Hewitt Associates Inc. and the Enron Creditors Recovery Corp. agreed Thursday, March 13, to the $11.2 million settlement that resolved a contempt motion filed by Secretary of Labor Elaine L. Chao against Hewitt for having misallocated court-supervised settlement funds owed to Enron employees.

Terms of the settlement were not disclosed.

“This settlement will ensure that all pension plan participants will receive all the funds to which they are entitled,” Chao said.

Lincolnshire, Illinois-based Hewitt was hired by Enron to serve as the administrator for the settlement fund.

The Department of Labor asserted that Hewitt erroneously caused the fund to have insufficient cash to pay Enron workers, retirees and beneficiaries the amounts owed to them when in 2006 they overpaid some participants at the expense of the remaining participants, resulting in a $9.15 million shortfall in the fund.

The settlement restores the funds necessary to provide full payment to plan participants.

Filed by Colleen McCarthy of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.