Gramm-Leach-Bliley application to retirement plans

[Guest Darrell]

Does anyone believe that retirement plans and/or administrators of retirement plans are subject to the Gramm-Leach-Bliley notification requirements?

[Guest hank]

I've raised the issue here before:

http://www.benefitslink.com/mbmirror/9617.html

Since then, we've heard (again, informally)that the FTC has been satisfied that plan loans are substantively different from normal consumer loans and is not interested in making plans which allow participants to "borrow" their own money comply with the privacy notice requirements of GLB.

[JWK]

I hope this analysis is correct, and that formal guidance will be forthcoming. Meanwhile, how have you responded to participant requests to "opt-out"? Or has this not come up for you?

(Notwithstanding the FTC regulations, a retirement plan looks to me like it may be within the definition of a "financial institution.")