ERISA Administrators – Tax Season is Best Time to Adjust ERISA Surety Bond Coverage

Written by JoAnn Smith on May 18th, 2013. Posted in ERISA Bonds

     ERISA surety bonds
Are your retirement plans fully secured?
BuySurety, a leading provider for surety bonds would like to remind any administrators for company retirement plans and 401K plans that tax time is the best time to review your ERISA bond coverage and make any adjustments that may be needed. Although the April 15th deadline may have just passed, a review of the 2013 allocations for ERISA bond coverage should be reviewed at this time to plan for the next year. With the Employee Retirement Income Security Act of 1974 requiring the establishment of ERISA bonds for securing any pension, retirement or 401(k) plans, a review of the amount of surety bonds in place is not only prudent but is good protection.

Surety Bonds for Protection

These surety bonds will protect any company that has retirement accounts from actions taken by administrators that are dishonest including:
  • Larceny
  • Theft
  • Embezzlement
  • Forgery
  • Misappropriation
  • Wrongful Abstraction
  • Wrongful Conversion
  • Willful Misapplication
Because plan assets change from year to year it is important to review the assets of the fund and make appropriate changes on a yearly basis at the minimum. Also, because asset security requirements are different for Qualifying Asset Funds and Non-Qualifying Asset Funds, each type will need to be assessed separately. Qualifying Asset Funds are required to be protected through ERISA Surety Bonds that are equal to a minimum of 10% of the value of the funds. Non-Qualifying Asset Funds must be protected with surety bonds valued at 100% of the value. BuySurety has a number of ways we can help company retirement plans meet their ERISA requirements. Talk to one of our agents today to find out if multiple-year ERISA surety bonds that adjust for annual rates of inflation would be the right fit for your company’s retirement packages.

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