ERISA bond requirements
Trustees of a retirement program are considered "Fiduciaries" and, as such, must be bonded.
The amount of the ERISA bond required must be a minimum of at least 10% of the plan assets as of the beginning of the plan year. If the plan contains any "non-qualifying" assets, the bond must cover 100% of the amount of the "non-qualifying" assets, even if they exceed the 10% minimum.
"Qualifying Plan Assets" are any of the following:
- Assets held by banks, insurance companies, broker-dealers or organizations authorized to hold IRA's
- Mutual funds
- Investment/Annuity contracts issued by an insurance company
- Qualifying employer securities
- Participant loans that meet the prohibited transaction requirements of ERISA
If any of the assets you hold in your retirement plan are not described above, they are "non-qualifying" assets.
How to secure a bond
1. If your plan contains 100% "qualifying" plan assets and you would like to secure a bond in an amount less than $500,000, please complete the ERISA/Employee Benefit Plan Application and forward to the address provided on page 2 of the Application for ERISA bonds. If you need assistance, please contact our office.
2. If your plan contains "non-qualifying" assets and you would like to secure a bond, please click the link below for a quote. If you need assistance, please contact our office.