Through Compliance Assistance Release No. 2024-01, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) announced that the cybersecurity guidance released in April 2021 generally applies to all employee benefit plans, including health and welfare plans.
ERISA Fiduciary Obligations
Plan fiduciaries of ERISA-covered pension plans and health and welfare plans have an obligation to ensure proper mitigation of cybersecurity risks.
Employers and other sponsors of health, welfare, 401(k) and other types of pension plans often rely on service providers to maintain plan records and keep participant data confidential and plan accounts secure. Plan sponsors should use service providers that follow strong cybersecurity practices.
Background
In 2021, EBSA issued cybersecurity guidance to help plan sponsors, fiduciaries, service providers, and participants in employee benefit plans safeguard plan data, personal information and plan assets. However, in the years since, health and welfare plan service providers have told fiduciaries and EBSA investigators that this guidance only applies to retirement plans. Thus, it was recommended in 2022 that EBSA clarify that the guidance also applies to health benefit plans.
Updated Guidance
The Compliance Release clarifies that the cybersecurity guidance applies to all types of plans covered by the Employee Retirement Income Security Act of 1974 (ERISA), including health and welfare plans and all employee pension benefit plans. EBSA is providing the following updated guidance:
- Tips for Hiring a Service Provider: This guidance helps plan sponsors and fiduciaries prudently select a service provider with strong cybersecurity practices and monitor their activities, as required by ERISA.
- Cybersecurity Program Best Practices: This guidance assists plan fiduciaries and recordkeepers in their responsibilities to manage cybersecurity risks.
- Online Security Tips: This guidance offers plan participants and beneficiaries who check their retirement accounts or other employee benefit information online basic rules to reduce the risk of fraud and loss.
Additional Resources
The U.S. Department of Health and Human Services also offers publications that may help health plans and their service providers maintain good cybersecurity practices, as follows:
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
