Is the cybersecurity of employee benefit plans the employer’s problem?
Unfortunately, U.S. employee benefit plans are prime targets for criminals all over the world. Hackers break into employee benefit accounts and take sensitive data, such as Social Security numbers, and even steal retirement account funds. In some cases, plan participants have lost their life savings. As an employer, you might think, that’s terrible, but how is cybersecurity for benefits plans my problem? The bank that manages our retirement plans is subject to robust financial regulations on cybersecurity – not the employer. The health insurance company that manages our employee health plans is regulated under HIPAA, which has its own cybersecurity requirements. In short, cybersecurity is the problem of our plans’ service providers . Yes, but it’s also the employer’s problem. The Department of Labor now takes the position that employers have a fiduciary duty to ensure adequate cybersecurity, including for plan data and assets held by...