NAPA Net - Polling Places 021420

What's the Duty With Participant Data?

Taking a page from a earlier 403(b) university excessive fee settlement, the Schlichter law firm has made a new allegation of fiduciary breach in a 401(k) suit – the unauthorized use of participant data.

Setting aside the legality of that argument, it’s clear that there is, and should be, a great deal of sensitivity regarding the use of participant data.

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* 1. Do the plan sponsors you work with have a policy regarding the use of participant data by the plan's recordkeeper?

Mostly not.

Yes, they all do.

Most do.

Some do.

I'm not sure.

No.

It hasn't come up.

Something else?

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* 2. Has that changed in the past two years?

Yes, they have recently instituted a policy against the outside use of plan data.

No, they had a policy against the outside use of participant data previously.

No, they've had a policy against the outside use of participant data for awhile now.

No, they haven't had a policy regarding the outside use of plan data.

Something else? Any comments?

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* 3. Generally speaking, do the recordkeepers you work with have a policy regarding their use of participant data?

No policy that I know of.

Yes, they don't use it for any purpose beyond servicing the plan without the plan participant's permission.

Yes, they don't use it for any purposes beyond servicing the plan without the plan sponsor's permission.

Yes, they don't use it for any purposes beyond servicing the plan.

Nothing in writing, but they'll accept restrictions of the plan/plan sponsor.

Any comments?

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* 4. Do you/your firm have a policy regarding the "outside" use of participant data?

Yes, they don't use it for any purposes beyond servicing the plan.

No policy that I know of.

Yes, we don't use it for any purposes beyond servicing the plan without the plan sponsor's permission.

Yes, we don't use it for any purpose beyond servicing the plan without the plan participant's permission.

Nothing in writing, but we'll accept restrictions of the plan/plan sponsor.

Any comments?

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* 5. Regardless of current policies, do you expect this recent litigation to produce a new level of concern?

Not sure.

Eventually, perhaps.

Yes, it already has!

Not really.

It depends.

Almost certainly.

Among providers, if not plan sponsors.

Any comments?

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* 6. Is this an issue you will/plan to bring up with your plan sponsor clients?

Yes, already have.

Yes, plan to shortly.

Depends on the client.

Depends on my firm's decision.

Only if they bring it up.

No.

Maybe.

Any comments?

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* 7. Other comments about participant data, the use of participant data, the misuse of participant data, the authorized use of participant data, litigation regarding participant data, the impact of litigation regarding the use of participant data, or life in general?

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* 8. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

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* 9. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 1. Do the plan sponsors you work with have a policy regarding the use of participant data by the plan's recordkeeper?

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* 2. Has that changed in the past two years?

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* 3. Generally speaking, do the recordkeepers you work with have a policy regarding their use of participant data?

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* 4. Do you/your firm have a policy regarding the "outside" use of participant data?

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* 5. Regardless of current policies, do you expect this recent litigation to produce a new level of concern?

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* 6. Is this an issue you will/plan to bring up with your plan sponsor clients?

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* 7. Other comments about participant data, the use of participant data, the misuse of participant data, the authorized use of participant data, litigation regarding participant data, the impact of litigation regarding the use of participant data, or life in general?

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* 8. What is your role working with retirement plans?

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* 9. What size plans do you PRIMARILY work with?

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* 10. Suggestions for future survey questions?