement amount to be paid by a debtor is paid based on the amount of creditor recovery. The recovery rate on this claim is estimated to be 17.4%, although the recovery rate may be higher or lower. As the determination of such recovery can take years and the ultimate amount claimants will be paid by the bankruptcy estate is uncertain, many claimants will sell their claims to receive a fixed amount more quickly. Therefore, the sale of settlement claims is a rather standard practice. In our case, the DOL and lead counsel for the Claimants, as defined below, and the Independent Fiduciary for the plans agreed to explore whether the settlement claim should be sold at a reasonable price, went through considerable due diligence concerning a fair price, and the District Court ultimately approved its sale to Bear Stearns. Large financial institutions, such as Bear Stearns, have the financial ability to purchase claims for amounts that they believe are less than they may eventually be paid through the bankruptcy. There is no assurance that Bear Stearns will collect more than it paid to purchase the claim.
Who is eligible to receive proceeds from the Tittle Settlements?
Class action members ("Claimants") who lost value attributable to Enron Corp. stock in the Savings Plan may be eligible to receive proceeds from the settlement. The Savings Plan includes all predecessor and successor plans that held Enron Corp. stock as an investment vehicle during the Class Period. These plans include the ESOP, which was merged into the Savings Plan after the Company's December 2, 2001 bankruptcy filing, the Portland General Electric Company 401(k) Plan (the "PGE Plan"), and the EOG Resources, Inc. Savings Plan (the "EOG Plan"), (collectively the "Plan" or "Plans").
Recipients of proceeds from the Tittle Settlements may also include the alternate payees, surviving spouses and beneficiaries of the Claimants. In addition, Cash Balance Plan Claimants who had an ESOP offset and did not take a full distribution of their ESOP retirement account holdings prior to January 1, 2001 are also eligible to receive proceeds from some of the settlement funds. Please note that you may not be a Claimant in all of these settlement funds because of the timing differences in the Class Periods.
What are the Enron Corp. stock prices used as the opening and closing balances in the Tittle Action -- Settlement Fund(s) Allocation Statement?
The Enron Corp. stock prices used were the stock prices in place on the opening and closing account balance dates under each settlement fund, as shown below. In certain cases due to data availability, an end of month balance and market value was used.
Why isn't the Cash Balance Plan portion of any of these settlements included in these allocations?
The allocation related to the Cash Balance Plan requires that additional information be collected to determine all eligible recipients. Because the research involved is a very time intensive endeavor, this calculation and allocation will be made at some point in the future.
What is the significance of the Class Periods?
The time periods involved in each of the settlements were defined by the class action lawsuit and set the participation periods used to calculate losses.
What is the Settlement Fund I-S allocation?
Settlement Fund I-S represents funds that were reserved for legal expenses from the Company Settlement that were not incurred. They have now been released by class counsel and are available for allocation.
Initial Calculation Mistakes
I thought a settlement fund allocation was distributed in 2006. What happened?
You may recall receiving a communication dated June 15, 2007, in which you were advised that the third party professional services firm (Hewitt Associates, LLC) ("Hewitt") retained to calculate the initial allocation of the Tittle class action settlement proceeds included in the Company Settlement (Fund I) had discovered mistakes in its calculations. Consequently, class members were advised that, as a result of these miscalculations, most of the initial allocation amounts were incorrect. Included with that communication was a copy of the Motion for Approval of Modifications to the Second Supplemental Amended Plan of Allocation and a Supplemental Motion, filed in the District Court on May 29, 2007, and June 15, 2007, respectively. An Order approving those motions was entered on July 27, 2007. Copies of these documents can be viewed on the website, www.enron.com, under the "For Employees" section (click on the "Tittle/DOL Settlement Allocation" link under the "Key Information" section.)
As a result of these events, the initial allocation has now been revised and the revised allocation amounts have been determined for the affected class members. Additionally, the allocation calculations for five other settlements (plus a supplemental allocation for Fund I) have been completed. Your "Total Recovery Amount" (which is a summary of your share of all current settlement funds) is shown on the last page of the attached Tittle Action – Settlement Fund(s) Allocation Statement.
