Access to Retirement Plan Data: The Next Wave of Fiduciary Litigation?

“As retirement plan administration has become more and more digitized over the years, retirement plan sponsors and recordkeepers have become the custodian of a variety of sensitive plan participant data.  Information such as personal investment history and preferences, details on financial assets held outside of the plan and earnings history are often collected and retained by plan sponsors and third-party recordkeepers and plan administrators, most notably vendors for 401(k) plans. Often, this information can paint a very accurate picture of a plan participant’s financial wellness and retirement strategy. Moreover, the value of this information is not lost on certain vendors who collect and retain it, and the use of this data is the focus of an emerging area of retirement plan fiduciary litigation.” Continue reading.

Source: Morris, Manning, & Martin, LLP