PROTECT YOURSELF AGAINST LIABILITY!
The Employee Retirement Income Security Act (ERISA) of 1974 requires that the Plan Sponsor (normally the Employer), who has the responsibility to direct and control assets, shall be bonded.
Title I of the Employee Retirement Income Security Act (ERISA) generally required plans be audited each year by an independent qualified public accountant (IQPA) as part of the plan’s annual report (Form 5500). The Department of Labor’s regulation at 29 CFR 2520.104-46 establishes conditions for small employee benefit plans (generally those with fewer than 100 participants) to be exempt from the general requirement.
The Department amended the regulation in October 2000 to impose additional conditions for small pension plans to be exempt from the annual audit requirement. The purpose of the amended conditions is to increase the security of assets in small pension plans by improving disclosure of information to participants and beneficiaries and, in certain instances, requiring enhanced fidelity bonds for persons who handle plan funds.
The Department of Labor will enforce compliance of the Fidelity Bonding requirement. Now businesses, even with small plans (those with less than 100 participants), will be faced with penalties if they fail to have a complying Fidelity Bond in place.
The amount of the bond should not be less than 10% of the amount of the qualified plan assets.
The cost of the bond is minimal for the protection provided.
For your convenience we have provided a link to Colonial Bonds and Insurance Company where you are able to find out more about a Fidelity Bond and the cost. You are also able to complete the whole application process online if you desire.
Find out the cost now by clicking the link below (which will have you provide general information to obtain a quote):
Contact your insurance agent for a quote to meet these important requirements.
Click the link below for the Department of Labor FAQ’s relating to the Small Pension Plan Audit Waiver Regulation and bonding requirements: