Tittle v. Enron

The Enron Corporation Savings Plan, 401(k), is an "employee pension benefit plan" within the meaning of ERISA § 3(2)(A) (29 U.S.C. § 1002(2)(A)). Further, it is an "eligible individual account plan" within the meaning of ERISA § 407(d)(3) (29 U.S.C. § 1107(d)(3)) and also a "qualified cash or deferred arrangement" within the meaning of I.R.C. § 401(k) (26 U.S.C. § 401(k)). The Plan is not a party to this action. Pursuant to ERISA, however, the relief requested in this action is for the benefit of the Plan.

Enron is the sponsor of the Plan. The participants of the Plan were permitted to contribute from 1% to 15% of their eligible base pay to the Plan. Participants directed the investment of their contributions, in 1% increments, to the various investment options available in the Plan. Most of these options were diversified mutual funds. However, the options also included the Enron Corp. Stock Fund and the Enron Oil & Gas Stock Fund (without distinction, the "Company Stock Funds"). The Company Stock Funds invested solely in company stock (and a small portion in cash equivalents for liquidity). Enron matched participants' contributions, at certain specified percentages, by making contributions to the participants' account into the Company Stock Funds. These investments were frozen in the Company Stock Funds in most cases until the participant reached age 50.

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