Compliance Stuff

It is increasingly evident that artificial intelligence (AI) is reshaping all facets of business, and its impact on employee benefit plans is no exception. From automating plan administration to personalizing participant communications, AI introduces both new opportunities and new responsibilities for those overseeing Employee Retirement Income Security Act of 1974 (ERISA)-covered retirement and health plans (Plans). Plan sponsors and fiduciaries should understand how AI intersects with their legal obligations under ERISA and take proactive steps to leverage this technology responsibly to improve participant outcomes. How AI is Already Impacting Plan Operations AI technologies are already being integrated into various aspects of Plan management and operations. Fiduciaries should understand how these technologies can benefit participants and beneficiaries—and how to mitigate associated risks. Ignoring AI is no longer a prudent option. For example, AI-driven platforms can analyze indivi...

  Cyber-criminals often steal funds and personal data from employee benefit plans. Employers face increasing liability for failures in cybersecurity of the employee benefit plans they sponsor, including for the security of plan assets and data managed by service providers. The DOL has updated its detailed guidance on cybersecurity for ERISA-covered benefit plans. The DOL’s guidance applies to health and welfare plans as well as to retirement plans. In its most recent step to combat cybersecurity risks to employee benefit plans, the U.S. Department of Labor (DOL) clarified on September 6, 2024, that its guidance on cybersecurity applies to health and welfare plans as well as retirement plans. The new guidance underscores the risk to employers that fail to ensure adequate cybersecurity of plan data and assets. B reaches of plan assets and sensitive personal information in plans, such as Social Security numbers, financial account numbers, and health information, occur regularly and c...