Principal Acquires KeyCorp 401(k) Business

A blackout period is a transition period when members of a defined-contribution plan cannot change asset allocations or make other major investment moves.

Enron Corp., Houston, triggered lawsuits and congressional attacks in late 2001 when it imposed a blackout period on its 401(k) plan members, who had a high percentage of their assets in Enron stock, at a time when the Enron share price was plummeting.

“Our mutual goal is to minimize the blackout period to be far less than industry norms,” Daniel Houston, a Principal senior vice president, says in the deal announcement. “The Principal has extensive experience in plan conversions, performing more than 1,000 each year.”

Principal will give the former KeyCorp plan participants access to a wide variety of educational services and automated investment management and analysis tools, Principal says.