FIDELITY BONDS FOR YOUR RETIREMENT PLAN
Under Department of Labor (DOL) regulations, your retirement plan will need to maintain an
ERISA Fidelity Bond. A fidelity bond protects the assets in the plan from misuse or
misappropriation by the plan fiduciaries. Plan fiduciaries include the plan trustees and any person
who has control over the management of the plan and its assets.
REQUIRED ERISA FIDELITY BOND AMOUNT
At the very least, the bond must be equal to 10% of the value of the total plan assets, with a
minimum bond value of $1,000 and a maximum bond value of $500,000. (If you have employer
securities then the bond amount needs to be 10% of assets not to exceed $1,000,000) For the
first year, the bond amount will be based on the estimated amount of assets that will be handled
by the plan for the year.
WHY DO I NEED AN ERISA FIDELITY BOND?
There are serious consequences for not purchasing and maintaining a sufficient ERISA fidelity
bond. Not having this required coverage can be a red flag to the Department of Labor that they
need to take a closer look at the plan. You are not only at risk for a DOL audit, but there are
citations associated with not having this required coverage.
HOW DO I OBTAIN AN ERISA FIDELITY BOND?
You have multiple options when choosing an ERISA fidelity bond and below are just a few:
FIRST, If you have your own Insurance carrier and prefer to go through them, you may inquire
with your current agent/broker about getting your plan bonded.
ALSO, As a convenience to you, Plan Design Consultants, Inc is partnered with Colonial Surety
Company, a national online insurance company that is U.S. Treasury listed and licensed in all
states and territories. As experts in all aspects of ERISA regulations, Colonial Surety Company will
ensure that you are properly bonded and that your bond is renewed prior to expiration so that
your plan remains in compliance. You can easily obtain an ERISA Fidelity Bond for your plan on
Colonial Surety’s secure website by clicking on the below link:
You may contact an ERISA Bond Expert directly for assistance:
(Office) (888) 383-3313
**COLONIAL WILL GUARANTEE BEST PRICING**
FINALLY, here is a link to the U.S. Department of the Treasury list of certified providers: https://www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570_a-z.htm