Senator Sparks Files WorldCom Settlement Amendment

Norman Senator Says 11.7 Million Should be Returned to State Pension Funds

Senator John Sparks (D-Norman) said today he has filed an amendment that would invest an $11.7 million WorldCom settlement into Oklahoma’s ailing pension funds.

“I’ve filed this amendment because it is the responsible thing to do for Oklahoma families. Our state retirement systems are under-funded and lost about $66 million from the criminal misconduct of former WorldCom officers,” Sparks said. “We should pay the $11.7 million back to our state retirement and pension systems to help compensate them for those monumental losses.”

He amended a public finance bill, Senate Bill 1868, authored by Senator Mike Johnson (R-Kingfisher).

“My amendment will transfer these settlement monies to the retirement systems and the other state agencies that were harmed as a result of the largest bankruptcy in U.S. history,” Sparks said. “Hard working Oklahomans should not be held hostage by the unethical practices of wealthy corporations.”

With assets in excess of $100 billion at one point, WorldCom filed bankruptcy in July 2002 leaving all of Oklahoma’s public pension systems and a handful of state agencies with heavy losses.

Sparks said the Attorney General settled fraud charges with WorldCom, which agreed to create 1,600 jobs in Oklahoma. Last year, however, an $11.7 million settlement was reached in lieu of the jobs with Verizon Communications, WorldCom’s successor company.