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Hewitt Asked to Pay $9M for Error in Enron Settlement Payout

Posted Jan 25, 2008 8:12 AM CDT
By Debra Cassens Weiss

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Enron’s successor company is asking a federal judge to order the human resources firm Hewitt Associates to pay $9.15 million to cover an error in settlement payouts to former Enron employees.

Employees in Enron retirement plans are due a settlement of $218 million. When the first $89 million payment was distributed, $22 million went to the wrong people, the Houston Chronicle reports. The error meant 7,700 people were overpaid and 12,600 were underpaid.

The $9.15 million is the amount that cannot be recovered by adjusting the second payments. Hewitt contends it doesn’t have financial responsibility for the error. But Enron Creditors Recovery Corp. says Hewitt should fork out the money and then keep any refunds it can collect for overpayments.

"In the end, Hewitt's stance reduces to the contention that although it admits it wrecked the car, it should not have to pay to fix it," Enron said in court filings.

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