Excerpt: Responding to questions raised by its ERISA plan examiners, the Employee Benefits Security Administration (EBSA) issued clarifying guidance -- in easy-to-use question and answer format -- on ERISA's fidelity bond requirements. It made clear that third-party service providers must be bonded if they 'handle' funds, that the $1,000,000 maximum limit for plans holding employer securities does not apply where a plan holds the securities merely because of investment in a pooled investment vehicle, and that the bond may use an omnibus clause to name insured plans (e.g., a bond may cover 'all the employee benefit plans' sponsored by the company).

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