How was the calculation mistake made in the initial allocation last year?
Hewitt, the third party professional services firm retained to calculate the allocation of the Company Settlement (Fund I), failed to use one or more correct numbers in performing the calculations. Once the mistakes were brought to Hewitt's attention, steps were immediately taken to initiate corrections. For more information regarding these mistakes, please refer to the "Motion for Approval of Modifications To Second Supplemental Amended Plan of Allocation" and the "Order Granting Motion for Approval of Modifications To Second Supplemental Plan of Allocation." These documents can be found on the www.enron.com website under the "For Employees" section (click on the "Tittle/DOL Settlement Allocation" link under the "Key Information" section).
How do I know the numbers on my Tittle Action - Settlement Fund(s) Allocation Statement are correct?
As per the Motion and Order, the revised, corrected allocation of the Company Settlement (Fund I) has been certified by Hewitt. Hewitt has assured Enron, as required by the Order, that it has used its best efforts to identify and rectify all mistakes in its initial allocation and considers its revised allocation statements to be true and correct. The Order also provides a mechanism for Claimants to review and accept or dispute their allocation calculation based on their own personal records. In addition, a different outside professional services firm – Mercer – has been hired to calculate the allocation amounts for the remaining settlements. Mercer has vast recordkeeping and benefits consulting experience. The calculation methodology, as well as the calculations themselves, has undergone extensive checks.
My Tittle Action – Settlement Fund(s) Allocation Statement shows "N/A" for some of the settlement funds. Why?
Your statement shows all settlement funds, indicating "N/A" (not applicable) if you were not a class member entitled to participate in that particular fund. Remember, the Class Periods vary for these settlements and you were only a member of a specific class if your Plan or Plans' account(s) held Enron Corp. stock as an investment during the relevant period of time.
I don't understand the Allocation Statement--can you explain it to me?
The Tittle Action – Settlement Fund(s) Allocation Statement provides you with all of the calculation components used in determining your "Total Recovery Amount," if any, from any or all of the six fund settlements (including two allocations for the Company Settlement) involved in this allocation. Your allocation, as calculated in accordance with the Second Supplemental Amended Plan of Allocation approved by the District Court, was also determined by comparing your loss to the total plan loss of all members of the settlement class. The calculation components include:
Each of these components is also identified by Plan. The grand total of all the individual settlement calculations to which you are entitled is reflected in the section entitled "Total Recovery Amount." For additional information on the calculation components, please refer to the component descriptions provided on the last page of the Tittle Action – Settlement Fund(s) Allocation Statement.
How were the settlement amounts calculated?
Specifically, your settlement allocation, as per the Second Supplemental Amended Plan of Allocation approved by the District Court, was determined by comparing your loss to the total loss of all other Claimants. In general terms, your loss was calculated by taking the dollar value of Enron Corp. stock in your account at the beginning of each Class Period; adding the dollar value of Enron Corp. stock purchased in your account during the Class Period; subtracting the dollar value of Enron Corp. stock sold in your account during the Class Period; and subtracting the dollar value of Enron Corp. stock remaining in your account, if any, at the end of the Class Period. Then, your loss was aggregated with the loss of all the other Claimants to determine the total loss for the Class Period. Your loss was then converted to a percentage of the total Plan loss. Your settlement allocation is the same percentage of the settlement fund as your percentage loss relative to the total loss of all the Claimants. The results of these calculations for each of the referenced settlement funds are reflected on the attached Tittle Action – Settlement Fund(s) Allocation Statement.
Where can I go for more information about my allocation under the Tittle Settlements?
For specific information regarding your allocation, please refer to the Tittle Action – Settlement Fund(s) Allocation Statement provided with this communication. This statement includes information about each of the settlement funds in which you participated, as well as a summary of your total recovery, if any. You can also find the Second Supplemental Amended Plan of Allocation posted online at www.enron.com.
