ERISA Bond

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Florida ERISA Bond/Fidelity Bond

The Employee Retirement Income Security Act of 1974 (ERISA) requires that every fiduciary of an employee benefit plan and every person who handles funds or other property of such a plan, be bonded. An ERISA Bond (also called a fidelity bond) protects the assets in retirement and profit sharing plans. Funds handled by a person whose duties or activities are such that there is a risk that such funds could be lost in the event of fraud or dishonesty.

The amount of the bond must be fixed at the beginning of each Plan Year in an amount that is not less than 10% of the amount of funds in the plan. The amount of the bond may not be less than $1,000, and need not be greater than $500,000. A blanket bond may be purchased that covers all persons who handle funds. The Pension Protection Act of 2006 increased the maximum bond amount to $1 million for a plan that holds employer securities, effective for plan years beginning in 2008 or later. The 10% rule would still apply, so the amount of the bond would be 10% or $1 million (whichever is less).

Fill out and submit the contact form on this page, or call Oros Risk Solutions today at 1-866-596-3859 to arrange to speak with one of our knowledgeable specialists about ERISA Bonds.