lockdown


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Blackout Period

The period of time during which an employee may not make any changes to his/her employer-sponsored retirement plan. This usually occurs when the plan is being restructured or when administrative changes are being made. For example, a company may institute a blackout period if it is moving management of its retirement plans to a different brokerage. A blackout period normally lasts approximately 60 days. It is also called the lockdown.

lockdown

A prohibition against a firm's employees making changes in the asset composition of their retirement plan. Corporate officials may lock down a retirement plan during a period of administrative changes in the plan. Also called blackout period, quiet period.
Case Study The term lockdown became a familiar component of the finance lexicon following Enron's bankruptcy on December 2, 2001. The company's management had locked down the employees' 401(k) retirement plan five weeks earlier on October 26, when Enron stock traded at a price of $15.40 per share. The lockdown was initially scheduled by directors in March 2001 to facilitate upcoming administrative changes in the retirement plan, a perfectly legal reason. Employees were notified in early October of the coming restriction on changes to the retirement plan. Unfortunately for Enron employees who chose to maintain most of their funds in Enron shares, the firm's stock price declined to $9.98 by the time the lockdown ended on November 13. Thus, employee investments in the firm's stock decreased by approximately 33% during the two-and-a-half-week lockdown period. Some employees claimed to have been misled with regard to the last day they were allowed to make changes to the retirement plan. Other critics claimed Enron's management had knowledge of the firm's severe financial difficulties and, as a result, had a fiduciary responsibility to the employees to postpone the lockdown until the news had been released. Many of the firm's employees maintained a substantial portion of their retirement funds in Enron stock, which by the end 2001 traded for less than $1 per share. The stock had traded above $80 per share early the same year.
References in periodicals archive ?
The all-day launch festival on the 31st Titanic Lockdown is set to offer real music fans the chance to be part of the launch of Titanic Belfast.
Dave Mundy, Operations Director at Delta Security, says lockdown procedures are becoming increasingly prevalent in schools: We have seen increased interest from central London schools, especially around transport hubs such as St Pancras and Liverpool Street for a while now, and more recently in schools further out from the City centre.
onwards) - Complete lockdown of SM Mall of Asia Arena Annex (SM-MAAX) building, Pasay City.
in Jordan, and has not chosen to invest sufficient resources so that the problem of lockdowns caused by staff shortages can be alleviated.
The lockdown that day was imposed after a 15-year-old boy sent a threatening text to an adult.
Identifying facilities that are improperly positioned to respond to these threats--in part by inappropriately relying on lockdown as the primary response, regardless of circumstances--should be reflected in higher premiums for these events (up to the loss of an entire facility and its people).
According to a local news report, police explained afterward that the continued lockdown was "critical to gathering evidence to preserve the integrity of their investigation.
The government has been at the receiving end of harsh criticisms from both the netizens and some politicians due to the traffic jams created by lockdown policy since Monday.
MTV Live Lockdown will be broadcast across MTV's UK music TV channels on October 30.
WASHINGTON (CyHAN)- The White House is under security lockdown after a loud noise was heard on the South Lawn, a White House pool report said on Saturday.
A 23-year-old man has been charged after a Facebook message threatening to "shoot up" a west end police station caused Ottawa police to lockdown all eight stations for nearly four hours on Tuesday.
TEHRAN (FNA)- The headquarters of the Australian Federal Police in the city of Brisbane was placed on lockdown after receiving a bomb threat via the National Security Hotline.