COLLECTED WISDOM™ on ERISA Bonding
ERISA bonding requirements are quite voluminous and complex, so it is important that all plan sponsors and fiduciaries understand the requirements.
Summary: Retirement plans need protection from theft, fraud or employee claims of mismanagement. There are two types of protection available: Fidelity Bonds and Fiduciary Insurance. What is the difference and what do you need?
Source: Markley Actuarial, April 2012
Summary: ERISA bonding requirements are quite voluminous and complex, so it is important that all plan sponsors and fiduciaries understand the requirement in order to make sure their current fidelity bond is in compliance with the current rules and regulations.
Source: WithumSmith+Brown 
, March 2011.
Summary: ERISA requires that every fiduciary of, and every person who handles funds or other property of, an employee benefit plan, be bonded. This seems like a simple enough proposition. And yet, although the statute imposing the bond requirement has been in place for many years and the DOL has issued guidance to clarify the requirement, people still get confused regarding its scope and meaning.
Source: Drinker Biddle & Reath LLP, February 2011.
Summary: Plan fiduciaries rarely have an idea of what losses their ERISA bond covers or whether the persons who caused the loss are covered by the terms of the bond. Fiduciaries who take such a hands off approach are making a mistake, because one of the functions of a fiduciary is to be sure that the plan is properly bonded.
Source: Drinker Biddle & Reath LLP, June 2010.
Summary: The IRS has recently announced the results of two of its LESE (Learn, Educate, Self-Correct and Enforce) audit projects. For both projects, the most common violation was the failure to adequately bond the plan as required by ERISA section 412.
Source: Drinker Biddle & Reath LLP, March 2010.
Summary: This article addresses an issue that every plan sponsor should consider whether they have ever been sued or not. Specifically, the author talks about the issue of insurance, and more particularly, the distinction between fidelity bonds and fiduciary liability insurance.
Source: Drinker Biddle & Reath LLP, October 2009.
Summary: This article answers common questions about ERISA's fidelity bonding requirements.
Source: Sidson Consulting , June 2009.
Summary: The Employee Benefits Security Administration (EBSA) has issued Field Assistance Bulletin 2008-04 that provides guidance on fidelity bonding requirements under ERISA.
Source: CCH, December 2008.
401khelpcenter.com, LLC is not the author of the material referenced in this digest unless specifically noted. The material referenced was created, published, maintained, or otherwise posted by institutions or organizations independent of 401khelpcenter.com, LLC. 401khelpcenter.com, LLC does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
