The lawsuit says the trustee failed to prevent a fraudulent distribution from a participant's account and is failing to take responsibility.
The plaintiff filed a first amended complaint on October 23, trying to correct pleading errors after Abbott was dismissed from the lawsuit.
A federal judge found Abbott defendants were not fiduciaries with regard to the alleged acts, but claims against Abbott's retirement plan recordkeeper were allowed to stand.
Retirement plan advisers were given ideas to consider and actions to take in response to new legislation, regulation and litigation.
Situations like this emphasize the clear and present need for retirement plans to implement effective cybersecurity policies.
A federal judge previously moved forward ERISA claims against retirement plan providers and has recently allowed for a counterclaim by the providers against the plan sponsor.
According to the complaint, an unknown person or persons stole a participant’s retirement savings by withdrawing a total of $99,000 in three separate unauthorized distributions from her account in the plan.
A retirement plan participant who had $99,000 stolen from her account has sued the plan sponsor and plan providers.
The Cybersecurity Risk Management Program develops and manages an ongoing cybersecurity program for retirement plans.
The SPARK Institute's Data Security Oversight Board (DSOB) worked with definitional examples from national cyber standards, international regulations, state privacy laws, and client contracts and gathered insights from the plan consultant representatives on the board.
In a letter to the Government Accountability Office (GAO), lawmakers said retirement savings are "a tempting target for criminals who could hack into plans and individuals’ accounts to access information, commit identity fraud, and steal retirement savers’ nest eggs."
The "What's Now and What's Next" report focuses on eight specific risk areas that companies may face in 2019.
The council is asking the DOL to require sponsors to be familiar with the various security frameworks to protect retirement plan data.