Get the free 3rd PARTY ERISA BOND APPLICATION

This document is an application for a Fiduciary Dishonesty Bond designed for employee benefit plans under ERISA. It collects detailed information regarding the fiduciary, including their address,

How to fill out 3rd party erisa bond

How to fill out 3rd PARTY ERISA BOND APPLICATION

1. Begin by gathering the required information, including your company's name, address, and contact details.
2. Provide information about the plan sponsor and the plan administrator, including their names and contact information.
3. Specify the type of ERISA bond required and the amount for which you are applying.
4. Complete any required questions regarding the nature of your business and the employee benefit plans involved.
5. Detail the names and positions of individuals who will be covered by the bond.
6. Sign and date the application, ensuring that all information is accurate and complete before submission.
7. Submit the application along with any necessary documentation and payment for the bond premium.

Who needs 3rd PARTY ERISA BOND APPLICATION?

1. Any business or organization that manages employee benefit plans and meets the requirements set by ERISA (Employee Retirement Income Security Act) needs a 3rd Party ERISA Bond to protect against fraudulent activities.

People Also Ask about

Who sells ERISA bonds?

Colonial is a leading provider of ERISA fidelity bonds, which ensure your retirement or benefit plan is U.S. Department of Labor compliant with ERISA bonding requirements.

What is the penalty for fiduciary breach of ERISA?

The penalty under ERISA Section 502(l) is equal to 20% of the "applicable recovery amount." Applicable recovery amount means any amount recovered from a fiduciary or other person with respect to a breach or violation: pursuant to any settlement agreement with the Secretary, or.

What happens if you don't have a fidelity bond?

It can be a “red flag” on your Form 5500. If you don't get one, the DOL may impose sanctions, and the IRS may require you to have the plan audited by a public accounting firm each year. Fidelity Bonds are required for all plans subject to ERISA.

Is Erisa bond mandatory?

ERISA requires every person who handles funds or other property for an employee benefit plan, including 401(k) plans, to be bonded. 3. How much fidelity bond coverage is required? At the beginning of each plan year, the coverage amount of the bond must be at least 10 percent of the amount of funds handled.

What is the difference between ERISA bond and ERISA coverage?

ERISA is a federal law that sets the rules for employee benefit plans and requires fiduciaries to be covered by a fidelity bond. ERISA fidelity bonds protect plan participants from loss due to fraud or dishonesty, while fiduciary liability insurance protects companies from legal liability arising from plan sponsorship.

What are the bonding requirements for ERISA?

Under ERISA, each person must be bonded for at least 10% of the $1 million or $100,000. (Note: Bonds covering more than one plan may be required to be over $500,000 to meet the ERISA requirement because persons covered by a bond may handle funds or other property for more than one plan.)

What is the penalty for not having an ERISA bond?

Although maintaining a sufficient bond is a regulatory requirement, there is no penalty when coverage falls below the minimum amount. However, plans that are consistently under-bonded may raise red flags with government agencies that could result in an investigation to ensure there are no other problems.

What is the Erisa bond crime?

An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty. Fraud or dishonesty includes, but is not limited to, larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts.

For pdfFiller’s FAQs

What is 3rd PARTY ERISA BOND APPLICATION?

The 3rd Party ERISA Bond Application is a form used to obtain a fidelity bond that protects employee benefit plans from losses due to fraud or dishonesty by individuals who handle plan funds.

Who is required to file 3rd PARTY ERISA BOND APPLICATION?

Any entity or individual who handles or has access to plan assets of employee benefit plans governed by the Employee Retirement Income Security Act (ERISA) is required to file the 3rd Party ERISA Bond Application.

How to fill out 3rd PARTY ERISA BOND APPLICATION?

To fill out the 3rd Party ERISA Bond Application, provide relevant details such as the name of the plan, the bond amount requested, and information about the individuals or entities who will be covered by the bond. Ensure all sections are completed accurately and include necessary signatures.

What is the purpose of 3rd PARTY ERISA BOND APPLICATION?

The purpose of the 3rd Party ERISA Bond Application is to secure a fidelity bond required by ERISA, which protects employee benefit plans from financial loss due to fraudulent actions of fiduciaries or service providers.

What information must be reported on 3rd PARTY ERISA BOND APPLICATION?

The information that must be reported includes the name and address of the plan sponsor, the type of plan, the amount of coverage needed, the names of individuals who will be bonded, and any past bond claims or issues.