Publications

DOL Finalizes Sarbanes-Oxley Regs on Blackout Period
01/29/2003

The Department of Labor (DOL) issued its final regulations implementing the new requirement that 401(k) plan administrators give participants at least 30 days' prior notice of a blackout period that suspends their rights to change investments or to receive distributions or loans. The new rules, sanctioned in the Sarbanes-Oxley Act enacted last summer in response to Enron and other corporate scandals, are effective January 26, 3003. The rules can apply to any plan that permits participant-directed investments or in-service distributions or loans, but will be most relevant to 401(k) plans. Civil penalty provisions were also issued. Plans maintained by both public and private companies are affected.