ERISA Bond

Why you need an ERISA Fidelity Bond

When filing your annual 5500 form or 401(k) plan, your CPA or Pension Administrator may request you secure an ERISA Fidelity Bond. The Employee Retirement Income Security Act (ERISA) of 1974 went into effect to prevent funds of pension and employee benefit plans from suffering losses due to theft or fraud by the plan administrator.

Get your ERISA Bond in under 3 minutes

If your Personal Administrator is Benetrends, please complete and submit our Benetrends ERISA Fidelity Bond Application here.

The U.S. Department of Labor enforces the ERISA Fidelity Bond requirement for plan administrators engaging in the following acts.

  • Disburse, negotiate or move the plan funds

  • Negotiate or implement documents for the plan

  • Physically handle money, checks or other assets belonging to the plan

See what our clients say about us on Google:

Easiest system to use and, by far, the fastest company with providing E&O and Surety bond insurance. HIGHLY recommend!
Mortgage H.
Mortgage H.
20:51 02 Mar 22
Surety Solutions goes above and beyond their duty to make their customer feel confident that they are choosing the right company. Jessi Wimer personally helped me through the process. She was very informative and made sure that every concern I had was dealt with in the most professional and efficient way. Thank you for your hard work!
Chris L.
Chris L.
17:07 08 Feb 22
Excellent service; they exceeded my expectations in timeliness and professionalism.
Bridgette M. B.
Bridgette M. B.
23:24 10 Dec 21
Client services provided quick and accurate responses.
James G.
James G.
17:49 30 Nov 21
Very helpful and they respond quickly to any questions.
Eva Hammel H.
Eva Hammel H.
16:46 30 Nov 21
Katrina Fearn, Client Service Manager at Surety, is an absolute pleasure to work with!! She is always highly responsive, and has provided me nothing but excellent service since our first interaction. I highly recommend working with her and the Surety team. They will always go above and beyond. Thank you for all that you've done!
Zakieh A.
Zakieh A.
16:38 04 Nov 21
I have been working with Steve Shike and he has been so helpful. I purchased the wrong bond and Steve instantly requested a refund on my behalf and called back with the good news. I appreciate him for helping me figure out my situation in such a timely matter. Thank you Steve for responding to my calls and emails promptly.
Ashley W.
Ashley W.
18:25 10 Aug 21
Gerry J.
Gerry J.
16:30 08 Aug 21
Katrina and Surety Solutions was awesome to work with and made the process seamless. Even after I, PERSONALLY, made a mistake and caused a delay, Katrina was able to spot my mistake and kindly address the error while still delivering my bond as if nothing had happened.I have nothing but good things to say about Surety Solutions.
Xavier A.
Xavier A.
15:40 22 Jul 21
jerry T.
jerry T.
04:44 03 Jul 21
Katrina and Surety Solutions were very helpful and fast. I needed to change the bond I ordered and they handled that within minutes. Their response time to emails and request were great and that is why I will continue to work them both. All I ask for is relatively decent response time when there are issues that need resolved and Katrina far exceeded that and was friendly on top of everything else. Well done.Kris
Kristopher M.
Kristopher M.
14:23 24 Jun 21
Grace answered the phone immediately with a positive attitude and willingness to help. She followed through professionally and promptly through entire process.
Danny S.
Danny S.
14:41 15 Jun 21
Surety Solutions has been the most amazing and easiest company to work with on Bonds in my past 17 years of doing insurance. They are very quick to respond and very personal to work with. Jake Durrant is absolutely the best!
Bonnie A.
Bonnie A.
20:39 20 May 21
Suzie T.
Suzie T.
17:14 07 May 21
Easy experience.
Tonya B.
Tonya B.
01:18 21 Apr 21
I had the pleasure of working with Katrina Fearn to obtain mortgage broker surety bonds and I can say with zero hesitation, that she is wonderful to work with. Extremely responsive, communicative and helpful. Surety Solutions + Katrina = Great Partnership. Thanks!!!
Ryan M.
Ryan M.
20:18 19 Apr 21
Can't say enough good things about Katrina Fearn, she was exceptionally prompt, responsive and a true professional in getting me the bond in a timely manner. Just amazing customer service.
Umesh M.
Umesh M.
23:34 07 Apr 21
I needed a copy of my bond and with people working form home I thought is was going to take a long time. I got an email with the copy of my bond with in minutes. Never seen anything like that. Very Professional and fast response. thank you for good business ethic
Ernesto U.
Ernesto U.
19:08 10 Feb 21
Just obtained Mortgage Broker Surety Bond for two states. not only the price was right but service and professionalism exceeded my expectations. i can't thank Steve enough and wish i knew them sooner.
Ruslan K.
Ruslan K.
22:43 08 Jan 21
I bought a surety bond for my business. The name on the application has my middle name on it and the policy didn't. That would or could have created a problem. I wrote to customer service to complain. Well not complain but ask for it to be changed. Since it was Thanksgiving weekend I wasn't expecting to hear back till this week sometime. Well to my surprise it was "Very" Quickly. JD was very helpful and professional. Fixed it then contacted me with the corrected version. Couldn't be happier. " Good Business is Good Business"
MrDarryk
MrDarryk
05:17 01 Dec 20
JP M.
JP M.
01:46 04 Nov 20
Amazing customer service and friendly and informative reps.
Obsesion H.
Obsesion H.
04:45 26 Oct 20
Surety solutions handled my request for a Guardianship Bond professionally, with great care and provided great value to my family. Of all of the insurance companies I contacted for my need, Surety Solutions was by far the most responsive, courteous and knowledgeable. I very much appreciate their fine service!!
Irena S.
Irena S.
03:00 25 Sep 20
The entire staff from Jake to Katrina were more than professional and bent over backwards to meet mine and The State of California's requirements
Kirk G.
Kirk G.
19:10 23 Jun 20
This process could not have been easier! Mr. Chipman sent me an email link and I just followed the steps. I highly recommend Mr. Beau Chipman to anyone who needs this service.
Sharon H.
Sharon H.
23:29 28 Apr 20
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What does an ERISA Bond cover?

