ERISA Surety Bond

The ERISA surety bond is designed to protect the plan and money of pension plans and/or profit sharing programs that are managed by appointed employees that are associated with that company’s plan. Those appointed to oversee and manage these plans are called fiduciaries. To protect these plans and funds from fraud and dishonesty the fiduciary or fiduciaries need to be bonded with an ERISA surety bond. Sometimes ERISA bonds are referred to as a pension trust surety bond.

Why do you need an ERISA bond?

The Employee Retirement and Income Security Act of 1974 mandates that any money in a pension or profit sharing plan must be protected under a fidelity bond that covers at minimum 10% of the amount of qualified assets as well as 100% of non-qualified assets.

Qualifying assets include items that are held by a financial institution such as a bank, insurance company, mutual funds, etc.

Non-qualifying assets are those not held by any financial institution including tangibles such as artwork, collectibles, and real estate.

ERISA surety bonds are not a requirement for SEC-registered brokers and dealers that are subject to fidelity bond mandates of their own regulatory agency or organization.

How do you get an ERISA bond?

ERISA surety bonds up to $500,000 are freely written and can be issued in most instances the same day of application. If you need an ERISA bond over $500,000 we will need a more thorough application and it will be issued after an underwriter review.

To get an ERISA surety bond simply fill out the form to your right or call us toll-free at (800) 308-4358 to speak to one of our surety bond specialists.

How much does this bond cost?

ERISA bonds are very affordable for the amount of protection you receive. Assuming 5 or fewer fiduciaries, no losses, and no non-qualifying assets a $500,000 ERISA surety bond can be as little as $155.00 a year.