How To Calculate The ERISA Bond Amount?

You probably know your bond amount already, but if not, here's how to find out.

Rule 1

The bond amount must be equal to at least 10% of the amount of funds the administrator handled in the previous year.

Rule 2

The bond minimum is $1,000.

If this is a new plan, your bond amount will be $1,000.

Rule 3

Maximum bond amount is $500,000 per plan.

If a bond is covering more than one plan, the bond amount can be more than $500,000.

But in most cases ERISA bonds are purchased on a per plan basis.

Rule 4

If the plan holds company stock or any employer securities the maximum bond amount is $1,000,000.

Rule 5

If multiple people are in charge of a plan and handle plan funds, each person must be bonded at the 10% or $1,000 minimum.