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COMMERCIAL CRIME | ERISA Fidelity Bonds
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THE ERISA BONDING REQUIREMENT
The Employee Retirement Income Security Act of 1974 (ERISA) mandates that:
"Every fiduciary of an employee benefit plan and every person who handles funds or other property of such plan shall be bonded." (ERISA, Sec.412).
Under ERISA, a "fiduciary" is defined as a person who "(i) exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets, (ii) renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or (iii) has any discretionary authority or discretionary responsibility in the administration of such plan…" (ERISA, Sec. 412, U.S. Code 1002(21)(A))
There is no additional premium for the ERISA Fidelity Bond feature that helps ensure limit compliance for qualified plan assets.
For added protection that helps ensure that a plan always has adequate insurance,
The Hartford's ERISA Fidelity Bond automatically covers increases in plan assets
to the required amount necessary under ERISA law. With this feature there is no
need to actually increase the limit of insurance on the policy. As the qualified plan assets grow, the limit is automatically increased to 10% of the plan assets up to a maximum of $500,000. There is no additional premium charged for this protection.
» Contact our Bond Center for more information
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