NEWS

Cybersecurity and the role of ERISA fiduciaries

The Employee Retirement Income Security Act of 1974, as amended protects plan participant benefits and account balances by imposing high standards of care on the plan’s fiduciaries. Fiduciaries who do not follow these standards—most notably, the protection of participant personal and plan information—may be personally liable to restore losses to the plan.

Recent technological advancements, especially in the area of cybersecurity, however, have only now become the focus of most ERISA fiduciaries. Due to the increasing frequency and sophistication of cyber-related threats to employee benefit plans, their trustees and third-party plan administrators and the potential financial repercussions, compliance with ERISA fiduciary standards will require implementation of a prudent cyber risk management strategy.