Who needs ERISA Bonds?
This bond is for people who handle money or property for an employee benefit plan. It commonly applies to those who manage or administer retirement and benefit plans such as 401(k) plans, pension funds, deferred-compensation plans, and profit-sharing plans. If you have fiduciary responsibilities for a plan, including employers responsible for managing or administering a retirement plan, you may be required to carry an ERISA bond.
The purpose of the bond is to protect the plan and its participants if someone who handles plan funds commits fraud or other dishonest acts. If a covered dishonest act causes a financial loss to the plan, a claim can be made to help recover damages, and the person responsible for the loss is ultimately expected to repay any amounts paid on a valid claim.
How much do ERISA Bonds cost?
The price depends mainly on the required bond amount and the type of assets held in the plan. In general, the required bond amount is tied to the size of the plan’s assets, and plans with certain types of assets may require a higher bond amount.
Premiums are typically relatively low for many smaller plans. Some ERISA bonds may be available without a credit check, which can help keep the process simple for many applicants.
BOSS Bonds has upfront pricing for Qualified ERISA Bonds:
How do I get an ERISA Bond?
Start by confirming the bond amount you need based on your plan’s assets and the types of assets held under the plan. Once you know the required amount, you can apply for an ERISA bond by providing basic information about the plan and the party or parties who will be covered for handling plan funds.
After the application is reviewed, you’ll receive a quote if the bond can be issued. Once payment is completed, the bond can be issued for your records and any compliance needs tied to the plan.
Can I get an ERISA Bond with bad credit?
Many ERISA bonds do not require a credit check, which can make them accessible even if your credit is less than perfect. If a credit review is required for your situation, credit may affect pricing or eligibility, but it does not automatically mean you can’t get bonded.
How fast can I get ERISA Bonds?
Timing depends on how quickly the required plan details are provided and whether any extra review is needed. In many cases, ERISA bonds can be issued quickly once the application information is complete and payment is made.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
