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.

Before You Throw That Switch - New Blackout Period Notice Requirements - Summary: Most defined contribution plans allow participants to direct the investment of their accounts in the plan. Sometimes, a plan sponsor must temporarily suspend the ability of participants to change investment selections under the plan, or to take loans or distributions. These periods, known as "blackout periods," can occur for a number of reasons, but the most common are when changes occur in the plan's third party administrator, investment fund provider or other service providers. Do you know the legal requirements regarding "blackout periods?" Located on: Chang Ruthenberg and Long PC. Click on headline for 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.

Blackout Rules Ride With Accounting Reforms - Summary: Along with those corporate accounting reforms, President Bush has today signed into law some new provisions regarding plan blackout periods. Located on: Plansponsor.com - free registrations required. Click on headline for full article.

When Blackouts Are Unavoidable - Summary: Sometimes you cannot avoid a blackout when you are changing recordkeepers. These suggestions will help ease the pain of a blackout. Located on: Plansponsor.com - free registrations required. Click on headline for 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.

Important Issues To Consider in Connection with Lockdowns - Summary: On February 7, ASPA released a white paper addressing the issue of whether federal pension law should contain rules that restrict either the number or length of "lockdowns" of qualified pension plans. It includes a summary of our recent survey of plan administration firms on their typical experiences with lockdowns. Located on: ASPA. Click on headline for full article.

Blackout Blueprint - Summary: When Dick Corporation, a Pittsburgh-based general contractor and construction manager, decided last year to change recordkeepers for its 401k plan, it also decided to get employees directly involved and announce the change heavily in advance. It could not have picked a better time to adopt such a strategy. Located on: PlanSponsor.com - free registration required. Click on headline for full article.

Lockdown Issues - Summary: ASPA is seriously concerned about proposals that have been introduced to regulate the ability of a plan sponsor to lockdown (or more commonly known as "blackout") a plan for various reasonable administrative reasons, including changing service providers. ASPA needs your help and wants you to complete a short survey. Located on: ASPA. 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.

401khelpcenter.com, LLC is not the author of the material referenced in this digest unless specifically noted. The material referenced was created, published, maintained, or otherwise posted by institutions or organizations independent of 401khelpcenter.com, LLC. 401khelpcenter.com, LLC does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.