ERISA section 412 and related regulations (29 C.F.R. 2550.412-1 and 29 C.F.R. Part 2589) generally require that every fiduciary of an employee benefit plan and every person who handles funds or other property of such a plan shall be bonded. ERISA’s bonding requirements are intended to protect employee benefit plans from risk of loss due to fraud or dishonesty on the part of persons who “handle” plan funs or other property. ERISA refers to persons who handle funds or other property of an employee benefit plan as “plan officials.” A plan official must be bonded for at least 10% of the amount of funds he or she handles, subject to a minimum bond amount of $1,000 per plan with respect to which the plan official has handling functions. In most instances, the maximum bond amount that can be required under ERISA with respect to any one plan official is $500,000 per plan. Effective for plan years beginning on or after January 1, 2008, however, the maximum required bond amount is $1,000,000 for plan officials of plans that hold employer securities.
For more detailed information on ERISA Bonds, see the Department of Labor website: http://www.dol.gov/ebsa/regs/fab2008-4.html
Please contact our bonding experts with any questions about ERISA Bonds at 760-747-8175. Nations Surety is able to help you through the maze of government regulations to obtain the bond that you need.