Allocation Acceptance/Dispute Process
What do I need to do now?
Please review the information provided in the Tittle Action – Settlement Fund(s) Allocation Statement. If you agree with your allocation amounts, please complete and return the "Allocation Acceptance Form." If you do not agree with the allocation amounts, please complete and return the "Disputed Allocation Form." Both forms are included in this packet. Disputes will be reviewed and decided by the court-appointed "Special Master."
What is the role of the Special Master and how is the appointment made?
A "Special Master" is experienced in resolving disputes, and is appointed by the appropriate court involved in the dispute. The Special Master is responsible for reviewing all information related to a disputed claim and reaching an unbiased decision regarding the claim based on the information provided. The District Court appointed the Honorable Katie Kennedy as the Special Master for the Tittle Settlement. Judge Kennedy is a well-respected neutral party with an active mediation and arbitration practice, and was formerly a judge in the 164th District Court in Harris County, Texas. She has previously acted as an assigned judge in the State courts of several Texas counties, has mediated and arbitrated hundreds of disputes, and also served as a special master in other federal court actions. Her appointment as Special Master was unopposed by the lead counsel for the Claimants.
By when do I have to return my Allocation Acceptance/Disputed Allocation Form?
Forms will be accepted as long as they are postmarked within 90 days of the date on the cover letter in this packet.
May I contact the Special Master?
No. Special procedures have been established to assist the Special Master in efficiently resolving all disputes. These procedures do not allow for individual contact with the Special Master.
Can someone help me with this process?
A Tittle Settlement Call Center has been set up to handle your questions about the allocation process, including any actions that you must take with regard to this matter. Additionally, representatives can provide assistance regarding the completion and return of the "Allocation Acceptance" or "Disputed Allocation" forms and verification of receipt or mailing of additional forms. You may contact call center representatives Monday through Friday from 8:00 AM to 4:00 PM Central Standard Time. The toll-free number for calls within the United States is 1-866-490-4188. If you are calling from outside the U.S., please use the international dialing instructions found in the cover letter of this packet.
What happens if I do not return an Allocation Acceptance or Disputed Allocation Form?
If you fail to return either form within 90 days of the date shown on the cover letter, you will have accepted, by default, all settlement allocation amounts as shown on your statement and those amounts will be final and binding on all parties, including you.
I live outside the U.S. Can I still use the postage-paid return envelope?
You will need to affix postage of the country from which you are mailing the envelope over the postage provided. You can still return the envelope enclosed, but the postage on the envelope is only for mailings made inside the U.S.
Does the return envelope contain sufficient postage?
The envelope contains sufficient postage to return your Allocation Acceptance/Disputed Allocation Form and, if applicable, your Repayment Tracking Form. If you are enclosing documentation to support a dispute, you may need to add postage.
I want to dispute the amounts; however, I have no evidence. What can I do?
Evidence is a requirement for the Special Master to review your dispute. If you do not have evidence, you are not able to dispute any amounts shown on your allocation statement.
What type of documentation will the Special Master require as evidence in reviewing my dispute?
Account statements, transaction confirmations or other written documentation regarding your Enron Corp. stock holdings will be considered as evidence supporting your dispute.
How can I make sure my Allocation Acceptance/Disputed Allocation Form was received?
From anywhere in the U.S., you may call the Tittle Settlement Call Center at 1-866-490-4188. International callers should follow the dialing instructions found in the cover letter of this packet. The Tittle Settlement Call Center can verify receipt of your allocation form as long as it has been at least two weeks from the date you mailed your form. Additionally, you can elect to send the form via certified mail. For more information regarding certified mail, please contact your local post office.
I have misplaced my Allocation Acceptance/Disputed Allocation Forms. How can I get another?
You may call the Tittle Settlement Call Center and request that a replacement packet, including all forms, be mailed to you. The toll-free number from anywhere in the U.S. is 1-866-490-4188. If you are calling from outside the U.S., please follow the international dialing instructions found in the cover letter of this packet. Please keep in mind that the 90-day response window began the date the initial letter was sent.
