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Final rules issued on pension "blackout periods"

Final rules implementing a new federal requirement that 401(k) plans give workers 30 days' advance notice of "blackout periods" have been issued by the U.S. Department of Labor. The rights to direct investments, take loans or obtain distributions are suspended during blackout periods, which typically occur when plans change record keepers or investment options or add participants due to a corporate merger or acquisition. Under the final rules, blackout notices must contain the reasons for the blackout, a description of the workers' rights that will be suspended, the start and end dates of the blackout period, and a statement advising workers to evaluate their current investments based on their inability to direct or diversify assets during the blackout period. The rules apply to blackout periods occurring on or after Jan. 26, 2003. 

Click here to read the full text of the rules.

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