Home > Pension fund losses with Enron
Some of the pension funds that lost money from investing in Enron stock. Florida state board of administration
University of California regents
Georgia state pension fund
Ohio state pension fund
New York City pension fund
Washington state employees
Oregon state pension fund
New Jersey state pension fund
New York state pension fund
California teachers
Alabama retirement system
California public employees
Texas teachers retirement system
Alaska state pension fund
Titan Trading Co, employees(Gabe Zawacki) retirement system
MissouriMissouri named after the Missouri Siouan Indian tribe meaning "canoe", is a Midwestern state of the United States with Jefferson City as its capital. The state's nickname is the State the U. Post Office abbreviation for Missouri is MO and the state public public schools retirement system
NevadaNevada is a state located in the western United States. The population, as of 2000, is 1,998,257. Nevada is the fastest growing state in the country. Between 2000 and 2003, Nevada's population increased 12. 2%, while the USA's population increased 3. state pension fund
MinnesotaMinnesota ( In Detail) (Full size) State nickname: North Star State Other U. States Capital Saint Paul Largest City Minneapolis Governor Tim Pawlenty Area Total Land Water % water Ranked 12th225,365 kmē206,375 kmē18,990 kmē8. 4% Population Total ( 2000) D state pension fund
ConnecticutConnecticut is a state of the United States, part of the New England region. Connecticut was one of the thirteen colonies that revolted against British rule in the American Revolution. USS Connecticut was named in honor of this state. History Main article state pension fund
MassachusettsMassachusetts is a state of the United States of America, part of the New England region. postal abbreviation is MA and its traditional abbreviation is Mass . It is properly called the Commonwealth of Massachusetts although there is no legal distinction b state pension fund
North CarolinaNorth Carolina is a southern state in the United States. North Carolina is one of the thirteen colonies that revolted against British rule in the American Revolution. It is bordered by South Carolina on the south, Georgia on the southwest, Tennessee on th pension fund for state and
local employees
IllinoisIllinois is a state in the United States named after the Illiniwek Indian tribe, which used to live there. The capital of Illinois is Springfield and the U. postal abbreviation for the state is IL . Illinois is pronounced ill-len-NOY, or jokingly, ill-len teachers retirement fund
IllinoisIllinois is a state in the United States named after the Illiniwek Indian tribe, which used to live there. The capital of Illinois is Springfield and the U. postal abbreviation for the state is IL . Illinois is pronounced ill-len-NOY, or jokingly, ill-len state employees retirement system
Los Angeles pension fund
Missouri state pension fund
Illinois universities retirement fund
Rhode Island state pension fund
South Carolina state pension fund
Idaho state endowment fund
Idaho state employees retirement fund
San Francisco pension fund
Losses by Enron Employees
Enron employees also lost pension money as a result of Enron's bankruptcy. Enron's 401(k) plan had employer contributions. Enron's plan required these contributions to be held in Enron stock. Employees could not sell the shares until age 50, even if they left the company. Some employees were with Enron for 10-20 years, and had all their employer matching contributions locked into Enron stock. Even though Enron wasn't 20 years old, Enron had bought out other companies with similar plans, and the stock in these plans were converted to Enron stock after the buyout.
Note that federal law does not require companies to make their matching contributions in company stock, but it does allow them to do so. As a result, Enron's employees couldn't properly diversify their portfolios. There has been some talk of reforming this rule, but no concrete legislation has passed. A rule of thumb is that no more than 5%-10% of your retirement savings should be in one stock.
Enron's 401(k) plan allowed, but did not require, employees to invest their contributions in Enron stock. Around the time that Enron's accounting fraud came public, Enron's 401(k) plan had an "administrator change". Enron changed the vendor for their 401(k) plan administration. As a result, employee accounts were frozen for a few weeks during the changeover. However, the time period for the freeze was not properly announced, and employees were misled into thinking that the time interval of the freeze was longer than what actually occurred. As a result, many employees did not sell off their Enron stock as the accounting fraud was announced and the stock crashed.
