An Insurance News Net, Inc. Feature
SAN JUAN, Puerto Rico, Jan. 16, 2024 /PRNewswire/ — Pursuant to the Employee Retirement Income Security Act of 1974 (ERISA), every retirement plan must comply with the Federal Code and be insured by an ERISA fidelity bond. The purpose of the fidelity bond is to protect plan assets from fraud or other dishonest acts committed by the plan’s trustees. Carrying an ERISA bond is mandatory.
Surety One, Inc. offers the ERISA fidelity bond required by federal law. Per Surety One, Inc.’s underwriting supervisor, “If you are a sponsor or manage any type of regulated plan you must have this fidelity bond in place. There is a lot of non-compliance however, being unaware of the Federal Code requirement will not excused a plan fiduciary.”
There have also been some changes to the long-term part-time employee rules (“LTPTE Rules”) for participants in a Solo 401(K) plan. If a LTPTE is eligible to participate in a Solo 401(k) plan, then the plan is no longer exempt from ERISA and thus falls within the ERISA fidelity bond requirement.
Per Surety One, Inc., “We provide a six-line application with a built-in payment form. Upon receipt the fidelity bond is in your hands in minutes.” ERISA fidelity bonds are generally low risk obligations. Difficulties arise only where a plan contains significant balances of non-qualified assets, i.e., assets not issued by financial institutions. Retro-dating of bonds is also problematic however Surety One, Inc. offers special programs for “non-standard” bonding needs.
Surety One, Inc. is an international insurance intermediary domiciled in Puerto Rico, operating throughout the United States, Canada and U.S. Virgin Islands. All ERISA fidelity bonds issued by Surety One, Inc. are supported by highly rated surety insurance carriers and active on the U.S. Treasury’s circular (T-List) of insurers qualified to guarantee federal obligations. The ERISA bond program offers coverage for plans made up of employer issued securities (ESOPs), labor unions, multi-employer structures and non-qualified assets as well as standard plans. For more information on ERISA fidelity bonds or to process an online application visit https://ERISA-Bonds.com. For more information call (800) 373-2804 or email
SOURCE Surety One, Inc.