Pension Trust Surety Bond

Pension trust surety bonds are mandated to help protect the pension and/or profit sharing programs for your company. When you have a pension program that is managed and overseen by one or more employees of your company you will have to obtain a pension trust surety bond to protect those assets. The bond will cover any fraud or dishonesty committed by an employee (fiduciary) that manages the assets in the fund. Pension trust bonds are often referred to as a ERISA surety bond. ERISA stands for Employee Retirement and Income Security Act.

Why do you need a Pension Trust bond?

The Pension Reform Act of 1974 directs companies that have pension or profit sharing plans to obtain a pension trust fidelity bond for at least 10% of the amount of qualified funds that are under management. It goes on to state that it must also cover 100% of non-qualified funds. To legally operate one of these types of plans you must get a pension trust bond to cover all fiduciaries.

How do you get a Pension Trust bond?

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

To get pension trust 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?

Pension trust surety 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.