Plans containing non-qualifying assets must be covered by an ERISA fidelity bond that meets the requirements of section 412 of ERISA however there is a difference in the bond amount required under the Federal Code. Instead of the ten percent (10%) of asset value fidelity bond requirement, the bond must be equal to one hundred percent (100%) of the value the non-qualifying plan assets. Assets not held by formal financial institutions such as banks, insurance companies, registered brokers, mutual fund companies, etc. are considered “non-qualified”. That portion of a plan must follow the “1:1” formula. Examples of non qualifying assets are real estate holdings, deeds and deeds of trust, limited partnerships, unsecured loans and private receivables.
Many surety companies are reluctant to issue ERISA bonds for this type of plan. The sureties that do will limit bonding approval to only those plans with a very small percentage of non-qualifying assets. The nation’s leader in surety, Surety One, Inc., offers special ERISA fidelity bond programs which can accommodate ANY plan structure. ERISA bonds for labor unions, multi-employer plans, non-qualified assets, and employee stock ownership plans can ALL obtain bonding from us! An ERISA bond with non qualifying assets is easy. No one is turned away!
Surety One, Inc. is a specialist in surety and fidelity bond underwriting. Licensed nationwide, in Puerto Rico, Canada and U.S. Virgin Islands, we are one of the largest producers of ERISA fidelity bonds. Our class-specific knowledge, decades of experience with ERISA bonds and our broad underwriting authorities allow us to meet ERISA bond requirements immediately. We bond plans with non-qualifying assets, ESOPs, KSOPs, labor union, multiple employer and multi-employer plans. For more information about ERISA bond for non-qualifying assets or any other bonding need, visit us at http://www.ERISA-Bonds.com, call (800) 373-2804 or email Underwriting@SuretyOne.com.
