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 ?
A lockdown is exactly how it sounds: inmates are ordered to remain in their cells, sometimes days at a time, and cannot leave them to use the showers or seek medical attention or phone their lawyers or family.
Stubbs said that although local districts follow relatively strict protocol when it comes to lockdowns and lockouts, no two are the same.
The traditional lockdown taught in schools and then brought into the workplace as a trained response was developed in the 1970s for drive-by shootings--threats lasting a few seconds from the street.
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.
In this type of lockdown, nobody is allowed to enter or leave the facility.
Separately, a middle school 2,000 miles away in Washington state went on lockdown after a student brought a toy gun to class.
In a letter to NSW Minister for Justice John Hatzistergos, NSWNA General Secretary Brett Holmes said the union viewed the early lockdown as a cost-cutting exercise, giving rise to serious concerns for the mental and physical well-being of patients and preventing nurses from giving adequate care.
While I respect and agree with the decision to order the lockdown, I like that students were protesting, even if they did not understand all the nuances of the issues behind their protest.
These lockdowns will still be carried out from time to time and we are warning troublemakers and offenders that we are after them," he added
The decrease in the high-end server segment was mainly due to Y2K lockdowns on second-half purchases.
The Philippine National Police (PNP) has issued an apology to the commuters and motorists to what is expected to be another 'carmaggedon' due to series of lockdowns as part of the security protocols for departing leaders and delegates of APEC.
School lockdowns occur on a daily basis and those locked in a room often have little information about what is going on.