Generic pricing
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Platinum Bonds Insurance Agency
Research before you apply.ERISA Fidelity Bond
ERISA Dishonesty Bond
ERISA Pension/Retirement Plans
Overview
What it is.
ERISA Pension/Retirement Plans
Who usually needs it
Plan administrators, trustees, employees with access to plan assets, and any individual who handles employee benefit plan funds or property (including 401(k)s, pension plans, and profit-sharing plans) must obtain this bond to protect employee benefit plans from losses caused by fraud or dishonesty as required under ERISA Section 412.
Pricing & timing
What to expect.
Typical timeframe
Many license bonds are approved the same day. Court, probate, and larger contract bonds can take a few business days when underwriting needs more information.
Details
Bond details.
FAQ
Common questions.
What does an ERISA Fidelity Bond protect against?
An ERISA Fidelity Bond protects employee benefit plans from losses caused by fraud or dishonesty by plan officials who handle plan funds. This includes acts like theft, embezzlement, forgery, or misappropriation of plan assets. The bond does NOT cover investment losses, poor financial decisions, or general fiduciary liability - it specifically covers fraud and dishonest acts by bonded individuals.
Can fiduciary liability insurance replace the ERISA fidelity bond requirement?
No. Fiduciary liability insurance does not substitute for an ERISA fidelity bond. The bond specifically protects the plan from fraud, theft, embezzlement, or dishonest acts by those handling plan funds. The bond must come from a DOL-approved surety listed on the U.S. Treasury Department's listing, and the plan or related party cannot have control over the surety.
What does an ERISA Fidelity Bond cover and how is it different from fiduciary liability insurance?
An ERISA Fidelity Bond protects the employee benefit plan from losses due to fraud, theft, embezzlement, or dishonest acts by plan officials handling funds. The bond covers losses from the first dollar with no deductible. This is different from fiduciary liability insurance, which covers mismanagement, errors in judgment, or breaches of fiduciary duty—but not fraud or dishonesty. Both types of protection serve different purposes and many plans carry both.
Who must be bonded under ERISA Section 412?
Every person who handles, receives, disburses, or exercises custody or control over employee benefit plan funds or property must be bonded. This includes plan administrators, trustees, officers, employees, and certain service providers with access to plan assets. Fiduciaries who do not actually handle funds are exempt. Common exemptions also include church plans, government plans, regulated financial institutions (banks, brokers), and certain small plans under $1 million in assets.
Who exactly needs to be bonded under ERISA?
Every person who handles plan funds or property must be bonded. This includes plan fiduciaries, trustees, administrators, and anyone with authority to transfer or disburse funds, sign checks, or physically handle cash/checks. Exemptions apply only to certain banks, insurance companies, registered broker-dealers, or individuals who never handle plan assets.
Who is considered to be "handling" plan funds under ERISA bonding requirements?
Under ERISA Section 412, "handling" includes anyone with physical contact with cash, checks, or other plan property, as well as anyone with authority to transfer or disburse plan funds, sign checks, or negotiate plan property. This typically includes plan fiduciaries, trustees, administrators, officers, employees, and anyone with discretionary control over plan assets. If you have access to move money or authorize transactions, you likely need to be bonded.
How much ERISA Fidelity Bond coverage do I need?
You need coverage equal to at least 10% of the plan funds you handled during the preceding plan year. The minimum is $1,000 per official per plan, and the maximum is $500,000 per official per plan (or $1,000,000 if the plan holds employer securities). For example, if you handled $1 million in plan funds last year, you need at least $100,000 in coverage.
What is the minimum and maximum ERISA bond coverage required?
The ERISA fidelity bond must cover at least 10% of the plan funds handled, with a minimum of $1,000 per plan. The typical maximum is $500,000 per plan official, or $1 million for plans holding employer securities. For example, if you handle $1 million in plan assets, you need at least $100,000 in bond coverage.
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Next step
Ready to move forward?
Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.