
The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to regulate employee benefit plans, such as a 401k. The Act requires that a fidelity bond be in place to protect the benefit money from fiduciaries or those who handle funds or other property.
The Act states that the coverage necessary for each plan must be no less than 10% of the amount of plan funds. The Act also requires every plan to bond any fiduciary that handles plan assets. This is different from an insurance policy because the bond does not pay losses; rather, it guarantees that you will be able to pay all losses up to the amount of the bond.
Bonding Solutions will meet all of your bonding needs to ensure that your employee benefits are secure. With 30 years of experience, there is no doubt why Bonding Solutions is one of Arizona's most trusted bond agencies. Get a free quote and start the process of obtaining your ERISA bond today.