Hacking and encryption breaking are two totally different things. Hackers expolit weaknesses in networks and systems to gain access. Systems get hacked all of the time. Government systems being hacked is no surprise at all.
Encryption is a method of scrambeling the data so that it is totally meaningless unless you have the key to decrypt. I implemented AES 256bit encryption on all of our data where I work. . One statistic that I read was with all of the combined computing power in the entire world it would still take over 10,000 years to break it. To my knowledge it has never been broken. Weaker encryption methods have been broken with enough computing power and time. This is no simple task compared to hacking.
The Sarbanes–Oxley Act of 2002 mandates that all public companies must report if any backup tape is lost or stollen. However, if the data is encrypted, no reporting is required. Don't get your hopes up people. The reason companies encrypt data is so it can't ever be read by someone without the encryption key.