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ERISA Fidelity Bond

  • Quick Online Application for $500k coverage or less. Takes only a few minutes to complete your bond request.
  • Call Us for coverage amounts greater than $500k.
  • A-Rated Treasury listed Surety
  • Highly Competitive Rates

Your Guide to ERISA Bonds

Many Americans depend on employee retirement plans like 401ks to help them secure their financial future throughout their golden years. Something so important to so many people needs to be carefully managed. And when managers fail to perform their duties in a lawful or ethical way, they need to be held accountable. That's where ERISA bonds come in. These types of bonds help protect anyone who depends on an employee retirement plan. Everyone involved should understand how an ERISA fidelity bond works. Here's your guide.

What is ERISA?

The Employee Retirement Income Security Act took effect in 1974 and created standards for how the private sector administers health and retirement plans. One requirement it created was making it mandatory for anyone with fiduciary responsibilities for a retirement savings plan to obtain a fidelity bond, known as an ERISA bond.

What is an ERISA Bond?

This type of fidelity bond is a type of insurance that protects employee retirement plans against illegal acts. Specifically, the bond protects against activities such as fraud, theft or embezzlement by plan administrators. Should any of these acts happen, participants can file a claim for damages against the ERISA bond. The surety agency that backs the bond guarantees payment for all valid claims up to the coverage amount.

What is the Purpose of an ERISA Bond?

Anyone with power over so many people's finances must be held to the highest standards. The ERISA bond requirement protects the plan from those who would breach those high standards. The bond guarantees settlements for valid claims against the bond providing a way to recoup the plan's financial losses. ERISA bonds are meant to expedite the process and ensure the outcome.

Who Needs an ERISA Bond?

Most but not all retirement plans fall under ERISA oversight. Exemptions include government pensions, plans established by churches, and plans managed outside the US. For many other plans, however, anyone involved in a fiduciary or administrative role will need an ERISA fidelity bond. That includes:

  • Dispensing funds to beneficiaries
  • Working with assets that belong to the plan
  • Signing checks on behalf of the plan
  • Transferring plan funds

Anyone who requires an ERISA bond must obtain one worth at least 10% of the plan assets under management. So for a $500,000 plan, someone would need a $50,000 bond. When bond requirements apply, it's important to fulfill them sooner rather than later. Rely on Viking Bond Service to answer questions and supply bond quotes.

How to Get an ERISA Bond

The process to obtain a bond works like this:

  • For bonds valued at or less than $500,000 dollars, Bond seekers provide the required bond amount and complete a standard bond application.
  • For larger bonds, call us or complete the contact form so we may determine the best placement for your specific request.
  • The surety will supply a quote for the bond premium based on the application.
  • After premium payment, the bondholder receives a document proving they've met the ERISA bond requirement.

How Much Does an ERISA Bond Cost?

Bond costs depend primarily on the size of the bond. Costs are typically minimal for these types of bonds. A $500,000 ERISA bond can be obtained for less that $200. To quickly determine the cost of your request, complete the easy online application and a price will be quoted immediately.

How to Manage an ERISA Bond

Someone must obtain an ERISA bond and then keep it active and in good standing for as long as they manage a retirement plan. Failure to maintain bond coverage makes it illegal to continue with management. Bondholders will need to renew their bond coverage annually, including updating the coverage amount based on changes to the plan's assets. Renewal costs will reflect changes in the amount of managed assets if the required bond amount was not previously already maxed.

Why You Should Get Your ERISA Bond From Viking Bond Service

Anyone who needs an ERISA bond wants two things in a bond partner. First, someone who makes the process simple, straightforward, and streamlined. Second, someone that goes above and beyond on behalf of bondholders. Viking Bond Service checks both those boxes. As a nationwide surety with years of industry experience, including a deep background in ERISA bonds, we can be the bond partner everyone wishes they had.

Request a Quote Today!

Get a quote for an ERISA bond right away by completing an online application any time, day or night. The team at Viking Bond Service is also happy to answer questions and provide in-depth information. Don't hesitate to call us at 1-888-278-7389 or contact us in writing.

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