Skilling OKs $85 million for ex-Enron employees

Weeks before he's set to report to prison, former Enron CEO Jeff Skilling has agreed to the distribution of $85 million to former Enron employees, part of a series of settlements totaling $265 million for more than 20,000 workers trying to recover some part of their pensions. "Yes, it's over. Our clients are thrilled," Lynn Sarko, a lawyer representing former Enroners, said. "While they are grateful that some of their retirement money was recovered, it will never make up for the destruction of their retirement nest egg."

The $85 million comes from insurance money covering Enron's directors and executives who sat on the company's administrative committee, a group that included Skilling. Skilling argued that he was entitled to some of that money, too, so he filed an appeal opposing the distribution of the $85 million until the question could be decided. Under the settlement announced by the Labor Department yesterday, Skilling has dropped his opposition to the disbursement and has waived his right to benefits from Enron's pension plan.

It's not clear yet how or when the $265 million will be distributed: U.S. District Judge Melinda Harmon, who is overseeing litigation filed on behalf of ex-Enron employees and shareholders, will be the person to make that decision. Shareholder litigation has recovered a total of more than $7 billion, and there's more to come.