COLLECTED WISDOM™ On Plan Blackout Periods

The issue of "blackout" (often called lockdown or transition) periods has become an important issue. We have started this collection of articles on this issue to help you understand and work throught the subject.

Basic Principles of the Blackout Notice - Summary: A blackout period is defined as a period of more than three-business days during which a participant has been "temporarily suspended, limited or restricted" from any one of the following: directing or diversifying assets credited to their account, obtaining a distribution, or obtaining a loan. This article covers the basics. Located at: McKay Hochman, March 2010. Click on headline to read full article.

DOL Releases Blackout Notice Guidelines - Summary: The U.S. Department of Labor (DOL) has released requirements for blackout notices to 401k plan participants as required by the Sarbanes-Oxley Act enacted earlier this year. The guidance addresses the required contents and timing, includes a model participant notice and is effective for blackout periods beginning on or after January 26, 2003. Located on: Watson Wyatt Worldwide. Click on headline for full article.

DOL Releases Final Rules For Blackout Period Notices - Summary: The text of the Final Regs did not contain any changes, but the preamble to the Final Regs specifies that the blackout notice rules are not intended to apply to rights that are eliminated (e.g., when an investment option is removed from a plan). However, the preamble notes that, if other rights are temporarily suspended, limited, or restricted in the process of eliminating a right, the plan administrator must give a blackout notice regarding the temporary restrictions. Located at: ASPPA , March 2003. Click on headline to read full article.

Public Comments on Blackout Notice and Civil Monetary Penalty Regulations - Summary: Labor Department Issues Rules on Disclosure of Pension Plan "Blackout Periods." They have published the public comments to these rules at this link. Located on: U.S. Department of Labor. Click on headline for full article.

PSCA Releases Answers To Frequently Asked Questions About Plan Lock-Out Periods - Summary: Enron's bankruptcy and the uproar over the "lock-out" imposed on Enron employees that kept them from being able to sell their Enron shares has caused confusion. As a result, the Profit Sharing/401k Council of America (PSCA) has released answers to the most frequently asked questions about defined contribution transaction suspension periods, also know as blackout periods and lockouts. Located on: 401khelpcenter.com. Click on headline for full article.

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