September 24, 2014

ERISA 40th Anniversary

In addition to being National Preparedness Month this September also marks the 40th Anniversary of ERISA. ERISA stands for Employee Retirement Income Security Act which was enacted September 2, 1974. The intent of ERISA was to prevent companies from deliberately underfunding pensions and spending the money. If you have a 401k plan or profit sharing plan you almost certainly have an ERISA bond in place. The bond limit should be equal to or greater than 10% of plan assets. Our agency is able to place ERISA bonds with reputable surety companies for you. In addition to the ERISA Bond which protects the plan, you may also need Fiduciary Liability coverage to protect the fiduciary on that plan. Many of our clients have been surprised when we’ve sent them back to plan managers to find out who the fiduciary is, only to find out their name listed. Make sure you’re protected, let us review your ERISA bond or answer any questions you have regarding ERISA and Fiduciary Liability.