Cybersecurity and Retirement Plans – What Businesses Need to Know

At the end of 2021, U.S. retirement assets (outside of Social Security) totaled slightly over $40 trillion.¹ With significant assets potentially at risk, protection against unwanted data breaches is necessary.

The Department of Labor (DOL) has begun focusing on the cybersecurity practices of service providers responsible for plan-related data. Since the DOL views cybersecurity as a plan fiduciary responsibility, plan sponsors have a duty to mitigate this risk.

Here are four tips:

1. Select service providers with strong cybersecurity protocols
2. Share the DOL’s online security tips with participants so they can keep their accounts secure
3. Review existing service agreements with legal counsel to ensure these agreements address data privacy and cybersecurity
4. Perform annual cybersecurity reviews with the help of a plan advisor

Most cybersecurity cases surface due to negligence issues. Now is the time to be prepared so you can keep your plan’s assets safe. We can assist you in conducting an annual cybersecurity review that includes facilitating discussions with your service providers to ensure proper security protocols are in place. Contact us to start the conversation.

Source: 1. Congressional Research Service, May 2022