Copy of ERISA Bond required again for '03 filings?

[Guest jusducki]

If a client provided proof of coverage for '02 and bond covers three year period, do we need to again ask for proof for the 5500? My thought is no but sometimes my thoughts differ from the DOL's!

[Belgarath]

We've never actually required that we see the bond. We just have the client certify the name of the bonding company and the amount of the bond for the period in question. If this is what you mean by proof, then I'd say yes, you need proof.

[Harwood]

Form 5500 no longer asks the name of the bonding company, only the bond amount.

If the Plan Sponsor is responsible for signing the 5500 and certifying its accuracy, is it necessary for you to see the bond?

[Guest jusducki]

I realize they're ultimately responsible but also know that they depend heavily on us and I wanted to make certain they all had bonds in place. How do you know the '03 forms don't ask anymore for the bond company? Didn't know the 5500 packages were available yet...

[WDIK]

While the name of the surety company is no longer required on Form 5500, if it is a small plan with over 5% of its investments in "nonqualified assets", I believe that you must disclose the name of the surety company in the summary annual report to meet the requirements of exemption from the independent audit.

That being said, we ask the client to provide us with the name of the surety company and bond amount and take their word on it. Even so, we have had to help nearly all of our clients get their bonds in place.

[Belgarath]

Yes, and although we aren't directly involved in the bonding process, I hear rumors that they may be in for sticker shock when it comes time to renew. I've heard that many companies are planning substantial increases in the premuim rates. Don't know if it's true or not.