ERISA Fidelity Bond Providers

Find ERISA fidelity bond providers to protect your retirement plan.

Browse 15 providers in this category.

Providers

Understanding ERISA Bonds for Your Retirement Plan

If you are setting up or managing a retirement plan for your employees, such as a 401(k), you are likely familiar with the requirements set forth by the Employee Retirement Income Security Act (ERISA). One crucial requirement is obtaining an ERISA bond, often referred to as an ERISA fidelity bond. This bond is a type of insurance designed specifically to protect the plan’s assets and participants from losses due to fraud or dishonesty by those who handle plan funds.

Who Needs an ERISA Bond?

ERISA requires that every person who handles plan funds must be covered by a fidelity bond, unless an exemption applies. The goal is to safeguard the financial well-being of the plan and its participants. Individuals who typically require bonding include:

  • Plan Fiduciaries
  • Administrators and Trustees
  • Individuals with authority to sign checks or other negotiable instruments
  • Employees with supervisory or decision-making responsibility over plan assets

Key Requirements for ERISA Fidelity Bonds

Understanding the proper coverage amount is essential for compliance. According to ERISA guidelines, the bond must cover at least 10% of the amount of funds handled in the preceding year. There are specific minimum and maximum coverage limits you must adhere to:

  • The minimum bond amount is $1,000.
  • The maximum required bond amount is generally $500,000 per plan official per plan.
  • If the plan holds employer securities, the maximum required bond amount increases to $1,000,000.

It is important to note that the bond must be obtained from a surety or reinsurer that is named on the Department of the Treasury's Listing of Approved Sureties (Circular 570).

ERISA Bond vs. Fiduciary Liability Insurance

While both are important for protecting your retirement plan, an ERISA bond is not the same as Fiduciary Liability Insurance. An ERISA bond covers the plan against losses from dishonest acts by plan officials. Fiduciary Liability Insurance, on the other hand, protects the fiduciaries themselves against claims of breaches of fiduciary duty, such as administrative errors or imprudent investment decisions. Both forms of protection are recommended for a robust retirement plan defense strategy.

Choosing the Right Retirement Plan Provider

When searching for the best retirement plan provider, ensure they understand and comply with all ERISA regulations, including bonding requirements. A provider who specializes in ERISA plans can help you navigate complex rules and maintain compliance, protecting your business and your employees’ retirement savings.

Properly securing your plan with an ERISA bond is a fundamental step toward meeting your fiduciary responsibilities and protecting your employees’ financial future. Partner with a trusted provider today to ensure your plan is fully compliant.