• Personal Liberties vs. National Security to Be Focus of Debate
  • Peruvian Novelist Vargas Llosas to Speak Wednseday on Campus
  • Visitors From the Deep
  • Options Weighed for Parking Solutions
  • Campus Notes
  • Confessions of a UCSB 'Gadget-Maniac'
  • Energy Picture Brighter, but Has Pluses, Minuses
  • Web Help for Kids
  • UCOP: Retirement Plan Unaffected by Enron
  • Memorial Set for Lost Lives
  • Career Diplomat Name UC Alumni Regent
  • Miniature Black Holes May Open Window to Other Dimension
  • Credits
    •

    UCOP: Retirement Plan Unaffected by Enron


    As a result of the bankruptcy of giant energy-supplier Enron, and the University of California's stock holdings in the firm, the Office of the President has a site on its "News Room" www.ucop.edu/news/archives/2001/enronqa.html devoted to updates on the subject.
    Here are the facts as supplied by UCOP: UC lost $144.9 million as a result of its investments in Enron, including $115.5 million in the UC Retirement Plan portfolio and $14.03 million in the 403(b) Equity portfolio. Because UC invests in a diverse range of stocks and bonds, its Enron losses represent less than 0.3% of the University's total portfolio.
    The Enron losses, while substantial, were more than offset by gains in other investments. In fact, as news of the energy company's financial dealings and fraudulent practices were exposed last fall, UC's retirement portfolio grew by more than $1.9 billion from September 30 to November 30. As a result, the Enron losses will have no impact on UC retirement benefits.
    UC is one of a number of large public and private institutions across the country that invested in Enron based on inaccurate official company statements, documents filed with regulatory agencies, and information audited and certified by Arthur Andersen. On Dec. 21, 2001, the University joined a class-action lawsuit against 29 senior executives of Enron Corp. and its accounting firm, Arthur Andersen. The lawsuit seeks to recover investment losses resulting from the University's purchase and sale of Enron stock between May 2000 and November 2001.
    UC believes that, with vigorous prosecution of the case, it can achieve a substantial recovery on behalf of investors. Given Enron's bankruptcy, it may not be possible to recover all of the investors' losses. Nevertheless, UC is determined to achieve the greatest possible recovery for itself and other investors, including large institutions, pension plans and individuals.
    A decision is expected shortly on whether the University of California or one of the other public funds will be the lead plaintiff in the case. Judge Melinda Harmon of the U.S. District Court for the Southern District of Texas will decide.