ERISA or Pension Trust Bonds
Who Needs One?
by Kyle Zehr, CIC, CWCA

Businesses and organizations often need to secure several types of bonds, from Contract Bonds to Payment Bonds, all based on different needs.

One common bond needed by all businesses and organizations that have a qualifying profit sharing or pension plan is an ERISA (Employee Retirement and Income Security Act) Bond or Pension Trust Bond. These bonds protect the money in the retirement plans against fraud and dishonest acts by the appointed administrators of the plan.

The Pension Reform Act of 1974 requires all funds of profit sharing or pension plans to be bonded for 10 percent of the funds handled.

ERISA or Pension Bonds are relatively inexpensive and can often be written on a three year, pre-paid basis. The bond amount can be increased as the fund grows. Please contact our commercial team at 267-384-5300 for exact details and questions on ERISA or Pension Trust Bonds.

FIFS Connection, Fall 2007, Vol.4, No. 4

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Contact Kyle Zehr, CIC, CWCA,  Manager