Empower’s New 401(k) Cybersecurity Guarantee a Sign of the Times

Post on June 26, 2018

Empower Retirement, one of the largest retirement-plan record keepers, has begun offering participants a backstop against financial losses resulting from cyber attacks — both a sign of the mounting threat digital crime poses in the 401(k) market and the shifting competitive landscape for service providers.

Other large providers, such as Charles Schwab, Wells Fargo and Fidelity Investments, the largest retirement record keeper, have added similar security guarantees, said Andrew Way, the retirement manager at Corporate Insight.

But, the fact that Empower — the second-largest record keeper by participant count — launched a measure to protect participants from cyber theft is an important indicator of what clients and advisers are coming to expect from service providers, Mr. Way and other analysts said.

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