SPRINGFIELD — State Senator Robert Martwick has passed a measure that would prohibit companies from using personal data gathered from retirement plan participants to sell products and services that are not related to the plan.
“When an employee deposits their money in a retirement savings account, they trust the people handling their money are working in their best interest,” said Martwick (D-Chicago). “As we have seen throughout history, unfortunately, this is not always the case.”
The measure enacts a series of strict conflict of interest provisions. Included in the measure are rules regarding companies who perform contracted recordkeeping services for public employee deferred compensation plans.
Current law does not prevent the recordkeeping companies from making use of the personal data provided to them to solicit plan holders. Martwick’s measure would ensure that they could no longer act outside the plan holder’s best interest, and solicit them with services they do not need.
“Account holders’ data should be kept safe from being used for financial product marketing and predatory practices from large financial corporations,” Martwick said.
Senate Bill 1646 passed the Senate Thursday sand now goes to the House for further consideration.
