ERISA Fidelity Bonds
Place the ERISA bond your client's retirement plan needs through Baker's wholesale surety desk — federal fidelity coverage for 401(k) and pension plans.
An ERISA bond is the fidelity coverage that federal law requires for anyone who handles the funds of an employee retirement plan, such as a 401(k) or pension.
What it does
It protects the plan itself from loss caused by fraud or dishonesty by the people who handle its money.
- ✓Required by the Employee Retirement Income Security Act (ERISA)
- ✓Covers the plan against theft, embezzlement, and forgery by plan officials
- •The plan is the insured — not the employer or the participants
Who needs it
Every plan fiduciary and anyone else who handles plan funds must be bonded.
- •The bond must be at least 10% of the funds handled, up to $500,000
- •That cap rises to $1,000,000 if the plan holds employer securities
- •These are the statutory minimums set by law, not a price
How to place it through Baker
Send the plan name, the plan asset amount, and whether the plan holds employer securities.
- →Start a bond quote, or send the application link to your client
** Terms used here are a summary only. Always refer to the bond form and the obligee's requirements.