How Much ERISA Bond Coverage Do I Need?
ERISA bond coverage is generally at least 10% of funds handled in the prior plan year, with statutory minimums and maximums.
DOL’s formula also has special rules, including a higher cap for plans holding employer securities. Verify the current calculation for each handler.
Use the bulletin’s Q35–38 and underlying regulations to calculate the amount for each plan and person; do not use total plan assets automatically as each person’s handled amount. Verify how the bond aggregates limits across plans and whether it names or otherwise identifies every plan. Have a benefits professional or the surety confirm the calculation, exemptions, and adequate limit for the present plan year.
