Erisa Fidelity Bond 2025: Ensure Your Compliance

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Dec 02, 2024, 08:29 ET

An Insurance News Net, Inc. Feature

SAN JUAN, Puerto Rico, Dec. 2, 2024 /PRNewswire/ -- Compliance with the Employee Retirement Income Security Act of 1974 (ERISA) remains a critical obligation of retirement plan sponsors and trustees. Federal regulations mandate that every regulated plan must be insured by an ERISA fidelity bond. This bond safeguards plan assets from fraud or other dishonest acts committed by plan trustees, ensuring the integrity of the plan's funds. Adherence to this requirement is non-negotiable.

Surety One, Inc., a leading provider of ERISA fidelity bonds, emphasizes the importance of compliance. According to the company's underwriting team, "If you sponsor or manage any type of regulated retirement plan, having an ERISA bond in place is essential. Non-compliance is widespread, but ignorance of the Federal Code requirement does not absolve plan fiduciaries from their responsibilities."

Recent updates to the rules for long-term part-time employees (LTPTE Rules) further reinforce the need for diligence. If a long-term part-time employee qualifies to participate in a Solo 401(k) plan, the plan is no longer exempt from ERISA and must meet the fidelity bond requirement.

Surety One, Inc. simplifies the bonding process with a streamlined, six-line application and integrated payment form. "Once submitted, your fidelity bond is in your hands within minutes," assures the company. While ERISA fidelity bonds are generally low-risk, challenges can arise with plans containing non-qualified assets or requiring retroactive bonding. Surety One, Inc. offers specialized programs to address these non-standard needs.

As an international insurance intermediary headquartered in Puerto Rico, Surety One, Inc. operates across the United States, Canada, and the U.S. Virgin Islands. All ERISA fidelity bonds issued by the company are backed by highly rated surety insurers listed on the U.S. Treasury's circular (T-List) of approved providers. The program extends coverage to plans with unique requirements, including employer-issued securities (ESOPs), labor unions, multi-employer structures, and non-qualified assets, in addition to standard plans.

For more information or to submit an application online, visit https://ERISA-Bonds.com. You can also contact Surety One, Inc. at (800) 373-2804 or via email at [email protected].

SOURCE Surety One, Inc.