A majority of U.S. defined contribution pension plan sponsors say they have some (70 per cent) or significant (10 per cent) concerns over data sharing and privacy that impact their adoption of new plan products and features, according to a new survey by the Defined Contribution Institutional Investment Association.
However, the survey — which polled 83 plan sponsors, 24 plan members and six record keepers — found 40 per cent of plan sponsor respondents said they offer emergency savings tools and 33 per cent over student loan debt repayment tools
In addition, nnearly all plan members expressed concerns around employer access to outside financial information and 401(k)s. And all plan sponsors reported an increase in the time and attention paid to data privacy and data sharing issues within their organization during the past 18 months.
Among plan sponsors, the main areas of concern regarding data privacy and data sharing were cybersecurity (93 per cent), data privacy (88 per cent), litigation (41 per cent) and confusing/lack of regulatory guidance (20 per cent).
When asked who they believe should have access to plan data, nearly all respondents indicated the plan sponsor, for plan-related needs (92 per cent), while more than three-quarters said the plan member, for their personal needs (79 per cent); the employer, to evaluate the plan and engage employees (79 per cent); and the record keeper, to run the plan (79 per cent).