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Trustee Bonds

Fidelity Bond

ERISA requires Plan Fiduciaries and others who “handle” plan assets to be bonded to protect the plan against loss through fraud or dishonesty. Plan Fiduciaries should be insured for a minimum of 10% of the plan assets, but not less than $1,000. The maximum amount required is $500,000. If you invest in a non-qualifying asset (such as real estate, private ventures, etc.) the ERISA fidelity bond must cover the entire market value of that asset, rather than just 10% of the plan assets.

Fidelity bonds are only required for plans with employees other than owners.

Fidelity bonds serve a different function than errors and omissions insurance. Because errors and omissions insurance does not protect the plan against loss due to criminal activities, it is not a substitute for a fidelity bond.

Fiduciary Bond

Fiduciary bonds protect plan sponsors and trustees if they are sued for the fiduciary decisions they make on behalf of an employee benefit plan. The bond provides coverage for the cost of the defense of the fiduciaries and any penalties assessed. ERISA does not require the purchase of a Fiduciary bond.
A Fidelity and/or Fiduciary Bonds may be obtained through your business property and casualty insurance carrier. Alternatively, you can purchase a bond through our relationship with Colonial Surety. Please note, Colonial Surety Company will compensate Hayashi & Wayland Retirement Plan Services if a bond is placed for your plan(s).

Contact Retirement Plan Services

Not sure which retirement plan is the best option for your situation? If so, then contact our retirement plan professionals to determine the best plan options for you. For additional information on our retirement plan services please contact Steve Shearn at 831-759-6300, or click here to email Steve.