Missouri ERISA / Pension Plan Bond (3 Year)
Missouri ERISA / Pension Plan Bond (3 Year)
General Information
ERISA bonds, short for Employee Retirement Income Security Act bonds, are a type of fidelity bond required by federal law to protect the assets in employer-sponsored benefit plans, like retirement or health plans. These bonds help ensure that those handling these assets—plan fiduciaries and individuals responsible for plan funds—act in the plan’s best interest and do not misuse the assets.
Why ERISA Bonds Are Required
1) Protection Against Fraud and Dishonesty: ERISA bonds protect plan participants by covering losses that result from fraud or dishonesty by those responsible for managing the plan’s assets. This includes actions like theft, embezzlement, forgery, or misappropriation of funds.
2) Compliance with Federal Law: The Employee Retirement Income Security Act (ERISA) requires anyone who "handles" the funds or property of a plan to be bonded. This requirement is meant to maintain fiduciary responsibility and safeguard employee benefits, promoting confidence in the integrity of retirement and benefit plans.
3) Coverage of Plan Assets: ERISA requires the bond amount to be at least 10% of the plan assets being handled, with a minimum coverage of $1,000 and a maximum requirement of $500,000 (or $1,000,000 if the plan holds employer securities). This ensures that there’s enough protection to cover the potential risks involved.
By mandating ERISA bonds, the government aims to protect employees’ retirement security and reduce the financial risks that plan participants and beneficiaries might face if plan fiduciaries fail to uphold their responsibilities.
We write single employer ERISA bonds up to $500,000 INSTANTLY without a credit check!