To comply with ERISA, every fiduciary of an employee benefit plan and every individual who handles plan funds must be bonded. Being bonded protects plan assets against potential loss due to fraudulent or dishonest activity.
The amount of the Fidelity Bond should be:
- 10% of the highest amount of funds handled in the preceding plan year
- Minimum Bond of $1,000
- Maximum Bond of $500,000
ERISA/Fidelity Bond and Fiduciary Liability Insurance can be purchased through Colony Surety Company, a licensed insurance company registered with the Department of Treasury’s Listing of Approved Sureties (Dept Circular 570) and a leading provider of ERISA/Fidelity Bonds and Fiduciary Liability Insurance.
Please feel free to contact your employee benefits administrator with any questions.
Colonial Surety Company is an insurance company licensed in all states and territories, and is a provider of ERISA/Fidelity Bonds, Errors and Omissions Insurance and Fiduciary Liability Insurance. You are solely responsible for any and all agreements entered into and products purchased through Colonial Surety Company. The purpose of this notice is provided for your convenience, and is not intended to be, nor should be construed as legal, tax, investment or other financial advice from CDS Administrative Services, LLC.
