They are clamping down on the employee's 401k Allstate Stock Fund.
If an Allstate employee sells any of their 401k Allstate stock when it is up in price, the employee cannot buy Allstate stock when it is lower because they are locked out from being able to buy Allstate stock back in their 401k for (30) days.
It is even contrary to the 401k plan rules as written.
A cash liquidity problem??????
This is no different then most companies that I have worked at.
If I trade out of a fund, I have to wait 30 days before I buy back in, in my 401K.
(I donot work for Allstate).
Don't get your gander up.
You can work where you work and deal with that....
Dropping the bomb on people hidden unexpectedly in an unrelated general gossip page for the holiday weekend without a reasonable lead time to warn them is called chicken crap.
This company 401k has traded the company stock openly since I can remember the sun rising. This new restriction does not fit in with the rule structure of the already pre-existing fund held in 401k's due to previously existing planned balances and cost basis structures based on an open plan. Those previous balances are now held in a dangerously unmanageble state based on a completely different set of investment rules and a lack of any strategy. Allstate deserves to be hit with an ERISA action for thinking the world changes in a few days with a shady at best announcement, as simply as you whom knows nothing about the real day to day facts about THIS plan and THESE 401k's.
This stock has tanked more than $3 in less than a month and there are employees locked out from cost basis average enhancement "Out of the clear blue sky".
It is not an inconvenience. It is a financial harm done with no lack of the consequences being understood when they were implemented. A direct continual financial harm and reduction of employee rights and benefits for a financial reason that benefits Allstate. That reason is unexplained, uncalled for and reflects on the both the human and financial personality of Allstate Insurance management.
It also puts the financial reasons for suddenly and shiftily making the change in question. Was it for company gain or due to instability? It was one or the other and neither is excused in the manner it was implemented or even implemented at all. It may have even been done out of executive jealousy for all anyone knows.
Where and how was this verified. I just went on the Hewitt site and there no notification of any change. I consistently go in and out with not only the All stock but with the SP500 and Russell 2000. Netted 18% in 2008 when those who sat still lost close to 50% of value.
The market is all about timing right now. No stability at all. Time the swings right and you can put some serious cash on the top.
If you buy today, can you pull out tomorrow? i.e. one transaction per 30 days???
This sucks if thats the case.
It Smells Like Rotten Fish......
Who locks employees out for (30) days to attempt to get them to lock themselves in? I don't know. Enron maybe?
If they sell stock at $26.00 and two weeks later it goes to $23.75, to bad sucker. You are locked out and two weeks later it is $26.00 again.
I guess the best thing is to catch a good spot and dump all of their Allstate stock and go with the Index Fund. The beta becomes to high on Allstate and not worth the risk because there is now great limitations on the rewards.
Notice of a period of more than 3 consecutive business days when there is a temporary suspension, limitation, or restriction on directing or diversifying plan assets, obtaining loans, or obtaining distributions. Applies to most 401(k) or other individual account plans.
Generally, at least 30 days before the blackout date.
Read It All.