If you want to stay out of DOL trouble, here’s what I’d tell you over a drink,no legalese, just practical advice.
1. Cybersecurity is a fiduciary issue. The DOL is digging deep into cybersecurity practices, going well past HIPAA compliance. Having an “IT policy” on the shelf won’t cut it. Auditors will want to see meeting minutes, risk assessments, device policies, and even how you handle portable devices and payroll data.
2. Vet and tighten your vendor contracts now. Review your agreements with vendors and recordkeepers (especially those handling participant data or payroll info). Make sure the contracts require strong data security standards, reporting on cyber incidents, encryption, and notifications. And yes—make sure the vendors can’t wiggle out of liability when things go sideways.
3. Look for documentation, not just policies. It’s easy to write a cybersecurity plan, less easy to prove you executed it. The DOL will ask for audit reports, risk assessments, training logs, breach investigations, and communications about security protocols. If you don’t have documented follow-through, you’re vulnerable.
4. Train your people, and document that training. Cybersecurity training isn’t just a “nice to have.” It’s expected. Keep records: who was trained, when, by whom, and what materials were used. The DOL is looking for that chain of evidence.
5. Check your insurance, and insist on cyber coverage. Cyber-insurance isn’t just for tech companies. Review your policies now—what do they cover? Do they address social engineering, phishing, identity theft, or data breaches? What are the limits? Have you made claims before? The DOL might ask.
6. Bring cybersecurity into your plan oversight meetings. Just like you review investment performance or vendor contracts periodically, cybersecurity should be a recurring agenda item for your plan committee. If you treat it as an afterthought, you’ll have trouble explaining your oversight in a DOL audit.
Final Word: Cybersecurity isn’t just an IT problem, it’s an ERISA oversight issue. If you don’t treat participant data protections, vendor security, and breach preparedness as fiduciary responsibilities, don’t be surprised when a DOL audit rips your plan apart. Better to prepare before the audit letters hit.