I lost my enclosed postage-paid envelope. What should I do?
A. You will need to pay the postage and send your form(s) to:
Enron Corp. Savings Plan
I have already returned my Allocation Acceptance Form. How do I rescind my Acceptance?
You have 40 days after you submit your Allocation Acceptance Form to rescind your decision. The 40 days will begin on the date your return envelope is postmarked. If you are still within the 40-day window, you may complete the Disputed Allocation Form and mail it to:
Enron Corp. Savings Plan
How long will it take to get a response regarding my dispute?
The Special Master has 45 days to review and respond to your dispute. The 45 days will begin on the date the envelope enclosing the Disputed Allocation Form is postmarked.
Enron must have the Savings Plan and/or ESOP documents or other Plan documents regarding my account history because they were used in the calculation. Why can't that information be provided to me so that I can do my own calculation and, if necessary, use it to support my dispute of the allocation amounts?
The purchase and sale transaction information aggregated in the allocation calculations were previously provided to Claimants via single transaction purchase/sale confirmation statements, quarterly benefit statements, and tax reporting documents. Additionally, your personalized Allocation Statement provides each of the calculation components, including: the Class Period opening balance attributable to Enron Corp. stock; the net total of purchases/sales attributable to Enron Corp. stock during the Class Period; and the Class Period closing account balance attributable to Enron Corp. stock, identified by Plan (Savings Plan or ESOP). This data is provided for any of the six settlement funds (includes two allocations for Fund I) for which you are an eligible class member. Because of the large number of Claimants and the corresponding enormous volume of transactions possible in a daily valued environment over a period of years with many vendors involved, it is not feasible to provide the personalized transaction detail to each class member. Please refer to your personal benefit records during your review.
Will my allocation amount change?
It is possible that final allocation amounts may change once all disputes have been resolved. In the meantime, the allocation amounts will accrue interest until distribution.
Where are the settlement funds being held?
The settlement funds have been held for the benefit of the Claimant class by their court-approved Class Counsel. Once the settlement funds are transferred from Class Counsel to the Savings Plan trust, the settlement funds will be held at Wilmington Trust Company and will be invested in the Wilmington Prime Money Market Fund Class W Shares.
How will the settlement allocations be distributed?
Once all of the final allocation amounts are determined, you will receive a notification regarding your distribution options. If applicable, an election form listing all of your available distribution options will be provided to you. Your settlement allocation may be distributed in one of the following ways:
If I fail to make a distribution election and my allocation is transferred to a default IRA, how will the funds be invested?
If your allocation is transferred to a default IRA, it will be invested in a manner that complies with the DOL safe harbor rules to preserve principal and provide a reasonable rate of return.
When can I expect my allocation?
Allocation distributions are projected to be made sometime in 2008. This should provide adequate time for dispute resolution, final calculations and the processing of distribution elections.
Death of Claimant
The Claimant is deceased and I believe I am the beneficiary. How can I have the allocation information updated to reflect this?
The allocation information for a deceased Claimant can only be transferred to the beneficiary previously identified by the Claimant on a valid "Designation of Beneficiary Form" ("Beneficiary Form") and on file with regard to the Savings Plan/ESOP. In the absence of a valid Beneficiary Form for the Savings Plan/ESOP, the Savings Plan provisions governing the benefits for a deceased Claimant will prevail. In order to update the allocation records to the valid beneficiary, the following documents must be submitted to the Enron Creditors Recovery Corp. Benefits Department: a certified copy of the Claimant's death certificate; the beneficiary's contact information (name, address and daytime telephone number); the beneficiary's date of birth; and the beneficiary's Social Security number. Please send the document and requested information to:
Enron Creditors Recovery Corp.
If you have questions on this process or wish to discuss it further, you may leave a message with your name, telephone number and the deceased Claimant's name on the Enron Creditors Recovery Corp. Benefits Department message center at 1-800-332-7979. A Benefits Department representative will call you back as soon as possible.
