Former Enron CEO Jeffrey Skilling agreed to drop his opposition to an $85 million settlement with the Department of Labor and former Enron employees seeking to recover at least part of their pension money, the DOL announced on Nov. 16.
He also will waive his rights to benefits from Enron's pension plan and be permanently barred from serving in a fiduciary capacity to any employee benefit plan.
The $85 million settlement, reached with former company directors and officers in 2004, will come from directors and officers insurance policies. Skilling argued that he was entitled to some of that insurance money and filed an appeal opposing any distribution of the funds.
Skilling is already subject to an order of forfeiture obtained by the Justice Department's Enron Task Force on Oct. 23. That order requires the establishment of a $45 million restitution fund for victims of Enron-related fraud. As part of the settlement announced by the DOL, Skilling agreed that if his conviction is overturned and the restitution fund is dissolved, he will still pay $2.5 million to former employees and $500.000 in penalties to the DOL.
Skilling was convicted in May of fraud and conspiracy and is scheduled to begin serving his 24-year prison sentence next month.