HANYS Benefit Services

Cryptocurrency’s use and popularity have recently skyrocketed. What was once considered a fringe technology has since become mainstream. According to a recent Pew Research Center study, 86% of Americans are at least somewhat aware of cryptocurrency . Of course, money has followed that notoriety and the total global market capitalization of all cryptocurrencies exceeded $1.28 trillion as of May 2022 . It stands to reason that the retirement industry, particularly defined contribution plans, would attempt to take advantage of the buzz surrounding digital assets. Fidelity recently announced its intention to be first in line by allowing 401(k) plan sponsors to offer cryptocurrency in its core 401(k) investment lineups. Fidelity made its announcement on April 26, 2022, only a little more than a month following the DOL’s publication of a Compliance Assistance Release on the same topic. In that release, the DOL directs fiduciaries to “exercise extreme care” in considering a cryptocurre

ERISA requires a retirement plan’s assets to be held in a trust in order to ensure that the assets are used solely to benefit the plan’s participants and beneficiaries. The employer sponsoring the retirement plan is responsible for timely depositing participants’ contributions into the plan’s trust. The Department of Labor (DOL) requires employers to make these deposits as soon as the amounts can reasonably be segregated from the employer’s general assets. In addition, the DOL has established a safe harbor deadline for employers to deposit participant contributions into small retirement plans. An employer that sponsors a small plan (one with fewer than 100 participants at the beginning of the plan year) has the option of using this safe harbor for meeting the deadline for depositing employee contributions into the plan. To take advantage of the safe harbor, employers must deposit employee contributions (including plan loan repayments) within seven business days of receiving or wi

Cybercrime and Benefits Plans According to recent estimates from the University of Maryland, a cyberattack occurs every 39 seconds. Data breaches and cyberattacks are daily headlines—and employee benefits plans are no exception to that threat. In fact, employee benefits plans are even more vulnerable as the coronavirus pandemic continues; organizations and benefits providers are relying heavily on electronic access, ultimately creating new vulnerabilities. Some examples of cyberthreats include phishing, malware and ransomware attacks. Virtually any type of employee benefits plan is vulnerable to hackers. These plans can be exposed to risks relating to privacy, security and fraud. Sensitive information contained in benefits plans is valuable to cybercriminals. Lost or stolen mobile devices, laptops and flash drives that hold personal information are additional tangible threats to benefits plans. These situations are especially concerning now that more employees are working from home. Gi