Are your company retirement plan managers bonded? Federal ERISA section 412 and related regulations (29 C.F.R. § 2550.412-1 and 29 C.F.R. Part 2580) require that every fiduciary of an employee benefit plan and every person who handles funds or other property of such a plan, be bonded. ERISA’s fidelity 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 funds or other property. 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. Surety One is a one of the largest underwriters of ERISA fidelity bonds. Read more about our ERISA program here.
