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Posted

I have a plan that has been in existence since 1994, but

did not have any fidelity bond until very recently. This arose as a misunderstanding between the insurance company and the plan as to what coverage was required.

The plan is administered and the assets are held by a large bank. The bank is properly bonded. However the trustees of the plan are not bank employees.

My question is whether this is a problem that needs to be reported to the DOL? Doesn't the 5500 form require the administrator to confirm the bonding requirements?

Any suggestions on how to proceed?

  • 2 weeks later...
Posted

The failure to have the proper fiduciaries bonded will be reported to the PWBA/DOL on the Schedules H or I. So this would take care of "notifying" the DOL.

I would just have the company contact their casualty insurance provider and have the two trustees ( whom I assume are also fiduciaries to the plan) bonded.

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