Key Takeaways from Assistant Secretary of Labor Lisa Gomez’s Discussion at the PLANSPONSOR National Conference
The PLANSPONSOR National Conference in Chicago was buzzing with discussions led by Assistant Secretary of Labor Lisa Gomez, who heads the Employee Benefit Security Administration. Gomez touched on various pressing issues for plan sponsors, including cybersecurity, missing participants, and the Retirement Security Rule.
One key takeaway from Gomez’s talk was the importance of plan sponsors reflecting on the purpose of offering a retirement plan and who they aim to benefit. She emphasized the need for course correction if plans are not effectively serving all participants, especially those who may be lower earners.
Cybersecurity was a major focus, with Gomez highlighting the Department of Labor’s efforts to work with plan sponsors on implementing best practices. The DOL released guidance on maintaining a documented cybersecurity program, conducting annual risk assessments, and encrypting sensitive data.
Artificial intelligence (AI) was also a topic of discussion, with Gomez stressing the need for responsible and protective use of AI in the retirement industry. While AI can offer opportunities, there are potential risks, such as the use of deepfakes in voice recognition. Plan sponsors should consider best practices for cybersecurity when implementing AI tools.
Another key initiative discussed was the creation of a national “lost and found” database for connecting participants with lost retirement accounts. The DOL has a deadline of December 29, 2024, to develop this tool and educate plan sponsors and participants on its use. Plan administrators have been asked to voluntarily provide information to populate the database.
Gomez also touched on the Retirement Security Rule, which clarifies fiduciary obligations for investment professionals dealing with retirement-related investments. Plan sponsors are considered “retirement investors” under this rule, ensuring that investment recommendations are in the best interest of the investor.
Overall, Gomez’s insights at the conference highlighted the importance of prioritizing the needs of all participants in retirement plans, implementing strong cybersecurity measures, and ensuring compliance with regulations like the Retirement Security Rule. Plan sponsors should stay informed and proactive in addressing these critical issues to better serve their participants.