A common misconception is the bond provides coverage to the plan administrator. However, an ERISA Bond actually protects the beneficiaries of a pension or employee benefit plan.

An ERISA Bond is a 3-party contract between the obligee, principal and surety.

  • The Obligee – The beneficiaries of the plan. If the plan administrator mishandles the fund and causes loss, the obligee can make a claim against the bond.

  • The Principal – As the plan administrator, you are the principal associated with the ERISA Bond. If the Surety pays out on a valid claim, you’re required to make them whole again.

  • The Surety – The surety is the company you choose to issue your bond. An investigation is carried out when a claim against the bond is made. If the surety finds the claim to be valid, they will payout up to the full bond amount.

As the plan administrator, you can choose to purchase Fiduciary Liability Insurance. While not a requirement, this optional coverage benefits you if you fail to maintain your fiduciary responsibilities.

What is the ERISA Bond amount requirement?

Calculating the bond amount for your ERISA Bond is fairly straightforward. Your ERISA Bond amount needs to be 10% of the plan funds you handled the previous year, but cannot be less than $1,000. If you’re unsure of what to select for your bond amount, we recommend contacting the U.S. Department of Labor to verify your bond amount requirement.

An ERISA Bond protects 401K funds from theft and dishonesty by the plan administrator.

The U.S. Department of Labor requires the plan administrator to have an ERISA Bond when managing funds tied to a 401(k) plan.

How much does an ERISA Bond cost?

Our ERISA Bonds start at low as $100. However, there are a few factors to consider when determining the cost of your ERISA Bond. Your bond cost is influenced by the bond amount you need and the term length you select. Although, the initial cost is more for a bond with a multi-year term, we discount these bonds; saving you money. Plus, your bond won’t need to be renewed for three years, instead of an annual renewal.

Most of our surety providers include “Inflation Guard” with their three-year term ERISA Bonds $500,000 and under. This means if your plan funds increase mid-term, you don’t have to pay an additional premium. You’ll remain compliant with the U.S. Department of Labor if plan funds increase mid-term with no extra cost to you.

ERISA Bonds with a bond amount of $500,000 or less do not require a credit check. Your credit score does not influence the cost of your ERISA Fidelity Bond.

View instant quotes for your ERISA Bond now

What does "non-qualified assets" mean?

One of the questions on our ERISA Bond application is “Does the plan include any non-qualified assets?” But, what are “non-qualified assets?”

Money that can be used for any purpose and funded with post-tax dollars is considered non-qualified assets. Non-qualified investments typically don’t restrict your ability to contribute to them in a given year.  You are also not required to withdraw money out of your account when you reach a specific age. Not all non-qualified investments grow on a tax-deferred basis.

Money specifically designated to provide income during your retirement years and is funded with pre-tax dollars is considered qualified assets. Qualified investments, such as your employer’s 401k, generally allow you to contribute to your account up to a dollar amount specified by the Internal Revenue Service (IRS) each year. Additionally, you’re penalized for taking withdrawals before you reach the age of 59 and a half. However, you are required to start taking withdrawals prior to turning 70 and a half years of age. 

The majority of qualified assets include provisions allowing both you and your employer to contribute to your retirement account. Contributions from both sources grow tax-deferred.

What happens if a claim is made?

The beneficiaries of the pension or employee benefits plan can make a claim against your ERISA Bond if they experience loss due to you mishandling plan funds. If a claim is made, the surety company that issued your bond will conduct an investigation to determine the validity of the claim. Acts of fraud or dishonesty by the plan administrator could be embezzlement, forgery, larceny, misappropriation, theft or willful misapplication, to name just a few examples.

If the surety finds the claim to be valid, they will payout up to the full bond amount to the claimants. The responsibility to repay the surety in full rests on you, as principal of the bond. Ultimately, the ERISA Bond is coverage for the plan beneficiaries, not for you, the plan administrator.

Where to get an ERISA 401(k) Bond

At Surety Solutions, A Gallagher Company, we’ve made the process of getting an ERISA Fidelity Bond quick and easy. Simply select the bond amount you require using the drop down below, then click the “View Quotes” button. You’ll receive instant quotes from top surety companies, including CapSpecialty Surety & Insurance Specialists, The Hanover Insurance Company, Westfield Insurance Company and many more. Choose the quote that best fits your needs and submit your application to buy your bond.

Select your ERISA Bond amount to get free quotes

Our team is licensed to issue bond in all 50 states. If you have a question, contact us here, send an email to info@suretysolutions.com or call our office at (866) 722-9239. We look forward to issuing your bond!

Additional bond resources

Find answers to frequently asked Surety Bond questions.

We also issue Business Service Bonds and Employee Dishonesty Bonds.

What is the difference between a Surety Bond and traditional insurance?

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