Which type of data is considered sensitive and requires special handling in IPPS-A?

The correct answer is personally identifiable information (PII) because it encompasses any data that can be used to identify an individual, such as names, Social Security numbers, addresses, and other identifying details. PII is categorized as sensitive information due to its potential misuse in identity theft and privacy invasions. Because of these risks, laws such as the Privacy Act and the Federal Information Security Management Act mandate strict protocols for the handling, processing, and storage of PII to ensure individuals' privacy is protected.

In contrast, budgetary information, performance evaluation records, and training completion data, while important, do not carry the same level of sensitivity concerning individual privacy and are less likely to result in personal harm if compromised. Thus, while they may still require some level of safeguarding, they do not necessitate the same rigorous protections as PII.