What is an ERISA bond and how do we obtain?
Answer. Article 412 of the Employee Retirement Income Security Act requires every fiduciary of an employee benefit plan and every person who handles funds or other property of such a plan (a “plan official”) secure an ERISA Fidelity Bond. The bond protects employee benefit plans against loss caused by acts of fraud or dishonesty, either directly or through connivance of others. The amount of such bond at the beginning of each plan year must be at least 10% of the amount of funds handled. In no event can the bond be less than $1,000 nor more than $500,000. Any bond shall be in a form or of a type approved by the Secretary of Labor, including individual bonds or schedule or blanket forms of bonds that cover a group or class. It is unlawful for any plan official to receive, handle, disburse, or otherwise exercise custody or control of any of the funds or other property of any employee benefit plan, without being bonded. It is also unlawful for any plan official to permit any other plan of
