What are the ERISA fidelity bond requirements?
With some exceptions, every person who is a fiduciary or who has access to plan assets must be bonded by an ERISA fidelity bond. The bond is intended to protect the plan assets from losses resulting from fraud, theft, or dishonesty on the part of the persons bonded, not from market losses. Unless additional coverage is needed for “non-qualifying” plan assets, the minimum amount of the bond is the greater of $1,000 or 10% of the plan assets at the beginning of the plan year, and the maximum required bond is $500,000. The assets of more than one plan of the employer may be added together to determine the amount of required coverage. If the trust holds “non-qualifying” plan assets (i.e. investments not held by a bank or similar financial institution, an insurance company, a registered broker-dealer or other organization authorized to act as trustee for individual retirement accounts), a bond covering the persons handling such assets must be acquired in order for a plan to be exempt from t
