Fidelity Bond

[PFranckowiak]

Client has two plans - one Union and one nonunion.

1. Can the two plans be covered under one bond?

2. If the one plan needs $500,000, and the other 70,000 do we add the two together or is their one limit per employer?

I think they have to have the two added together, but I cannot find something to "prove" it to the client.

Thanks - any comments or help appreicated.

Pat

[Guest Laurel]

It is possible for both plans to be named under the same bond, as long as each plan is covered for the correct amount.

If a person handles assets for more than one plan covered under that bond, the amount of the bond has to be sufficient to cover him/her for at least 10% of the total amount that the person handles for all the Plans added together. This means if a person handles $100,000 in Plan 1 and $200,000 in Plan 2, the total amount that he/she handles is $300,000 and s/he has to be bonded for at least $30,000.

See Field Assistance Bulletin No. 2008-04 http://www.dol.gov/ebsa/regs/fab2008-4.html#AmountOfBond

[PFranckowiak]

Thanks for your help!

Pat