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In July 2002, Congress passed the Sarbanes-Oxley Act
in response to the collapse of Enron Corporation.
The Act, among its many provisions, requires
retirement plans to give participants notice if
there will be a “blackout” – a temporary suspension
of the rights of some or all participants in a plan
to direct investments, receive distributions or
receive loans (example of a “blackout” would be a
change in investment providers). The blackout notice
must be provided to the plan participants 30-60 days
prior to the last date that they will be able to
exercise their full rights under the plan.
A sample blackout notice can be found
here. |
