ERISA Bonds
ERISA requires that each fiduciary of employee benefit plan be bonded. Each ERISA (Fidelity Bond) must meet the following criteria:
- The bond must be equal to 10 percent of the plans assets at the start of the plans fiscal year not less than $1,000 and not greater than $500,000.
- If more than one plan is covered under a single bond, the bond must allow for recovery by each plan in the amount that would be required if an individual bond was purchased.
- The bond must cover the plan against loss of assets due to fraud or dishonesty on the part of a plan administrator, trustee, officer, or employee.
- The bond must provide coverage from first dollar. No deductibles are permitted
Plan ERISA bonds are relativity inexpensive and may be covered by a business employee dishonesty policy. All bonds should be compliant with ERISA regulations regarding coverage intent.
Applications & Forms:
