The consolidation in the record-keeping field makes it extra important for retirement plan sponsors to keep current with oversight and evaluation duties. For example, what do you know about the tech platforms and cybersecurity protocols of your record-keepers?
Oversee and Evaluate
With the release of guidance from the Department of Labor (DOL) this year, plan sponsors were given detailed protocols for reviewing the cybersecurity practices of service providers. As reported in Benefits Pro, Mercer’s experts have advised plan sponsors to keep an eye on consolidation in the record keeping industry. As companies and leadership change—so too might the tech:
Fee compression and increasing technology spend have led to a dramatic wave of consolidation among record-keepers…. Given the recent spate of litigation targeting DC plans, sponsors need to be diligent about overseeing current providers and constantly evaluating alternatives. That oversight extends to understanding the underlying technology platform used by the record-keeper and their shift to the cloud. While benefits will eventually come from this model, in the meantime it is important to be aware of the challenges that may come along with it. In addition, do not forget about ensuring cybersecurity controls are up to par, especially given the Department of Labor’s new focus on cybersecurity.
No matter how much trust you put in your record-keeper—and your own diligence, do not forget to secure protection. With expanding ERISA fiduciary responsibilities, and the rise in cybercrime, this is an especially critical time to secure fundamental protections for your retirement plan, your business and yourself. As a retirement plan sponsor, there is always a risk, despite your best efforts, that you could face personal exposure for a breach in your fiduciary obligations.
Consider this, the cost of securing guidance from an expert ERISA attorney averages about $600—per hour. Why not let Colonial Surety provide protection, via our affordable fiduciary liability insurance? With an annual premium that is less than one hour with an expert attorney, you will get peace of mind that your personal assets are protected from a breach of responsibility in the administration or handling of the employee retirement plan.
Informed and engaged participants remain important for successful retirement plans. Leveraging technology in new ways is of course a great way to ensure that participants are up to speed on their investment options and plan services. According to experts, record-keepers are increasingly using digital communications—and this can be good for participant engagement:
If we were plodding toward a more digital world two years ago, COVID-19 gave us all a giant push. With many in the workforce sent home to work remotely, technologies like Zoom and paperless transactions became not only the norm but also a necessity. Plan sponsors should take advantage of this dynamic to stage more frequent, targeted and cost-effective engagement strategies….
With more digital communication, of course comes more exposure to cyber threats. That is another reason to check up on the cybersecurity protocols in use by your record-keeper currently. Updating your own protection plan is also important. Colonial Surety provides a comprehensive and affordable protection package specifically designed to help plan sponsors. Choose your package today and be confident that you have:
- The up to date ERISA bondrequired to protect the assets of the retirement plan from theft;
- Fiduciary Liabilitycoverage to protect you and your assets from personal liability; and,
- Cyber Liability coverage to safeguard your company and plan from covered losses and expenses in the event of a cyber breach.
Colonial makes it so easy to secure all this coverage that you can do it now, right here:
Colonial Surety Company is in business all across the USA. We are rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.
Serving customers since 1930, Colonial Surety is the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance and cyber-liability insurance. We help safeguard plan sponsors, pension professionals and financial advisors – and keep their businesses compliant – with pain-free, efficient, and friendly service every time.