If I die before receiving my settlement, what happens to my allocation?
If you die before receiving your settlement, your allocation funds will transfer to the beneficiary identified as your named beneficiary on a valid "Designation of Beneficiary Form" ("Beneficiary Form") on file with regard to the Savings Plan/ESOP. In the absence of a valid Beneficiary Form for the Savings Plan/ESOP, the Savings Plan provisions governing the benefits for a deceased class member will prevail. If you would like to update your Beneficiary Form you may do so at any time. Beneficiary Forms are available on the Enron website, www.enron.com, under the section entitled "For Employees" (click on "Designation of Beneficiary.") Completed forms should be returned to:
Enron Creditors Recovery Corp.
If you are unable to access the Enron website, you may contact the Tittle Settlement Call Center representatives Monday through Friday from 8:00 AM to 4:00 PM Central Standard Time and request that a Beneficiary Form be mailed to you. The toll-free number from anywhere in the U.S. is 1-866-490-4188. If you are calling from outside the U.S., please follow the international dialing instructions found in the cover letter of this packet.
Overpayment Recovery Process
What if the Total Recovery Amount reflected on the Tittle Action - Settlement Fund(s) Allocation Statement indicates an aggregate distribution amount that is an (Overpayment Owed to Plan)?
If it is determined that you received an overpayment due to the calculation mistakes related to Fund I and your allocation(s) from the additional Tittle settlements do not fully offset the overpayment, you are receiving an insert with this mailing entitled "Tittle Action Recovery Process Information" explaining the course of action and the steps that will be taken to address the overpayment.
Why was my Tittle Fund I distribution defaulted to a Wilmington IRA if I made an election to receive a cash distribution or a rollover distribution?
If elections were received after the established deadline, distribution procedures provided for an individual retirement account ("IRA") to be established at Wilmington Trust Company. In other cases, elections were not submitted in a complete and acceptable manner and the default distribution process was to be applied. If your distribution was processed as a Wilmington IRA rollover, you can obtain information about your account by calling Wilmington Trust Company at 1-888-494-5883.
If I made no distribution election for the Tittle Fund I distribution and expected a default Wilmington IRA to be established or a Wilmington IRA was to be set up as a result of an invalid election, why wasn't it ultimately processed?
Due to the volume of these types of distributions, a default Wilmington IRA may not have been established prior to the discovery of the calculation mistake. In addition, for those Claimants with distributions of $5,000 or more who were defaulted to a Wilmington IRA, additional steps required to establish an IRA were pending when the calculation mistake was discovered; once discovered, all distribution activity was suspended so that the mistake could be corrected and valid distributions made. In such cases, your allocation statement has been adjusted to reflect that you did not receive an initial distribution.
The funds representing these allocations remain on deposit in the Savings Plan trust, earning interest. Any payments due you from Fund I will be paid with interest once all necessary steps as provided in the Order Granting Motion for Approval of Modifications to the Second Supplemental Plan of Allocation have been completed, including the resolution of any disputes filed by Claimants related to the revised calculations for the Company Settlement and the allocation calculations for the remaining Tittle settlements.
What is the purpose of the Repayment Tracking Form?
By including the Repayment Tracking Form with your return of the Overpayment Owed to Plan, there is less likelihood of error when crediting your payment.
What are the possible tax implications of an initial overpayment from the Company Settlement (Fund I) and my repayment to the Savings Plan?
Specific tax implications vary depending on the circumstances of the overpayment and whether the overpayment was rolled over to an IRA or other qualified retirement plan. You were issued a Form 1099 in 2006 or 2007 for your initial allocation amount. A revised Form 1099 will not be issued to you. You will need to consult with your personal tax advisor to determine the tax implications that apply to you, including whether any repayment may be deductible under IRS rules.
What is meant by an "ineligible rollover?"
Tax laws outline what contributions can be made to an IRA or other qualified retirement plan. All other contributions are ineligible and subject to tax penalties. If you received an overpayment of the Company Settlement (Fund I) and rolled that amount over to an IRA or other retirement plan, that contribution is an ineligible rollover.
