Cut Cyber Breaches, Services Fees for Puerto Rico Benefit Plans

Sponsors of retirement plans operating in Puerto Rico, particularly in the wake of an Infosys security breach last November affecting entities throughout the world, have undertaken to evaluate the cybersecurity practices of local service providers that have access to sensitive information of plan participants.

Pursuant to their fiduciary duties under the Employee Retirement Income Security Act of 1974, plan sponsors can and have negotiated to pay lower fees to those providers, such as Puerto Rico (“PR”) trustees, recordkeepers, and, to a lesser extent, paying agents.

The heightened attention to cybersecurity accords with U.S. Department of Labor / Employee Benefits Security ...