Is the entire amount of my distribution from the Company Settlement (Fund I) considered an ineligible rollover?
No. Only the amount shown on your Tittle Action - Settlement Fund(s) Allocation Statement under "Settlement Fund I" as an "Overpayment Owed to Plan" is ineligible for rollover. However, if you received allocations from Funds I-S through VI that fully or partially offset the overpayment, only the net overpayment is considered an ineligible rollover.
I elected a rollover for part of my Company Settlement allocation, received the remainder in cash, and have a net overpayment that I owe the Savings Plan. What do I need to do?
Under IRS rules, the net amount of your overpayment, shown as the Total Recovery Amount (Overpayment Owed to Plan) is not eligible for rollover to an IRA or another qualified retirement plan. You will need to withdraw the amount indicated as your Total Recovery Amount plus applicable earnings (or your remaining rollover amount, if less) from the IRA/other qualified retirement plan. Failure to withdraw these funds may result in certain additional taxes and penalties for ineligible rollover contributions.
Will the Savings Plan pay the cost of meeting with my tax advisor regarding the effect of the initial overpayment?
The Savings Plan is not responsible for costs you incur with your tax advisor.
If the overpayment I owe the Savings Plan could change once all disputes are resolved, why should I make payment now?
It is expected that final dispute resolutions should have minimal impact on the Total Recovery Amount currently calculated. If this process results in a reduction of the overpayment amount you have paid to the Savings Plan, you will receive a return of the payment difference.
How can I determine the investment earnings that apply to my ineligible rollover?
Contact either the financial institution in which you maintain the IRA or the plan administrator for the other qualified retirement plan to determine this amount.
I received a 1099-R for a distribution from Wilmington Trust Company of which I was unaware. Why did I receive the 1099-R and what do I do if I have already filed my tax return?
If your initial Fund I allocation was paid as a rollover to a Wilmington IRA (the default form of distribution if no election was received from a Claimant), you were issued a 1099-R by Wilmington Trust Company as part of your income tax filing with $0 taxable amount reflected in Box 2a. You will need to determine whether you are obligated to file an amended tax return for the year the payment was rolled over; at a minimum, you should retain this documentation as well as account statements from Wilmington Trust Company should you need to confirm to the IRS that the rollover was completed.
My address has changed. How do I update the Savings Plan records?
Please go to www.enron.com to update your address. Click on "For Employees" at the top of the page and then click on the option titled "Benefit Address Change Form." Complete the "Change of Address" form and click "Submit" to update your address. If the address reflected on your Allocation Acceptance/Dispute Form is incorrect, you may also write in your new address on the form (print legibly) and it will be used to update Savings Plan records on a one-time basis.
My name has changed – how do I update the Savings Plan records?
You must submit documentation supporting your name change before Savings Plan records may be updated. Please provide a copy of one of the following documents along with your name change request: Social Security card; applicable pages of a legal document, such as a divorce decree or marriage license; or a valid U.S. passport. You can fax your change request to the Enron Creditors Recovery Corp. Benefits Department at 1-713-646-8540 or you can send the information to:
Enron Creditors Recovery Corp.
Please remember to also update your mailing address, if necessary, following the instructions noted previously.
I lost a lot of money in Enron Corp. stock and still have shares that are now worthless, but my Total Recovery Amount indicates that I am not entitled to anything. How is that possible?
The allocation calculation does not cover any lost value attributable to Enron Corp. stock you may have held in personal IRAs or brokerage accounts unrelated to the Plans. Transfers of Enron Corp. stock from the Plans to other investments, IRAs, mutual funds or brokerage accounts are deemed to be sales, under the allocation formula described in the Second Supplemental Amended Plan of Allocation, and the value of that Enron Corp. stock at the time of those transactions was recorded as a sale.
Are there any other pending Tittle settlements that might apply to Enron Corp. Savings Plan claimants in the future?
A proposed settlement with the Estate of Mr. Kenneth L. Lay provides a $12 million claim that ensures Claimants will receive a fair share of the assets of the estate that remain for distribution, if any, after all of the claims against the estate have been processed.
A proposed settlement with Mr. Jeffrey K. Skilling provides Claimants with benefits that are contingent on the outcome of the criminal proceedings related to his conviction. If his conviction is affirmed on appeal, a Victims' Fund exceeding $40 million will be administered by Judge Harmon in the consolidated ERISA and Securities cases, with an allocation formula to be determined by the court at a later date. If his conviction is overturned on appeal, Claimants will receive $2.5 million in cash.
One of my former co-workers received a large allocation amount but my recovery was minimal. We both worked for the company for the same number of years, had similar salaries and identical contributions to the Savings Plan. Why did he get so much more than me?
The allocation calculation considered all Enron Corp. stock transactions within the Plans, including the transfer to other investment options within the Plans or the rollover of Enron shares from the ESOP to an outside investment firm or IRA. Additionally, the disbursement of any loans or distributions from these Plans that resulted in the liquidation of Enron Corp. stock was recorded as a sale under the allocation formula described in the Second Supplemental Amended Plan of Allocation. Similarly, the transfer of funds and the allocation of additional holdings in Enron Corp. stock within the Plans were both viewed as purchase transactions. All of these transactions had a direct impact on each Claimant's allocation calculation. In the daily valuation environment that existed, it is very unlikely that all of your transactions were identical to those of your friend, and the difference in allocation amounts is understandable.
Will I ever be entitled to any money from the Enron shares that I am still holding in certificate form or at my investment firm?
I held PGE shares in my PGE Plan account that were converted to Enron shares in 1997. How is that transaction treated for purposes of the loss calculation?
For PGE employees whose PGE stock converted to Enron Corp. stock during a Class Period, the conversion has been treated as a purchase as of the conversion date. Therefore, for any Class Period beginning prior to July 1, 1997, your opening balance will generally be reflected as zero value, to reflect the amount of Enron Corp. stock held at that time.
I received an allocation from this settlement, but my former spouse did not. A Qualified Domestic Relations Order ("QDRO") was filed granting my former spouse a portion of the benefits in the Savings Plan and/or the ESOP. Why didn't my former spouse receive the benefits due him/her from this allocation?
The provisions of the QDRO, as well as the timing of the account segregation, have an impact on the allocation of settlement proceeds. If your former spouse's account was not established during the settlement period, then the allocation calculation may have been based solely on your account. Additionally, if your QDRO did not specifically mention the division of settlement proceeds from the Savings Plan, the recovery amounts, if any, would be allocated solely to the account upon which the calculation was based, which would be your account.
I believe my former spouse is entitled to a portion of my recovery under this settlement because we were married during the relevant period of time, even though a QDRO was not filed in advance of the allocation. How can my former spouse get his/her share of my recovery?
In order to assign any portion of your settlement proceeds to your former spouse, Enron must receive a court certified QDRO providing instructions with regard to the disposition of benefits from the applicable benefit plan. Any QDRO regarding settlement proceeds should reference the Savings Plan, as settlement proceeds, if any, are attributable to that plan.
Where do I send the QDRO?
A certified copy of the final QDRO should be mailed to:
Enron Creditors Recovery Corp.
A QDRO was previously filed with Enron indicating that my former spouse was entitled to receive a portion of any settlement proceeds I received. Why didn't my former spouse receive any information regarding his/her share of the recovery?
If your former spouse is not identified as a claimant in this settlement, a review of the existing QDRO will need to be completed to determine whether or not the QDRO awards your former spouse a portion of your settlement proceeds. In order to expedite this process, please forward a certified copy of the final QDRO, along with your former spouse's contact information, to:
Enron Creditors Recovery Corp.
Once the review of your documentation has been completed and the appropriate beneficiary(ies) of the settlement proceeds has been determined, your former spouse will be notified and provided with any additional information.